Success on Amazon requires more than just listing products and hoping for the best. To thrive on this competitive platform, sellers must constantly monitor and optimize their performance. This is where an Amazon agency can make a significant difference. These agencies bring expertise and tools to track key performance indicators (KPIs) crucial for measuring and improving your Amazon business.

Sales performance metrics

Sales are at the heart of any e-commerce business, which is no different for Amazon sellers. A competent full-service Amazon agency will closely monitor various sales-related KPIs to gauge your overall performance and identify areas for improvement.

• Total sales– This fundamental metric clearly shows your revenue generation over time. Your agency should track daily, weekly, and monthly sales trends to identify patterns and seasonality.
• Units sold – Alongside total sales, the number of units sold is crucial for understanding product popularity and inventory needs.
• Average order value (AOV) – This metric helps assess customer purchasing behaviour and can inform pricing and bundling strategies.
• A best-selling product – Identifying your top performers allows for focused optimization efforts and informs inventory management decisions.

Profitability indicators

While sales are significant, profitability accurately measures a sustainable Amazon business. Your full-service Amazon agency should be adept at tracking and analyzing these critical financial KPIs:

• Gross margin – This metric helps understand each product’s profitability after accounting for the cost of goods sold.
• Return on ad spend (ROAS) – For sellers using Amazon’s advertising platforms, ROAS is crucial for evaluating the effectiveness of ad campaigns.
• Fulfillment costs – Whether using Fulfillment by Amazon (FBA) or handling shipping you, understanding these costs is vital for pricing strategies.
• Refund rate – A high refund rate can significantly impact profitability and may indicate issues with product quality or listing accuracy.

Visibility and traffic metrics

Success on Amazon largely depends on how easily customers can find your products. A full-service Amazon agency should be tracking these visibility-related KPIs.

• Organic search ranking – Your position in Amazon’s search results for relevant keyword directly impacts your visibility to potential customers.
• Click-through rate (CTR) – This metric indicates how compelling your product listings are to shoppers who see them in search results.
• Session count – The number of visits to your product pages provides insight into the effectiveness of your marketing efforts and listing optimization.
• Page views per session – This metric can help identify which products generate the most interest among shoppers.

Conversion rate optimization

Once customers find your products, converting that interest into sales is the next crucial step. Your Amazon agency should be focusing on these conversion-related KPIs:

• Overall conversion rate – This key metric shows the percentage of page visitors who purchase.
• Add to cart rate – Even if a visitor doesn’t immediately purchase, adding a product to their cart is a positive sign of interest.
• Buy box percentage – For products with multiple sellers, winning the buy box is crucial for maximizing sales opportunities.

Full service Amazon Agency brings invaluable expertise in tracking and analyzing these crucial KPIs. By leveraging data-driven insights, these professionals can help you make informed decisions to optimize your Amazon business. From improving product visibility and conversion rates to enhancing customer satisfaction and managing inventory effectively, the right agency can be a game-changer for your e-commerce success.

It’s important to note that while these KPIs provide a comprehensive view of your Amazon business, the specific metrics you focus on may vary depending on your unique goals and challenges. A skilled full-service Amazon agency will work closely with you to identify the most relevant KPIs for your business and develop strategies to improve them over time.