Amazon Performance Metrics
A Key to Optimising Your Amazon Business
Amazon performance metrics are critical for measuring and improving the success of your Amazon business. They provide you with vital information about sales figures, customer satisfaction, and the overall health of your Amazon business. But what are the most important metrics you should pay attention to?
Core Performance Metrics: The Most Important Indicators
Sales Figures: The simplest and most critical metric, sales figures, show you how many units of a particular product have been sold. This metric gives you an overview of the popularity and also the profitability of your products.
Conversion Rate: The conversion rate indicates how many visitors view your product page and how many actually make a purchase. A high conversion rate signifies that your product page is appealing and encourages customers to buy.
Customer Satisfaction: Amazon uses metrics such as product reviews, seller feedback, and order defect rate (ODR) to measure customer satisfaction. High customer satisfaction can help your product rank higher in Amazon’s search results and appear in the rankings on the first page.
Advanced Performance Metrics
Session Percentage: This measure calculates the percentage of total sessions on Amazon that take place on your product pages. A higher session percentage leads to higher visibility of your products.
Click-Through Rate (CTR): The click-through rate measures the ratio between the number of people who see your ad and the number who click on it. A high click-through rate indicates that your ads are engaging and relevant.
Some More Specific Performance Metrics
Order Defect Rate (ODR): The ODR, expressed as a percentage, indicates how many of the orders received negative reviews.
Cancellation Rate: The cancellation rate measures the number of orders cancelled by the seller before the shipping confirmation.
Late Delivery Rate: This metric refers to orders for which the shipping confirmation was made after the promised shipping date.
Valid Tracking Rate: This metric calculates the ratio between the packages sent with valid tracking numbers and the total number of all dispatched and confirmed packages.
On-Time Delivery: The on-time delivery value indicates the packages that the customer received by the expected delivery date.
Return Dissatisfaction Rate (RDR): The RDR reflects the satisfaction of customers with the handling of returns.
Customer Service Dissatisfaction Rate (CSDR): The CSDR measures customer satisfaction with responses to buyer messages.
Practical Tips for Optimising Your Performance Metrics
Continuous monitoring and optimisation of your performance metrics are vital for success on Amazon. Experiment with different strategies and adjust them based on the results of your metrics. For example, try improving your product images and descriptions, testing different prices, or running different ad campaigns with varied targeting.
Each metric is a part of the whole picture and should be considered in the context of your overall business strategy. By analysing all metrics and understanding their interrelationships, you can make informed and data-driven decisions to optimise and grow your business.