Don’t Be A Tool, Use Software for Amazon Analytics
Let us be straightforward. Do you want to be successful on Amazon? If so, you will need Amazon analytics. However, let’s see why you need really good data analytics software for your business.
The techniques that successful Amazon sellers who go on to earn six figures or even millions of dollars employ differ significantly from those used by average Amazon sellers. High-performing sellers use the best tools because they recognize the value of accurate information and how it can help them stand out from the competition.
Sellers who continuously make more intelligent, high-quality business judgments than their rivals will surely experience greater success.
In this article, we will deep dive into the benefits of Amazon analytics tools for Amazon sellers.
Why Do You Need Amazon Analytics?
Investing in one of these tools is critical once you are selling a certain amount of SKUs – most of our clients turn to our automation after selling 60 SKUs or more.
A small number of goods can still be manually analyzed. However, managing the data on your own gets challenging if you sell more than 60 products on Amazon.
Making choices for your Amazon business will be easier and more lucrative in the long run if you use Amazon seller analytics tools.
When you sell on Amazon, it’s critical to keep track of your performance. Your success depends on your ability to interpret your data. You need to be aware of what is lucrative and what is turning out to be a huge drain on your cash, as well as what products are working out fine and which ones are just warming the shelves.
You must take advantage of all accessible data as an eCommerce seller in order to boost your sales. Products and sellers’ rankings, unit session percentage rates, units ordered, order defect rates, inventory performance, fulfillment performance, fees, and invoice defect rates are just a few facts that may be of interest to you.
If you only have a few goods and have plenty of time to explore Seller Central, manually conducting Amazon analytics for your company could be effective. But if you want to scale and expand your Amazon business, you must invest in a strong Amazon seller analytics tool. One limitation is that using only Seller Central’s reporting capabilities may not be sufficient. There are methods to exploit the information that Amazon has about your sales in order to perform far more sophisticated analysis, which may subsequently result in more successful decisions.
Top 3 Benefits of Amazon Analytics Tools
#1: Plan Inventory
Planning your Amazon inventory involves understanding how much stock to have on hand at all times without incurring costly overstocking costs, as well as how much to ship to a fulfillment center and when to restock. Failure to do this correctly results in stockouts, decreased resupply limitations, tied-up capital, and depleted resources. Your company’s profitability on Amazon may suffer if you can’t deliver merchandise to your fulfillment center because of low restrictions.
When you don’t get rid of your extra inventory to increase your sell-through rate and create a place for top sellers, your restock limitations may be reduced. An increased sell-through rate signals to Amazon that your inventory management system is effective and that you can swiftly convert your product into cash. Therefore, it makes financial sense to provide you with a greater resupply limit in order to increase Amazon customer satisfaction and keep inventory moving through FBA warehouses rather than leaving it idle.
By giving you a precise picture of what you have on hand, the right analytics software assists you in managing your business successfully. Inventory systems can be created using a manual count and ledger system, a spreadsheet, or an automated digital solution.
#2: Calculate True Profits On Amazon
Any business that sells on Amazon has the potential to be very successful, but if you don’t track Amazon sales and fees carefully and persistently with the help of an Amazon analytics tool, you could not be aware of your real profit.
How can you create a real-time profit and loss report? There are several approaches:
- The average profit per unit is multiplied by the number of units sold. This is quick, but extremely inaccurate because of several aspects that you overlook.
- Asking your accountant is generally helpful but slow, and lacks pertinent analyses.
- Using spreadsheet software and Amazon Seller Central Reports is time-consuming and inaccurate.
- A tool that enables precise real-time profit and loss tracking with little effort.
Whatever method you choose, think about all costs you need to take into account in order to calculate your true profit.
The FBA fee is the standard amount that Amazon charges you when you ship products from “Fulfillment by Amazon” (FBA) facilities to consumers. Many sellers are unaware that the FBA charge listed in Seller Central’s “Manage Inventory” option is only an estimate. In reality, you can pay a different sum for each item that is shipped. Additionally, the FBA fees can alter suddenly, for instance, if Amazon staff uses bigger packaging to ship your goods.
Because they are dependent on the typical amount of the items you keep, Amazon storage fees are difficult to predict or even estimate. Naturally, since this volume changes over time, your storage fees will increase or decrease.
Returns are unavoidable in the selling industry. A return with Amazon FBA does not result in the cancellation of a sale when you are back at the beginning. On the other hand, a return is a complicated computation that, most of the time, results in a loss.
When a consumer returns an item to Amazon, they are given their entire product cost back right away. You must now record this sum as a loss with the current date (which cancels the profit previously made). Due to Amazon’s added refund cost and refusal to pay back the FBA fee it assessed during order processing, you really lose out. If the item turns out to be a dud, your loss might increase significantly.
Beware of FBA Errors
Amazon’s warehouses occasionally make mistakes, which might end up costing you money. If you catch a mistake in time, you can ask the Seller support to check it again and fix it if it hasn’t already been done. You may either stop losses from happening or get your money back with this method.
To make your life easier, use the Lost & Found tool by SellerLogic which automatically analyzes all FBA transactions and shows hidden reimbursement claims without exception.
Find out more about Amazon refunds here.
#3: Make Decisions Faster and More Efficiently
With the right Amazon analytics tool, you can generate better insights if you want to look for new business opportunities.
Why? Because such a tool or software allows you to combine data from multiple sources to get a clear view of each product and product category.
Moreover, increased efficiency is the result of a better understanding of the current situation and ongoing business. Get all necessary information in one place and see changes fast and react to them.
SellerLogic Amazon Analytics
Business Analytics is an Amazon analytics tool that allows you to track your profit at all times and make better decisions based on the data you received. Once you connect your Amazon account to the SellerLogic platform, you can make informed, data-driven decisions that drive growth, improve efficiency, and increase profitability.
How can SellerLogic Business Analytics help you?
Making decisions about individual products is not quite a walkover, as the volumes of data can quickly become overwhelming. The dashboard shows you all the relevant data at a glance. It allows you to import all your costs for each product and see which products you should use to achieve the desired margin and which you should get rid of as quickly as possible. This leads to higher efficiency in tracking your business transactions and makes you stay at the top of your game. The dashboard is divided into different areas, providing a detailed overview of your performance.
Here is how SellerLogic Business Analytics can help you in achieving your business goals.
Depicts complex data visually
The Business Analytics dashboard lets you see the most important Key Performance Indicators right away and visualizes the data in easy-to-understand charts.
You can see the profit & loss data for any date or a date range within 2 years back from the registration. It is possible to visualize your data on different levels:
The Group/Account filter allows you to view the data relevant to the following:
- All Amazon accounts you have at once
- Any Amazon account separately
- Groups of marketplaces you can create yourself
When using the Marketplace Selector, you can display data for one or multiple marketplaces at once. It is also possible to create groups of marketplaces according to your wishes and preferences.
The product filter allows you to see profit & loss data for 1 product at a time that you can choose by entering the product’s name, ASIN or SKU.
The data can be visualized for any date that goes back to 2 years from your registration in any currency you prefer.
Delivers your data in near real-time
Profitability and growth go hand-in-hand when it comes to success in business. The more control you have over your performance, the more sustainable your business is. Now this can become tricky if you have to spend your time gathering data from various sources in order to analyze where you stand.
Thanks to the advanced algorithm of SellerLogic’s Amazon analytics, your data is being updated constantly, giving you the opportunity to react to changes as fast as possible.
The KPI widget displays data, correspondent to to any Amazon account, marketplace or product for the following metrics:
- Product sales
- Net profit
Helps you define your profit killers
Knowing your cash cows is great but are you aware of the products that are draining your business? Profit can be difficult to measure since it is manually calculated when you first start selling a product. Consequently, it usually takes a while before you realize when your product becomes gradually unprofitable. This can and does cost you a great deal of money and time.
The Amazon analytics tool by SellerLogic helps you identify hidden profit drainers faster by providing you all the profit & loss information for every single product in near real-time.
Saves time with tracking costs
Calculating your true profit involves consideration of product costs that Amazon does not report. The more products you have, the more time and effort it takes to keep track of your data accuracy. Business Analytics allows you to import all your product costs easily and automate the import and export processes. Save your product costs in date range periods with no time gaps – just enter the start date.
If you are already using SellerLogic Repricer, you can save even more time when using Business Analytics since the information about “VAT”, “Costs of goods”, “Shipping costs” and “Other fees” will automatically be taken from the Repricer.
Other Amazon Analytics functionalities to look into
Another tool that can come in handy to further maximize your potential is a keyword optimizer. Optimizing a listing means that you include your keyword in your product listing title, bullet points or description. Such a tool can help you discover how your listing is currently ranking and find top performing keywords with high search intent for your target market. This will eventually give you a competitive advantage and increase your sales.
Save further time by using a smart tool that can create, bulk edit and optimize your ad campaigns for higher CTR. Ad automation adapts to your target audience and manages your bids, budgets, campaign rules etc. for you. At its core and when used to its fullest potential, this can also be a very efficient tool for lead generation.
Always stay on top of your inventory health and know exactly which products need to be restocked. An inventory management tool will send expiration notifications and use charts and KPI widgets to analyze profitability.
Amazon is an extremely competitive platform. You must make use of the top tools offered to Amazon sellers if you want to have an advantage over your rivals. Monitor your performance and that of your competitors with the aid of Amazon analytics.
Not only do Amazon analytics tools save you time but they also allow you to better understand your data so that you can work with it yourself by using one software instead of hiring specialists. Sounds cool, doesn’t it?
Frequently Asked Questions
Without market analytics, you cannot accurately assess how you are performing in comparison to the market at large.
Compare the main features, and decide what exactly you need and which benefits you can get. Check out the pricing options and if there’s a free trial.
A combination of tools such as SellerLogic Business Analytics, Keyword Tracking and Listing Optimization tools will provide you with a comprehensive look into products that are performing well, but also help you identify the areas that need improvement.
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