The key KPIs for greater success on Amazon
Achieving success on Amazon is anything but easy. Therefore, it is even more important to keep an eye on your numbers. Key Performance Indicators (KPIs) provide insights into product and sales development, as well as which levers still need to be adjusted to improve your business results. Keeping track of all these different KPIs can become challenging, but we’ve got your back! In this article, we will show you how to leverage KPIs to make your Amazon business more successful!
Which KPIs are important and where can you find them?
As an Amazon seller, you can gain insight into these metrics through the Reports > Statistics & Reports section in your Amazon Seller Central account. In the left menu, you will now see the section “By ASIN,” and below that is the relevant report Detail Page Sales and Traffic.
We always recommend this dashboard for detailed evaluations. Before we take a closer look at the relevant KPIs, it is important to select the right time filter. For your annual planning, it makes sense to choose longer periods to identify seasonalities and trends, for example. For your daily business, “Period over Period” comparisons are particularly interesting. For instance, the development of the metrics compared to the previous week or the same period last year.
We categorize the relevant KPIs into 3 categories:
Traffic KPIs: “Sessions and Page Views”
The traffic metrics “Sessions” and “Page Views” indicate the number of Amazon users who have viewed your product. You should regularly monitor these to improve your traffic and direct more customers to your Amazon listings. As you can see, the number of page views is higher than the number of sessions. So, make sure to ask yourself the question: “How many potential customers have clicked on my product pages?” To determine this accurately, you need to understand the difference between “Sessions” and “Page Views.”
In short: Every click by a customer on your product page is a page view. If a customer clicks on your listing multiple times within 24 hours, it counts as only one session but as multiple page views.
Good to know: Recently, Amazon Seller Central expanded the KPIs “Sessions” and “Page Views” by allowing you to distinguish between traffic generated by the mobile app and traffic generated by the browser. As a result, the total sessions and page views have increased, as Seller Central previously only analyzed browser traffic.
Conversion KPI: “Units per Session in Percentage”
“Units per Session in Percentage” refers to the conversion rate. The conversion rate indicates the proportion of customers who visited your product and then actually purchased it. It is an effective tool for measuring the success of listings.
The conversion rate is influenced by many factors. Examples include the Buy Box rate and content quality, as the better the information is for the customer, the easier it is for them to make their purchasing decision.
Revenue KPIs: “Revenue from Ordered Products”
As the name suggests, the KPI “Revenue from Ordered Products” provides us with information about our beloved revenue. Based on the revenue, you can set up an A-B-C analysis to focus on the right products.
Phew… Good. Now we have checked our metrics. Let’s get to the implementation!
How can you use these KPIs to optimize your Amazon business?
To illustrate this more clearly, we have created a few case studies.
Case Study 1:
Status Quo: The company has a low conversion rate, even though it can generate high traffic on its listings.
Interpretation: Your prices are average, but the competition is high, and you have a low Buy Box rate.
The Buy Box is calculated based on various factors – the biggest influence is the price, meaning the lowest offer wins the Buy Box. However, other factors also come into play, such as whether the product is available on Prime. The significant advantage of Prime is that the seller can win the Buy Box despite competition at the same price.
Solution: Implement Prime through Amazon FBA or Seller Fulfilled Prime to win the Buy Box, as this is crucial for your revenue. According to Amazon, 90% of sales go to the seller in the Buy Box.
Case Study 2:
Status Quo: The company achieves average revenue with average traffic but still has a poor conversion rate.
Interpretation: The content quality is improvable, as it stands at 60%. Additionally, the relevant keywords are missing.
Solution: It is best to upload 6-7 product images that are targeted at a specific audience, with explanatory and meaningful visuals. Additionally, we advocate for A+ Content that helps customers emotionally connect with the product and brand and tells a story. It should also be noted that using the right keywords plays a significant role. It is important to choose the 2-3 most important keywords that provide value to the customer and highlight the right product features.
Case Study 3:
Status Quo: The company generates little revenue and has low traffic on its product page, but it has a high conversion rate.
Interpretation: The content quality is very good, but traffic generation is poor, and the appropriate keywords are missing.
Solution: To improve traffic generation, it is important to identify the right keywords. Once a base keyword that accurately describes the product has been established, it is essential to analyze competitors’ keywords and find similar keywords. Additionally, targeted PPC campaigns can improve search rank to reach the ideal audience at every step of the sales funnel.
Conclusion
As you can see, KPIs are just as important for your business as flight instruments are for pilots. You can use them to anticipate turbulence and adjust strategies in a timely manner.
If you want to sit back and relax in business class and hire a pilot to take care of everything for you, we are here to help. Our team has over 30 years of Amazon experience, so we know exactly how much time managing an Amazon account takes. We offer comprehensive marketplace management and regularly create reports on business development, recommend specific optimization measures based on our analyses, and manage your marketing campaigns. We work hand in hand with the teams in your company. For more information, visit: https://www.faru.services/.
If we have piqued your interest, feel free to schedule an appointment with us: https://www.faru.services/schedule-a-call.
Image credits in the order of the images: © Andrey Popov – stock.adobe.com / © Screenshots @ Faru Services GmbH
