The six key Amazon Seller metrics that will boost your sales
There’s a well-used phrase for business success that says “Use your data to increase sales” - but what does it really mean?
Tracking your metrics can offer telling insights into how your business is performing, and no platform offers more potential to do this than Amazon.
Amazon Seller metrics can give you information on everything from product pricing and marketing effectiveness to customer satisfaction and more.
But it can be a minefield to navigate if you are new to Amazon because there is so much data available - so what is the best to focus on?
Thompson and Holt’s managing partner Craig Gedey has extensive experience of working with Amazon’s systems and has identified the six key metrics to focus on when looking to improve the performance of your business.
1. Product ranking
“Did you know that 40 percent of Amazon customers do not scroll beyond the first page of a search?” Thompson and Holt’s Gedey asks. “Because of that it is vital to focus on your products’ ranking and do everything possible to land on the first page of search results. The Best Seller rank is worked out purely on sales volume and is updated hourly, so the more you sell the further up that list your product will rise. As part of this it’s important to keep an eye on your pricing compared to rival sellers, because even a few pounds or dollars can make a huge difference when you’re trying to climb the Best Seller rankings.”
2. Seller rating
“This isn’t as straight forward as the product ranking because Amazon Seller Ratings are naturally more objective and in part based on opinion,” Gedey explains. “But that doesn’t mean that you shouldn’t do everything possible to make sure your Seller Ratings is as high as it can be. The Seller rating is a score between 0-100 and is based on six main metrics - shipping time, order cancellations, chargebacks, customer reviews, customer inquiries and A-to-Z guarantee claims. Keeping a proper track of this gives you an overall picture of how your Amazon business is performing and allows you to identify ways to improvement, and therefore increase your Seller Rating.”
3. Fulfilment Performance
“This is a relatively new metric introduced by Amazon that is designed to keep Sellers accountable for how they fulfil orders,” Thompson and Holt’s Gedey says. “While Seller Rating has more to do with customer experience, fulfilment performance deals with basic numbers surrounding pre-fulfilment cancellation, late shipping and order defects. Amazon recommends that all Sellers should be ‘working toward achieving and maintaining a level of customer service’ that meets three key targets set by the company itself. They are: having a less than 1% order defect rate, having less than 2.5% pre-fulfilment cancel rate, and less than 4% late shipment rate. Keep your eye on your metrics to ensure you are falling within these guidelines.”
4. Order Defect Rate
“This works alongside your Seller Rating but has a specific focus on whether the order was successful or not,” Gedey says. “There are three areas that Amazon looks at to decide if an order is defective - if the customer makes an A-to-Z Guarantee claim, makes a chargeback, or leaves negative feedback, which is rated as being one or two stars. You need to work at keeping your Amazon Order Defect Rate as low as possible.”
5. Units ordered
“This is a straight forward method of tracking how your Amazon account is doing,” Thompson and Holt’s Gedey outlines. “It’s also an even better metric than total orders, because many Amazon customers make order multiple units in a single order. And in those cases, processing and shopping more than one unit in an order is more cost effective, so not only are you multiplying your income, you are making bigger margins on each individual unit. Amazon analysis shows that the average order is just over two products, so monitoring the total number of units sold is very important.”
“Using Amazon’s selling platform is great - but it isn’t free,” Gedey concludes. “You’re paying them for a service, and you should keep track of your fees alongside your revenue to assess whether using Amazon is worth it. Fees are often something that are overlooked by Sellers but they’re crucial in assessing how profitable each order your product has. Work out the margins to discover whether using Amazon is effective for your business.”
The impact of poor Amazon Seller metrics could trigger a suspension email which can be a daunting process if you are unfamiliar with it, but Thompson and Holt has vast experience in compiling successful Plan of Actions, so get in touch if you need to either avoid suspension or get back online as quickly as possible. If your situation requires immediate assistance please follow this link and speak to an Amazon Appeal Expert or alternately visit Thompson and Holt.