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. This metric helps businesses understand key operational efficiencies, areas for improvement, and strategic opportunities to drive growth and user engagement.
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
Net Promoter Score (NPS)
A measure of customer loyalty and satisfaction based on user feedback.
Average Order Value (AOV)
The average value of orders placed on the platform.
Supplier Lifetime Value (SLV)
The projected revenue generated by a supplier over their tenure on the platform.
Repeat Purchase Ratio
The proportion of customers who make repeat purchases over a given period.
Customer Lifetime Value (CLV)
The projected revenue a customer will generate during their relationship with the business.