What is Seller Response Time, and how do you calculate it?
In short – Average time sellers take to respond to buyer inquiries. A key marketplace metrics you should track.
Seller Response Time Formula
Seller Response Time = Total Seller Response Time ÷ Number of Inquiries
Seller Response Time affects customer satisfaction and can impact conversion rates. Faster responses can lead to higher sales and better user experience.
Monitoring this metric helps in enforcing seller performance standards and improving buyer-seller interactions.
How can you find your Seller Response Time?
You should generally be able to calculate your Seller Response Time 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