What is Seller Activation Rate, and how do you calculate it?
In short – Percentage of registered sellers who become active on the marketplace. A key marketplace metrics you should track.
Seller Activation Rate Formula
Seller Activation Rate = (Number of Active Sellers ÷ Number of Registered Sellers) × 100%
Seller Activation Rate measures the proportion of registered sellers who have transitioned from merely signing up to actively listing products or engaging in sales within a specific time frame. This metric is crucial for understanding the effectiveness of seller onboarding processes and identifying barriers to seller activation.
Improving Seller Activation Rate can lead to increased product variety and supply on the marketplace, enhancing its attractiveness to buyers. Monitoring this metric helps identify issues in the seller onboarding journey and optimize processes to encourage more sellers to become active.
How can you find your Seller Activation Rate?
You should generally be able to calculate your Seller Activation 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
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.