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Seller Acquisition Cost (SAC) is a metric that measures the cost of acquiring new sellers for a marketplace platform. It includes all the expenses related to marketing, advertising, and other activities aimed at attracting new sellers to the platform. These expenses can include paid advertising, content marketing, affiliate marketing, referrals, and any other promotional activities.
To calculate SAC, you need to divide the total cost of acquiring new sellers by the total number of new sellers. For example, if a marketplace spends $10,000 on marketing and acquires 100 new sellers, the SAC would be $100 per seller.
SAC is an important metric for online marketplaces because it can help them understand the effectiveness of their seller acquisition strategy and identify areas where they can improve. A high SAC can indicate that the marketplace is spending too much on seller acquisition, while a low SAC can indicate that the marketplace is not investing enough in acquiring new sellers. By monitoring SAC, marketplaces can optimize their seller acquisition strategies to achieve their business goals, such as increasing revenue, improving product assortment, and enhancing customer experience.
