Using Statistics To Expand Your Amazon Business
Planning and predicting the expansion of your Amazon business depends on knowing the stats. Knowing the stats has everything to do with knowing which stats matter most, which in turn comes down to an understanding of the things that most affect your business’s growth.
This can be fairly simple, and yet quite often doesn’t get applied to its fullest effect.
Information overload is a very real possibility in the management of any business. There are many things to monitor, and while awareness of each aspect of your company is important, it’s possible to lose sight of the key indicators and get bogged down in less important minutia.
Tools like ManageByStats can help. MBS is focused on statistical oversight and analysis in the world of Amazon. As you add products, marketplaces and, even, additional Amazon seller accounts, maintaining the altitude needed in order to effectively monitor and know, clearly, how each aspect of your enterprise is doing becomes more and more vital.
From years of experience with Amazon sellers, MBS has also learned some of the more important metrics to monitor.
These are also known as KPIs, or Key Performance Indicators. Metrics, or stats, which tend to encompass a larger sphere of importance, usually impacting a greater portion of the overall business.
We define them this way:
● Statistic: any gauge against which you can measure the trend of the specified area for evaluation.
● KPI: Key Performance Indicator; a stat which is set apart as a metric of overall business performance.
Unlike what you might call a sub-statistic, or one that monitors activities that support larger actions, a Key Performance Indicator is a representation of the larger action. A value that demonstrates how effectively your company is achieving its key business objectives.
Organizations use statistics at multiple levels to evaluate their success at reaching targets. The idea behind monitoring a handful of larger, more comprehensive stats, is to give you the big-picture view of exactly how your Amazon business is doing.
What Do We Recommend?
From years of evaluation and working with thousands of Amazon sellers, we’ve isolated four (4) of the most effective, overall stats, and present these here as the best indicators of how your Amazon business is performing.
The key statistics we recommend monitoring are:
Sessions is key as it shows the number of visits to your listing, which is an indicator of traffic and interest. Paired with conversion percentage this provides a good indication of the overall effectiveness of your listing.
Conversion Percentage shows how many visitors convert to a sale.
Together those two stats tell you how well your listings are performing -- a vital component of growth on Amazon.
Profit often gets overlooked in favour of revenue, but a high revenue with no profit does not a successful company make. Being able to apply costs and additional expenses to your revenue in order to see profits is the best indication of how well you’re doing.
Average Review gives you a strong indication of how each product is doing in terms of customer response, which in turn tells you how your products are being received -- and what may need to be done to make them more valuable to potential buyers.
Watching these four metrics, combined, in our experience, provides the best look at the overall health of your Amazon business.
Managing By Statistics
Statistical analysis and action is a fairly well-mapped subject. In order to reinforce that wealth of knowledge, let us make two points.
First, the importance of selecting the correct date range for evaluation. When judging trends for any statistic, using a date range that makes sense for that particular metric is key. For example, say you’re looking at sales for the whole company. In that case, selecting a date range of 4 or 5 days may not give you the best indication of the overall health of that stat. You wouldn’t want to make major changes based on a trend for that short a period of time.
A bigger part of this is taking action in advance. In the same example, if you’re looking at the correct range you can spot a developing trend before it becomes a problem. Catching a down trending stat in advance gives you a chance to act before it becomes a crash.
Second point we’d like to make is one that isn’t usually taken into consideration. And that’s this:
Apply the same evaluation to up trends.
If a stat is doing well, especially really well, that’s actually the time to take a hard look. Do an investigation as to why it’s doing so well; find the reason or reasons and strengthen those things. Investigations and action are not just for when a stat is going down.
One of your more vital actions as an Amazon seller is being aware of the state of your Amazon business. Knowing the statistical health is the first step to knowing driving expansion.
ManageByStats provides tools to help with exactly that. We work with thousands of Amazon sellers every day to help them make their businesses a roaring success.
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