{"id":12926,"date":"2019-07-22T10:07:31","date_gmt":"2019-07-22T09:07:31","guid":{"rendered":"http:\/\/www.repricerexpress.com\/?p=12926"},"modified":"2020-09-24T12:23:42","modified_gmt":"2020-09-24T11:23:42","slug":"amazon-seller-metrics","status":"publish","type":"post","link":"https:\/\/www.repricerexpress.com\/amazon-seller-metrics\/","title":{"rendered":"The Amazon Seller Metrics That Matter Most"},"content":{"rendered":"<p><em>Guest post by Brooklin from OrderMetrics<\/em><\/p>\n<p><strong>Amazon isn\u2019t going anywhere, and will most likely only become an even bigger part of ecommerce in the United States. This leaves many ecommerce brands asking <a href=\"https:\/\/ordermetrics.com\/blog\/when-to-sell-on-amazon-vs-your-own-store.html\" target=\"_blank\" rel=\"noopener noreferrer\">whether they should sell on Amazon or their own storefront<\/a>.\u00a0<\/strong><\/p>\n<p>Thankfully, it\u2019s not an either-or question. ecommerce brands will sell on both their own storefront and the Amazon platform. The former allows for more control over everything from listings to marketing, while the latter lets brands gain a huge amount of exposure.<\/p>\n<p>But this isn\u2019t a post about the merits of Amazon. It\u2019s a post about tracking your metrics.<\/p>\n<p>Whether you sell solely on Amazon or across multiple channels, keeping track of your metrics is critical for long term success. How else will you know what\u2019s working, what\u2019s not and what ultimately drives your profitability?<\/p>\n<p><strong>\u201cEvery ecommerce seller knows the rule \u2014 utilize your data to increase sales,\u201d<\/strong> writes Sellbrite co-founder Michael Ugino. \u201cThough everyone may have heard this rule, not everyone knows how to use data to increase their revenue. With so many metrics to track, it can be difficult to know which ones to focus on and improve.\u201d<\/p>\n<p>Amazon seller metrics will give you insight into your <a href=\"http:\/\/www.repricerexpress.com\/amazon-account-health\/\">Amazon account health<\/a> including everything from product pricing, marketing effectiveness, customer satisfaction and more. But what are the most important metrics to track?<\/p>\n<h2>1. Product Ranking<\/h2>\n<p>When people land on Amazon, they are there to shop \u2014 and most take advantage of Amazon\u2019s robust functionality. <a href=\"https:\/\/marketingland.com\/85-prime-members-say-visit-amazon-least-week-nearly-13-daily-users-231866\" target=\"_blank\" rel=\"noopener noreferrer\">75% of Amazon customers<\/a> utilise Amazon\u2019s search box \u2014 though 40% don\u2019t scroll beyond the first page.<\/p>\n<p>This means you need to focus on your products\u2019 ranking so that you land on that first page of search results. Aim for Best Seller ranking for best results.<\/p>\n<p>The <a href=\"http:\/\/www.repricerexpress.com\/amazon-best-sellers-rank\/\">Best Seller rank<\/a> is calculated by sales volume, not seller reviews or customer feedback. They are also updated hourly, so get selling!<\/p>\n<p>If you see a lot of traffic to your Amazon products but a low conversion rate, it may be worth exploring your <a href=\"http:\/\/www.repricerexpress.com\/pricing-strategies-for-amazon\/\">pricing strategy<\/a>. With product comparison so straightforward on the Amazon platform, a price differential of just a few dollars could make a huge difference to reaching that Best Seller ranking.<\/p>\n<h2>2. Seller Rating<\/h2>\n<p>Amazon\u2019s Seller Rating puts a more objective number to your performance as a seller by combining metrics from customer feedback, fulfilment and more.<\/p>\n<p>According to <a href=\"https:\/\/www.feedbackexpress.com\/amazon-seller-rating\/\" target=\"_blank\" rel=\"noopener noreferrer\">FeedbackExpress<\/a>, the Seller Rating is a score between 0-100 and includes six major metrics.<\/p>\n<ul>\n<li>Shipping time<\/li>\n<li>Order cancellations<\/li>\n<li>Chargebacks<\/li>\n<li>Customer inquiries<\/li>\n<li>Customer reviews<\/li>\n<li><a href=\"https:\/\/www.amazon.com\/gp\/help\/customer\/display.html?nodeId=537868\" target=\"_blank\" rel=\"noopener noreferrer\">A-to-Z Guarantee<\/a> claims<\/li>\n<\/ul>\n<p>Keeping track of your Seller Rating will help you keep a pulse on the big picture and give you a foundation to actively seek out ways to improve.<\/p>\n<h2>3. Unit Session Percentage Rate<\/h2>\n<p>This is simply Amazon\u2019s lingo for conversion rate on their platform. According to <a href=\"https:\/\/www.digitalcommerce360.com\/2017\/07\/14\/amazons-prime-day-conversion-rate-traffic-transactions-surge\/\" target=\"_blank\" rel=\"noopener noreferrer\">Digital Commerce 360<\/a>, the <strong>average unit session percentage rate on Amazon is 12.3%<\/strong>.<\/p>\n<p>Similar to conversion rate, the unit session percentage rate is calculated by dividing the number of units ordered by the number of total sessions. This number could be low because of low sales or low traffic \u2014 take a closer look at both the units ordered and your sessions to determine how to improve this version of conversion.<\/p>\n<h2>4. Units Ordered<\/h2>\n<p>While there\u2019s no objective benchmark to run a comparison for units ordered, looking at how many units are ordered on a daily, weekly and monthly basis is a great way to see how effective your Amazon presence is.<\/p>\n<p>This is an even better metric than your total orders, since many Amazon customers will purchase multiple units in a single order. The average Amazon order holds just over two products, according to analysis from Jumpshot.<\/p>\n<p>The logic of increasing multi-unit orders is sound when it comes to profitability. \u201c When a seller processes and ships an order with two units, its overall variable expenses are generally much less than if it had sold just one,\u201d writes <a href=\"https:\/\/www.practicalecommerce.com\/4-Ways-to-Increase-Multi-unit-Sales\" target=\"_blank\" rel=\"noopener noreferrer\">Stephen Bulger<\/a> at Practical Ecommerce. \u201cNot only did the total net income more than double, the per unit net income also increased.\u201d<\/p>\n<h2>5. Order Defect Rate<\/h2>\n<p>The Order Defect Rate doubles up with your Seller Rating with a more specific focus on the order itself. Was it defective or successful? An order is considered defective by Amazon if the customer:<\/p>\n<ul>\n<li>Makes an A-to-Z Guarantee claim,<\/li>\n<li>Makes a chargeback, or<\/li>\n<li>Leaves negative feedback (1- or 2-stars).<\/li>\n<\/ul>\n<p>With a defect rate of 1% or more, Amazon may issue a warning or suspend your seller account.<\/p>\n<h2>6. Inventory Performance<\/h2>\n<p>One of the newest metrics from Amazon is its\u2019 <a href=\"http:\/\/www.repricerexpress.com\/amazon-inventory-performance-index\/\">Inventory Performance Index<\/a>. This is particularly important for FBA sellers, who rely on Amazon storage. Amazon will limit storage for sellers with a low Inventory Performance Index.<\/p>\n<p>While Amazon has not announced how they calculate the score, the platform has given three suggestions for increasing the score (which ranges from 0-1,000): reduce excess inventory, update what you keep in stock, and avoid stranded inventory.<\/p>\n<h2>7. Fulfilment Performance<\/h2>\n<p>Fulfilment performance is a relatively new metric from Amazon designed to keep sellers accountable with how they fulfil orders for customers on the platform.<\/p>\n<p>While seller rating has more to do with customer experience, fulfilment performance deals with hard numbers regarding pre-fulfilment cancellation, late shipping and order defects. <a href=\"https:\/\/sellercentral.amazon.com\/gp\/help\/external\/200370550?language=en-US&amp;ref=mpbc_12880481_cont_200370550\" target=\"_blank\" rel=\"noopener noreferrer\">Amazon recommends<\/a> that all Amazon sellers should be \u201cworking toward achieving and maintaining a level of customer service\u201d that meets their standards for fulfilment performance. These numbers are:<\/p>\n<ul>\n<li>Less than 1 per cent order defect rate<\/li>\n<li>Less than 2.5 per cent pre-fulfilment cancel rate<\/li>\n<li>Less than 4 per cent late shipment rate<\/li>\n<\/ul>\n<h2>8. Fees<\/h2>\n<p>Using Amazon\u2019s powerful and far-reaching platform comes with a cost. Tracking your <a href=\"https:\/\/help.ordermetrics.com\/articles\/2732732-does-ordermetrics-track-fba-fees-and-amazon-seller-fees\">fees relative to your revenue<\/a> will help you determine whether selling on the platform is worth it.<\/p>\n<p>These include <a href=\"http:\/\/www.repricerexpress.com\/amazon-seller-fees\/\">seller fees<\/a> (to be listed as an Amazon seller) and <a href=\"http:\/\/www.repricerexpress.com\/amazon-fba-fees\/\">fulfilment fees<\/a> (to utilize the FBA program).<\/p>\n<p>While fees aren\u2019t exactly a metric, they are a critical hard number for determining how profitable each order, customer and product is for your brand.<\/p>\n<h2>9. Invoice Defect Rate (New for 2020)<\/h2>\n<p>The Invoice Defect Rate (IDR) is all orders from Amazon Business customers for which an invoice was not uploaded within one business day after shipment as a percentage of total orders from Amazon Business customers. Amazon Business customers expect invoices for tax and <a href=\"http:\/\/www.repricerexpress.com\/best-accounting-software-amazon-sellers\/\">accounting<\/a> purposes.<\/p>\n<p>Sellers are expected to maintain an IDR under 5% in order to provide a good customer experience, however, there is no penalty for not meeting the performance target <strong>at the moment.<\/strong><\/p>\n<h2>Automate Your Amazon Prices 24\/7<\/h2>\n<p>You have enough things to worry about with your Amazon business so let RepricerExpress take care of managing your pricing to ensure you&#8217;re competitive 24\/7 even when you&#8217;re asleep. A good repricer should pay for itself in extra sales, increased profits and Buy Box percentage. Check out our <a href=\"https:\/\/dashboard.repricer.com\/register\/do\/repricer?utm_source=rex-blog&amp;utm_medium=referral&amp;utm_campaign=rex-to-repricer-registration&amp;utm_activity=take-action\">FREE 15-day trial<\/a> and join the repricing revolution today! No credit card needed.<\/p>\n<p><a href=\"https:\/\/dashboard.repricer.com\/register\/do\/repricer?utm_source=rex-blog&amp;utm_medium=referral&amp;utm_campaign=rex-to-repricer-registration&amp;utm_activity=take-action\"><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/www.repricerexpress.com\/wp-content\/uploads\/2017\/10\/amazon-repricer-free-14-day-trial-768x330.png\" alt=\"Free trial\" width=\"1024\" height=\"440\" \/><\/a><\/p>\n<p><strong>Related:<\/strong> <a class=\"LinkSuggestion__Link-sc-1mdih4x-2 jZPuuT\" href=\"http:\/\/www.repricerexpress.com\/rank-your-products-higher-on-amazon\/\" target=\"_blank\" rel=\"noopener noreferrer\">21 Ways to Rank Your Products Higher on Amazon<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Guest post by Brooklin from OrderMetrics Amazon isn\u2019t going anywhere, and will most likely only become an even bigger part of ecommerce in the United States. This leaves many ecommerce brands asking whether they should sell on Amazon or their own storefront.\u00a0 Thankfully, it\u2019s not an either-or question. ecommerce brands will sell on both their [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":12927,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,7,8,9],"tags":[],"class_list":["post-12926","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-amazon","category-fba","category-news","category-tips"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Amazon Seller Metrics That Matter Most<\/title>\n<meta name=\"description\" content=\"Amazon Seller metrics will give you insight into everything from product pricing, marketing effectiveness, customer satisfaction and more.\" \/>\n<meta name=\"robots\" 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