What is Repeat Purchase Rate, and how do you calculate it?
In short – Percentage of customers who make more than one purchase. A key marketplace metrics you should track.
Repeat Purchase Rate Formula
Repeat Purchase Rate = (Customers with Multiple Purchases ÷ Total Customers) × 100%
Repeat Purchase Rate reflects customer loyalty and satisfaction. A higher rate indicates that customers are returning to make additional purchases.
This metric helps in assessing the success of customer retention strategies and the overall health of the customer base.
How can you find your Repeat Purchase Rate?
You should generally be able to calculate your Repeat Purchase Rate 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