To succeed on Amazon, you must be data-driven, strategic, and consistently improve your business processes to be one step ahead of the competition.

This is where these indicators start to play a major role in your eCommerce performance.

You will be able to improve your company's performance by recording and examining these data points. You will also be able to spot areas that need improvement and make well-informed decisions that will considerably boost your overall sales and profitability.

We're going to examine in detail the most crucial KPIs for Amazon sellers in this post. Understanding these crucial online selling success indicators is a good idea whether you're an experienced seller or just getting started (or failure).

Your eCommerce processes can be optimized, customer happiness can be raised, and most significantly, your Amazon business can be taken to the next level.

Sales Metrics

Sales are ultimately what matter. So let's begin right here.

Sales metrics are essential for Amazon sellers since they may help you understand how your company actually runs. You'll be in a position to decide how to increase your business' overall profitability with great knowledge.

Your gross and net sales, average order value, conversion rate, repeat purchase rate, customer lifetime value, and sales velocity are a few of the key sales indicators. Gross and net sales give a comprehensive view of the money the seller made. Your marketing and sales methods can be evaluated for effectiveness using the average order value and conversion rate.

You can evaluate if you're developing customer loyalty and optimizing long-term revenue by looking at your repeat buy rate and customer lifetime value. Sales velocity is a topic that is frequently discussed today. It's a statistic that Amazon employs to choose which sellers appear in the Purchase Box. You can use it to spot patterns and change your inventory levels accordingly.

By tracking these sales metrics, you’ll be able to optimize your operations, improve customer satisfaction, and put more money in the bank!

  • Gross sales: The sum of a seller's revenue before any deductions, such as commissions or refunds.

  • Net sales: The sum of a seller's revenue after any deductions, such as commissions and refunds.

  • Average order value: The typical sum of money a consumer spends on each order.

  • Conversion rate: The proportion of visitors who actually make a purchase from a seller's listing.

  • Repeat purchase rate: The proportion of clients that buy from a seller more than once.

  • Customer lifetime value: The total amount of money a seller might anticipate making from a customer over the length of their relationship

  • Sales velocity: Refers to the speed with which an Amazon seller's goods are moving off the site.

Inventory Metrics

It's challenging to sell if you don't know what you have on hand!

Maintaining track of your goods as they go through the supply chain is more than just a chore; it may be the difference between failure and success for your company. Inventory control may significantly increase productivity while lowering expenses. It directly results in greater profits, which affect your bottom line. You can guarantee you have what your consumers want when they need it with effective inventory management!

Sell-through rate and days of inventory let you assess whether or not you are meeting demand, while inventory turnover rate and days of inventory give you crucial information about how quickly your products are selling.

FBA storage costs, stockout rates, and order failure rates may have a negative impact on customer satisfaction as well as cost you money. For optimal sales performance, five vital criteria must be monitored!

By keeping close tabs on stock levels, you can increase sales and profits. You may provide a flawless consumer experience by keeping a careful check on your inventory data. Additionally, it can also help reduce storage expenses, as paying expensive Amazon storage fees could affect the overall profitability of your company.

  • Inventory turnover rate: The frequency with which a seller's stock is sold and replaced over a predetermined time frame.

  • The Late Shipping Rate (LSR):  Measures the frequency with which an order is delivered to a client after the scheduled delivery time.

  • Days of inventory: The typical time a seller needs to sell all of their inventory.

  • Sell-through rate: The proportion of stock that is sold within a specified time frame.

  • FBA storage costs: The costs Amazon levies to keep a seller's stock in their warehouses.

  • Stockout rate: The proportion of time that a seller's inventory is out of stock.

  • Order defect rate: The percentage of orders that have a defect, like a delayed delivery or a product that is damaged.

Advertising Metrics

Until now, Amazon Pay per Click (PPC) advertising was simply one method of introducing an eCommerce product. It's virtually required now. Demand-Side Platform (DSP) advertising from Amazon is quickly gaining popularity as a top-tier ad offering. And your capacity to respond to data will determine whether you succeed or fail.

Using data and analytics is essential if you want to be successful as an Amazon seller. You can learn the terms that not only assist customers locate your goods but also help keep the cost of your advertising campaign in check thanks to data uncovered through keyword research.

The marketplace's data transparency is still being improved by Amazon. That's excellent news for you. Make sure you utilize the information at your disposal.

Many Amazon sellers don't treat the site like a legitimate business. That gives those sellers who do a huge chance.

  • Advertising cost of sales (ACoS): The percentage of sales income that is spent on advertising is known as the advertising cost of sales (ACoS).

  • Total Advertising cost of sales (TACoS): This number measures the relationship between ad spend and total sales, and is the ratio of ad spend to total sales (in %).

  • CTR: The proportion of viewers who click on a seller's advertisement after seeing it.

  • Cost per click (CPC): The sum a seller pays over each time a user clicks on their advertisement.

  • Impressions: The quantity of times a seller's advertisement is shown to potential buyers.

  • Return on advertising spend (ROAS) : Is the revenue a seller's advertising efforts create in relation to the money invested in those ads.

  • Conversion rate (CVR): The proportion of customers who buy anything after clicking on a seller's advertisement.

Customer Metrics

It might be challenging to measure your success as an Amazon seller if you aren't considering the experience of your customers. Customer metrics are essential elements that help you understand how customers engage with your organization.

When it comes to boosting sales earnings, crucial information like customer acquisition cost (CAC), retention rate, seller feedback rating, product review scores, order cancellation rate, and negative feedback may all make a huge difference.

It may be possible to optimize your marketing and sales potential by accurately tracking customer metrics. It will not only help you build lasting relationships and improve the quality of your products, but it might also help your company become more profitable.

  • Customer acquisition cost (CAC) is the price associated with getting a new client.

  • Customer retention rate: The proportion of clients who keep buying from a seller over time.

  • Product review rating: The overall score that customers who post reviews give a seller's products.

  • Seller feedback rating: The average rating given to a seller by customers who leave feedback.

  • Negative feedback rate: The percentage of orders for which customers provide unfavorable feedback.

  • Order cancellation rate: The percentage of cancelled orders that are either made by the buyer or the seller.