What Metrics Does an Amazon.com Seller Track?
Selling products on Amazon.com involves managing various aspects of your business, from inventory and pricing to customer feedback and sales performance. To effectively monitor and optimize your performance as an Amazon seller, you need to track a range of key metrics. Here are some important metrics that Amazon.com sellers typically monitor:
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Sales Performance Metrics:
- Total Sales: The overall revenue generated from selling products on Amazon.com.
- Sales by Product: Sales performance broken down by individual products or product categories.
- Sales Velocity: The rate at which your products are selling over a specific period, indicating demand and popularity.
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Inventory Metrics:
- Inventory Levels: Monitoring the quantity of stock available for each product to ensure adequate supply and prevent stockouts.
- Inventory Turnover: The rate at which inventory is sold and replaced within a given time frame, indicating efficiency in inventory management.
- Days of Inventory: The number of days it takes to sell out existing inventory, helping to optimize stocking levels and minimize storage costs.
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Pricing Metrics:
- Price Competitiveness: Comparing your product prices with competitors to ensure competitiveness while maximizing profitability.
- Price Elasticity: Understanding how changes in price affect sales volume and revenue.
- Price History: Tracking historical pricing trends to identify pricing strategies that drive sales without sacrificing profit margins.
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Performance Metrics:
- Order Defect Rate (ODR): The percentage of orders with defects such as negative feedback, A-to-z Guarantee claims, or credit card chargebacks. Amazon monitors ODR to maintain seller performance standards.
- Late Shipment Rate: The percentage of orders that are shipped after the expected ship date. High late shipment rates can result in penalties or account suspension.
- Cancellation Rate: The percentage of orders canceled by the seller before shipment. Excessive cancellations can negatively impact seller metrics.
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Customer Feedback Metrics:
- Seller Feedback Rating: The average rating received from customers based on their buying experience. Positive feedback helps build trust and credibility.
- Product Reviews: The number and quality of product reviews received, which can influence purchasing decisions and product visibility.
- Customer Satisfaction: Monitoring customer satisfaction through feedback and reviews to identify areas for improvement in product quality or service.
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Amazon Fees and Expenses:
- Selling Fees: Amazon's fees for listing products, referral fees on sales, and fulfillment fees (if using Fulfillment by Amazon).
- Advertising Costs: Expenses related to advertising products on Amazon, including pay-per-click (PPC) campaigns and sponsored product ads.
- Fulfillment Costs: Expenses associated with storing inventory, packaging, and shipping orders, especially if using Fulfillment by Amazon (FBA).
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Traffic and Conversion Metrics:
- Traffic Sources: Understanding where traffic to your product listings is coming from (e.g., organic search, paid ads, external sources).
- Conversion Rate: The percentage of visitors to your product listings who make a purchase, indicating the effectiveness of your product listings and marketing efforts.
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Keyword and Search Ranking Metrics:
- Keyword Ranking: Monitoring the ranking of your product listings for relevant keywords in Amazon search results.
- Search Term Performance: Analyzing the performance of keywords and search terms that drive traffic and sales to your listings.
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