Most important metrics for amazon sellers
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The one thing that differentiates the best sellers from the good ones is that the former analyze metrics that are important for the growth of their business and constantly improve and make changes on the basis of that data. However it is really important to focus on the right metrics.
Did you know that 75% amazon users use the search bar to find products and out of that 40% do not go beyond the first page. This means that it is extremely important to track your product ranking and if it is not on the first page.
It is really important to track and focus on improving the rating of a seller. Seller rating is determined by amazon on the basis of the below factors:
- Customer service
- Order cancellation rate
- Delivery time
- A-Z claims
3: Session to conversion rate:
This is the number of orders divided by the number of sessions. This gives clarity on the conversion rate of your product.
4: Number of orders:
This is one of the most important metric that a seller should monitor. One order can have multiple units so a seller so a seller can analyze on a unit level.
5: Defect rate:
This is a very important metric to focus on since if this is more than 1%, Amazon can even suspend the seller account.
6: Order overdue rate:
This is the number of orders that a seller has not delivered even after the delivery date has passed.
7: Inventory health:
This metric shows if the sellers product is in stock.
8: Best sellers:
This can help a seller identify the best and worst selling products. This way a seller can identify which products need more attention and the seller can even make decisions regarding inventory and marketing using this. Do check out DataOne. You can see your best selling SKUs, best selling days, marketplace and country wise sales distribution, inventory health and much more using DataOne.
9: Profit per product:
Everything done by a seller is to ensure that the business is profitable. So identifying the profit per product and overall profit after calculating all costs including shipping costs, taxes, ad costs and other costs is the north star final metric that makes or breaks a business.
10: Review rate:
Human beings are social animals. We need assurance about most of the things in life. The same goes for shopping. Shoppers will see if others have bought the same product and what are they saying about the product. So it is very important to get maximum positive reviews for your orders.
As per research, the % of reviews per order is less than 2%. You can check out FiveStar, using which you can automatically request reviews for every order placed as per amazon’s policy without you having to manually send it. This in turn can help you get more reviews. It also provides alerts for negative reviews.
“Data is king” is something that is relevant to amazon sellers too. Analyzing the above metrics and making changes accordingly can help scale businesses massively.
P.S. Happy Selling!