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. This metric helps businesses understand key operational efficiencies, areas for improvement, and strategic opportunities to drive growth and user engagement. This metric provides deep insights into business performance, helping to identify trends, optimize strategies, and improve overall marketplace efficiency.
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
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.