New Seller Growth Rate
What is New Seller Growth Rate?
This metrics calculates how fast you are adding new sellers so that you can meet the needs of your buyers. It is particularly important if you are looking to grow your online marketplace.
How to calculate New Seller Growth Rate?
(#) of new sellers this month - (#) of new sellers last month / (#) of new sellers last month = (%) New Seller Growth Rate
You could also look into calculating total seller growth rate for the a period of time. Use the following formula to calculate it:
(#) of sellers this month - (#) of sellers last month / (#) of sellers last month = (%) Seller Growth Rate
Tracking changes in new seller growth over periods of time help to understand what matters need to be investigating. For example, if the rate is growing, consider revising your onboarding process, so that these sellers become active faster and start adding listings. If, on the contrary, the rate is slowing down, consider investing in finding new sellers.
It is always advisable to consider the wider context when tracking this metric. Therefore, make sure you check the [percentage of active listings](www.geckoboard.com/learn/kpi-examples/online-marketplace-kpis/percentage-of-active-listings) per seller and the buyer to seller ratio to get an overview of the overall health of the marketplace.
How should you visualize New Seller Growth Rate?