Keeping tabs on key indicators as an Amazon seller is essential for gaining insight into company performance and making modifications to boost outcomes. You can’t assume anything about how well your company is doing.
The health of your company, individual goods, and overall sales may all be gauged by keeping tabs on key Amazon seller data.
It might be taxing to maintain tabs on so many variables in Seller Central in an effort to improve your Amazon company. As the market evolves and becomes more complicated, Amazon often introduces new, more advanced measures.
Keeping an Amazon business afloat in today’s cutthroat e-commerce environment is no easy task. Gaining traction on the platform calls for in-depth research, calculated moves, and an intuitive grasp of the key performance indicators. In this in-depth and informative article, we will break down the essential Amazon Seller Metrics that every seller needs to track in order to maximize efficiency and maintain development. We will walk you through everything from analyzing conversion rates to keeping tabs on customer happiness, arming you with the information you need to succeed in Amazon’s data-driven marketplace. Prepare to fasten your seatbelts as we go into the critical metrics of your Amazon business.
The metrics, features, and advantages of an Amazon FBA company will be discussed in this article.
- Rate of change
- Rating search terms
- Index of Inventory Efficiency (IPI)
- Status of Amazon Fee Account
Rate of change
One of the most crucial metrics to monitor for any product you sell on Amazon is conversion. The conversion rate is the proportion of site visitors that made a purchase after seeing a product page.
The lower your conversion rate, the more likely it is that anything is putting off prospective buyers. It might be due to a number of factors, such as a high asking price, unsatisfactory product photos, insufficient details provided in the listing content, negative customer feedback, etc.
As an Amazon vendor, knowing how well each product is selling by the unit session % is crucial.
Which conversion rate is optimal?
It’s natural to have questions about your items, such as what constitutes a “good” conversion rate. A “good” conversion rate is relative and depends on your business’s objectives, however we may use averages to guide our thinking.
While a conversion rate of 1%-3% is considered ordinary for an e-commerce website like Shopify, it may be as high as 10% on Amazon.
If your items aren’t in the top 10 percent, you still have space to grow. Above that mark, you may rest certain that your things are selling well.
Rating search terms
How well your items fare in Amazon’s search results for a given term is measured by this statistic. The greater your keyword ranking, the more probable it is that prospective clients will notice your stuff online.
Ideally, you’d have many instances of your product showing up on the first page of Google search results for each of your primary keywords. That way, your product will always rank well in the search results, regardless of the keywords people choose to find it. The top four results for the term “boat trash can” are highlighted above. Sponsored product ads for goods matching that keyword are shown above.
For your items to be seen by more customers, they need to appear higher in the search results for the keywords you’ve chosen to promote.
Different from your Best Sellers Rank is what we’re discussing about. Your product’s overall position within its category is monitored by BSR. Your product’s keyword ranking reflects its visibility in Amazon’s search results in response to certain queries.
If you are selling via FBA, you will be assigned an Inventory Performance Index (IPI) score. Your FBA inventory management is reflected in your IPI score, a statistic exclusive to Amazon sellers. If your Inventory Turnover Ratio (ITR) is high, it suggests you’re moving merchandise fast and effectively. If it’s low, you either have too much stock on hand or sales are weak.
Monitoring your IPI will provide you insight into your inventory’s overall performance, allowing you to see what’s selling and what’s sitting around doing nothing.
Here are the main contributors to your IPI score:
- Too much stock on hand
- Conversion rate
- Ratio of Stock on Hand
- Inventory left stranded
A yellow or red light indicates that one of these metrics is trending higher than what Amazon considers to be acceptable.
Keeping track of your TACoS, or total advertising cost of sale, is crucial if you’re an Amazon seller who wants a comprehensive understanding of how much their advertising is costing them.
Total Ad Spend (TACoS) compares paid search advertising expenses to total sales income (both paid and unpaid).You should expect a lower TACoS if your advertising activities are successful and your items sell more organically.
The Return on Advertising Spend (RoAS) statistic tracks the amount of money generated in sales in relation to the amount of money spent on advertising. In a nutshell, it reveals whether or not your current advertising effort is profitable.
The greater your RoAS, the more successful your advertising initiatives. If you’re going to invest in Amazon advertising, you should check this measure to make sure your campaigns are successful.
Advertising cost of sale (ACoS) is synonymous with total asset cost of ownership (TACoI). However, TACoS takes into account both advertising and organic revenue, whereas ACoS solely looks at the former.
ACoS is a crucial indicator for Amazon sellers to evaluate the success of their advertising strategies.
Having a lower ACoS is preferred since it means less money is being spent on advertising to get the same level of sales.
However, the optimal ACoS will change based on the prices of your products, the objectives of your marketing campaign, and your budget.
Taxes on Amazon
Oh, those pesky Amazon charges. You will have to pay Amazon a charge whether you use FBA or FBM to sell your products. However, if you want to use Amazon’s Fulfillment by Amazon (FBA) service to ship your products to customers, you’ll have to pay FBA costs, which are subject to change.
While fees aren’t technically a measure of Amazon seller success, FBA sellers still need to keep tabs on them to guarantee they’re turning a profit. This is also a great method to check whether Amazon is costing you too much for storage or shipment.
Your Amazon Seller account’s health is a crucial indicator to monitor, since any issues might result in a suspension of your account and the loss of all your sales.
There are three main components to your account’s well-being:
Rate of defective orders and quality of customer serviceConformity with Product Policies
Effectiveness in Shipping
You, as an FBM seller, should always be monitoring your response times to consumer inquiries, shipment times, and the accuracy of the tracking information you provide.
If you’re an Amazon seller, monitoring these KPIs can help you keep your company on track and, more importantly, profitable.
In conclusion, maintaining success in today’s cutthroat business environment requires familiarity with and attention to Amazon seller data. Metrics like Order Defect Rate, Cancellation Rate, Late Shipment Rate, Perfect Order Percentage, and Buy Box Percentage may help you fine-tune your sales and fulfillment processes. Monitoring these KPIs can help you run a more successful company and maintain compliance with Amazon’s performance criteria, both of which will increase your chances of having a positive impact on your bottom line.
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