What is Revenue per Seller, and how do you calculate it?
In short – Average revenue generated per seller. A key marketplace metrics you should track.
Revenue per Seller Formula
Revenue per Seller = Total Revenue ÷ Number of Active Sellers
Revenue per Seller helps in understanding the productivity and success of sellers on the platform. It can indicate the health of the seller community.
Monitoring this metric can inform support strategies for sellers to increase their sales, benefiting both the sellers and the marketplace.
How can you find your Revenue per Seller?
You should generally be able to calculate your Revenue per Seller 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