What is Number of Active Buyers, and how do you calculate it?
In short – Total number of buyers who have made purchases in a specific period. A key marketplace metrics you should track.
Number of Active Buyers Formula
Number of Active Buyers = Count of unique buyers with purchases during the period
The Number of Active Buyers reflects the number of unique customers who have made at least one purchase on the marketplace within a certain time frame. This metric is crucial for understanding the demand side and overall customer engagement.
Tracking active buyers helps in evaluating the effectiveness of marketing campaigns, customer retention strategies, and the overall user experience. An upward trend suggests a growing customer base and market share.
How can you find your Number of Active Buyers?
You should generally be able to calculate your Number of Active Buyers with tools you already posess. If that's not the case, signing up for an analytics tool may make sense.
Among others, twosided is one of the tools you could consider. Out-of-the-box, you'll get over two dozens marketplace KPIs and detailed tracking for your supply, demand and other factors that determine marketplace health.
Explore other metrics
Order Frequency
Average number of orders placed by a buyer within a specific period
Cross-Sell Rate
Percentage of transactions that include additional products or services
Supply-Demand Ratio
Ratio of available listings to active buyers
Listing Quality Score
A metric evaluating the quality of product listings based on predefined criteria
User Net Adds
Net increase in the number of users over a specific period