What is Take Rate, and how do you calculate it?
In short – Percentage of the transaction value that the marketplace retains as revenue. A key marketplace metrics you should track.
Take Rate Formula
Take Rate = (Marketplace Revenue ÷ GMV) × 100%
Take Rate is the commission or fee percentage that the marketplace charges on each transaction. It represents the marketplace's revenue model and directly impacts profitability.
A balanced take rate ensures competitiveness while maintaining revenue margins. Monitoring this helps in pricing strategies and evaluating financial performance. This metric helps businesses understand key operational efficiencies, areas for improvement, and strategic opportunities to drive growth and user engagement.
How can you find your Take Rate?
You should generally be able to calculate your Take 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.