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.
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
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