Amazon KPIs
We get it, selling on Amazon is exceedingly complicated. With so much to this seller platform, including Amazon Advertising, Fulfillment by Amazon, Amazon Brand Registry, Amazon Seller Central (and more), it can be hard to gauge just how successful your brand is when selling on Amazon.
After selling on Amazon for a year or so, you may grow weary of tracking your brand’s success simply on the number of units sold. Hopefully, after a year or so, you have started advertising on Amazon as well. However, with this you may still find yourself paying too much attention to sales, instead of spending time diving into other key performance indicators (KPIs).
If you are struggling to familiarize yourself with the many tools Amazon has to offer, then this blog is for you. Below, we will outline the best KPIs to track, thus helping you to better understand how to grow your Amazon brand presence.
SALES REVENUE (AND PROFIT)
Tracking sales revenue is essential in determining your business’s growth on Amazon. You want to be tracking how many of each SKU (if applicable) you are selling and at what price, in order to determine your sales revenue. Bonus points if you then subtract your total COGs and Amazon fees from this number. Ideally, you want to be tracking this every week at minimum.
However, if you have other people selling your product at different price points, make sure to track this every day, as it will give you insight into your revenue potential. Simultaneously, if you have other competing sellers, make sure to use a software service - like Helium 10 - to be able to track their inventory levels on a daily basis. You will then be able to compare your current sales revenue to the competitor’s sales revenue, to give you an idea of your potential revenue if and when you become the sole seller of that product.
ACOS
ACOS, or Advertising Cost of Sale, is essentially the return on ad spend. Essentially, you want your ACOS % to be less than or equal to your profit margin. By ensuring this, you guarantee that you are making a profit by paying for ads. Note that it takes a few weeks of constant advertising and campaign editing for ACOS to be accurate, as the data Amazon Advertising pulls is not always accurate, especially the newer the ad. Amazon Advertising has many different campaign settings, and playing around with these can heavily influence the success of your ads. If you are interested in learning more about Amazon Advertising, feel free to check out our other blogs!
INVENTORY
Monitoring your inventory is crucial to keep your Amazon account in good standing. Not only does running out of inventory lead to frustrated customers who are less likely to return to buy your product, but it creates an opportunity for another seller to knock off your product. Be sure to track inventory levels (inventory on hand + FC transfer) daily, as this will help you project how much inventory you will need in the weeks to come. With this, be sure to factor in time for shipping and processing of FBA shipments.
CUSTOMER SATISFACTION
Be sure to keep an eye on the ratings and reviews you receive for your product. This is important as these ratings and reviews are visible to potential customers, and heavily influence their decision to buy or skip on your product. Be sure to respond to negative reviews at least once a week, and submit tickets to have fake, negative reviews taken down (assuming they violate Amazon’s terms and conditions). If you are struggling to gather positive reviews, consider enrolling in Amazon’s VINE program.
If you are already familiar with the above, and are still struggling with your Amazon page, then Helm & Stern Branding is here to help. The above is merely an overview of things to keep in mind when selling on Amazon, but we hope it helps you gain a deeper understanding on how to gauge your Amazon performance!