What is Time to Purchase, and how do you calculate it?
In short – Average time it takes for a visitor to make a purchase after first visit. A key marketplace metrics you should track.
Time to Purchase Formula
Time to Purchase = Total Time from First Visit to Purchase ÷ Number of Purchases
Time to Purchase indicates how long it takes for a potential customer to become an actual buyer. Shorter times suggest an effective user journey and strong purchase intent.
Understanding this metric can help in optimizing the customer journey and timing of marketing messages. It can also inform retargeting strategies for visitors who do not convert immediately.
How can you find your Time to Purchase?
You should generally be able to calculate your Time to Purchase 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