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Supply-Demand Ratio

The balance between available listings and active buyers.

What it is

Supply-Demand Ratio compares active listings to active buyers, giving you a direct read on marketplace balance. Too much supply leaves sellers without sales; too little leaves buyers without choice. Watching this ratio by category and location tells you where to steer acquisition spend, since liquidity problems are usually local rather than spread evenly across the platform.

Formula

Supply-Demand Ratio = Number of Active Listings ÷ Number of Active Buyers