Metrics for Amazon FBA Sellers – I recently uploaded a fantastic video on the “Sourcing Monster” channel that delves deep into the world of Metrics for Amazon FBA Sellers. I thought it would be beneficial to share my insights and a summary of the video with you all. So, let’s dive right in!
In the dynamic world of e-commerce, successful Amazon FBA (Fulfillment by Amazon) sellers often distinguish themselves through a meticulous understanding and strategic application of Key Performance Indicators (KPIs). Navigating through the intricate marketplace requires more than just a stellar product; it demands a mastery over the myriad of metrics that underscore every step of the selling journey.
The 20 Metrics
- The video starts with an analogy of how navigating Amazon can sometimes feel like a maze. But fear not, as the video promises to be our ultimate GPS, highlighting the top 20 KPIs that will keep us on the right path.
- I have also mentioned my Amazon FBA masterclass and it is available at special pricing. Plus, there are live weekly Q&A sessions in which you can interact directly with me.
- Organic Sales Percentage: This KPI helps track SEO effectiveness and keyword strength. It’s calculated by taking total sales minus PPC sales, divided by total sales, multiplied by 100.
- Average Purchase Price (APP): It gives the average amount customers spend on your product.
- Sales Velocity: It’s crucial to maintain a high sales velocity as Amazon rewards listings with better rankings for it.
- Sales per Day: Useful for inventory planning.
- ACoS, RoAS, and TACoS: These KPIs help understand ad spending and its profitability.
- CTR (Click-Through Rate): Measures the effectiveness of your ads in getting clicks.
- CPC (Cost Per Click): Helps understand the competitiveness of a keyword.
- CVR (Conversion Rate): Percentage of people who purchase after seeing your ad.
- CPA (Cost Per Action): What is the cost per sale?
- Discount Redemption Rate: Tracks the effectiveness of your discounts.
- Stock Turn Rate: Indicates efficient inventory management.
- Out-of-Stock Rate: Ideally, this should be 0%. It tracks the percentage of time a product is out of stock.
- Inventory Holding Cost: Tells the cost of storing unsold inventory.
- Customer Acquisition Cost (CAC): Measures the cost to acquire a new customer.
- Customer Lifetime Value: Predicts the net profit from the entire future relationship with a customer.
- Net Promoter Score (NPS): Gauges customer satisfaction and loyalty.
Return and Refund KPIs:
- Return Rate: Tracks the percentage of sold items that customers return.
- Refund Rate: Tracks the percentage of items that customers didn’t just replace but also returned.
- Average Time to Return & Refund: Measures the average time taken for returns and refunds.
The video concludes by emphasizing the importance of the Metrics for Amazon FBA sellers and e-commerce platforms in general. I also invite viewers to join our Facebook group for a more in-depth discussion.
I hope you found this blog post insightful. Let me know your thoughts, and if there are any other topics you’d like me to cover. Until next time, keep selling and stay awesome!