Supplier Lifetime Value estimates how much revenue a seller produces across their whole tenure on your platform. It tells you which supply is worth acquiring and retaining, and how long it takes seller acquisition cost to pay back. On most marketplaces a small share of suppliers drives the majority of SLV, so retaining your top sellers protects the supply side of liquidity.
Supplier Lifetime Value (SLV)
The total revenue a supplier generates over their time on your marketplace.
What it is
Formula
SLV = Average Supplier Revenue × Supplier Retention Rate × Supplier Tenure