{"id":84410,"date":"2020-06-23T08:25:00","date_gmt":"2020-06-23T08:25:00","guid":{"rendered":"https:\/\/www.sellerlogic.com\/blog\/the-key-amazon-kpis-at-a-glance-these-metrics-sellers-should-definitely-pay-attention-to\/"},"modified":"2025-10-13T10:07:40","modified_gmt":"2025-10-13T10:07:40","slug":"the-key-amazon-kpis-at-a-glance-these-metrics-sellers-should-definitely-pay-attention-to","status":"publish","type":"post","link":"https:\/\/www.sellerlogic.com\/en\/blog\/the-key-amazon-kpis-at-a-glance-these-metrics-sellers-should-definitely-pay-attention-to\/","title":{"rendered":"The most important Amazon KPIs at a glance: These metrics should definitely be considered by sellers!"},"content":{"rendered":"

The myth persists: Amazon makes sellers rich. However, anyone who has dealt with this topic quickly comes to the realization: Amazon can work well for sellers, but it is by no means a guaranteed success! Like any other business, entrepreneurs must also keep an eye on the important KPIs on Amazon.<\/p>

Because the e-commerce giant quickly punishes marketplace sellers who do not have their metrics under control. But first, we want to clarify what so-called Key Performance Indicators,<\/strong> or KPIs, actually are and what they can be useful for. Afterwards, we will delve into the Amazon KPIs.<\/p>

What are KPIs and why are KPIs useful?<\/h2>

\u201cKey Performance Indicator\u201d can be translated as \u201cperformance metric<\/strong>\u201d and comes from business administration. KPIs can measure the extent to which important objectives have been implemented or to what degree they have been achieved. In manufacturing, an important KPI can be, for example, the average utilization of a machine compared to the maximum possible utilization.<\/p>

The concept has also gained widespread acceptance in the digital industry<\/strong>. Whether it’s a personal online shop or Amazon \u2013 an important KPI is, for example, the conversion rate. For advertisers, KPIs relate to the impressions of an advertisement and its click-through rate. B2B websites, on the other hand, often measure their success based on leads.<\/p>

Thus, KPIs help to keep important performance metrics in view and systematically check critical success factors<\/strong>. Only those who measure their success or failure know where the issues lie in the machinery and what is already working well. Then it is also possible to optimize with purpose and understanding.<\/p>

Which KPIs are relevant for Amazon?<\/h2>

Unlike sellers who have their own online shop, marketplace sellers face special challenges. Because relevant KPIs on Amazon are often set by the online giant itself<\/strong>. Those who do not pay attention to these performance metrics have no chance of ranking high with their products or winning the Buy Box<\/a>. And those who do not succeed in this will hardly sell products.<\/p>

Additionally, many of the usual KPIs, such as impressions or click rates, cannot be measured or can only be estimated by the marketplace seller. The best chance to influence click rate, conversion rate, and sales<\/a> is for sellers to know the KPI metrics set by Amazon and align the optimization of their business accordingly.<\/p>

Penalty for non-compliance<\/h3>

There is another important reason why relevant Amazon KPIs should definitely be monitored: Amazon does it too. If sellers ignore the performance metrics, they risk being unable to meet the required standards.<\/strong> Once this happens, Amazon is aware of it \u2013 and this can not only affect the ranking or the profit of the Buy Box. Anyone who has ever had to create an action plan knows that this is not a desirable goal and only wastes unnecessary time and money. In the worst case, the e-commerce giant may even suspend the entire seller account. For entrepreneurs whose core business is Amazon, this would be a disaster.<\/p>

There are many reasons to monitor all performance metrics. If an Amazon KPI threatens to slip into a critical area, countermeasures can be taken early on to avoid account suspension.<\/p>

Important KPIs: Seller Performance<\/h3>

That the shipping method<\/strong> and shipping duration<\/strong> play an important role is something that every marketplace seller has probably noticed by now. Amazon prefers it when sellers ship through the in-house program “Fulfillment by Amazon” (FBA)<\/a>. On one hand, this brings additional revenue to the platform provider, and on the other hand, it guarantees fast and uncomplicated delivery, which ensures customer satisfaction. But the shipping methods Prime by Sellers<\/em> or Fulfillment by Merchant<\/em> also meet the standards.<\/p>

Equally important as an Amazon KPI is the overall seller performance<\/strong>. This consists of different indicators:<\/p>

Amazon KPI<\/strong><\/th>Description<\/strong><\/th>Maximum Value \/ Ideal Value<\/strong><\/th><\/tr><\/thead>
Rate of Order Defects<\/td>Negative feedback, service-related credit card chargeback, A-to-Z Guarantee claim<\/a><\/td>below 1%, ideally 0%<\/td><\/tr>
Cancellation Rate<\/td>Seller Cancellations Before Order Fulfillment<\/td>below 2.5%, ideally 0%<\/td><\/tr>
Rate of Valid Tracking Numbers<\/td>Tracking numbers that are valid<\/td>at least 95%, ideally 100%<\/td><\/tr>
Rate of Late Deliveries<\/td>late delivery = shipping confirmation after the expected shipping date has passed<\/td>below 4%, ideally 0%<\/td><\/tr>
Dissatisfaction with Returns<\/td>Return request with negative customer feedback, return inquiries not answered within 48 hours, incorrectly rejected return requests<\/td>below 10%, ideally 0%<\/td><\/tr>
Seller Ratings<\/td>Average Seller Rating and Number of Ratings<\/td>as positive as possible, as high as possible<\/td><\/tr>
Response Time<\/td>average time taken to respond to customer inquiries over the last 90 days<\/td>below 24 hours, ideally below 12 hours<\/td><\/tr>
Inventory<\/td>Out of stock, delivery difficulties<\/td>as rarely as possible<\/td><\/tr>
Dissatisfaction with Customer Service<\/td>negative feedback from a customer on a response in the buyer-seller messaging system<\/td>as low as possible<\/td><\/tr>
Rate of Refunds<\/td>Ratio of refunds in the last 30 days to the total number of orders<\/td>as low as possible<\/td><\/tr><\/tbody><\/table><\/figure>\t\t
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\n\t\t\t\tThe 14 most important criteria for winning the Buy Box on Amazon and how to keep your metrics under control<\/a>\n\t\t\t<\/div>\n\t\t\t
A detailed description of all key KPIs on Amazon<\/strong> for sellers and how they approach optimization has already been discussed in detail here<\/a>. We provide not only the minimum requirements and all ideal values but also the underlying calculation formula.<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/div>\t\t<\/div>\n\t<\/div>\n

Other Relevant KPIs for Amazon<\/h3>

Professional sellers do not just list their products on Amazon, monitor important KPI metrics, and then call it a day. There is more to it. Especially private label sellers must also deal with the topic of Advertising<\/a>. And the same performance indicators apply on Amazon that are used as KPIs in Marketing<\/strong> in general.<\/p>

Another important Amazon KPI is therefore the ACoS<\/strong>, short for “Advertising Cost of Sale”. This indicator relates the costs of advertising campaigns to the revenue generated by this advertising: ACoS = Advertising Costs \/ Revenue.<\/p>

With a revenue of 50,000 euros and advertising expenses of 3,000 euros, the ACoS would be 6%. However, how high the ACoS can be varies from product to product<\/strong>. To determine this, all costs that the seller incurs in addition must be deducted from the selling price, such as production costs, sales tax, or overhead costs. For example, if the seller makes a profit of 15 percent of the selling price with a coffee machine, the ACoS must not exceed 15 percent. Otherwise, it would result in a loss.<\/p>

How high or low the ACoS can be as an Amazon KPI depends on many other factors that must be considered individually, such as the goal of the PPC campaigns<\/strong>, the margin<\/strong>, and how high the competitive pressure<\/strong> is within the product category. Unlike Google Ads, Amazon Ads not only contribute to the sales of a product but also always have an impact on organic visibility.<\/p>

Due to this more holistic effect, many sellers have started to increasingly focus on the Cost per Order (CPO)<\/strong> as an Amazon KPI. In this case, the advertising expenses of a specific period are divided by the total sales achieved in the same period. This takes into account the fact that Amazon Ads have a larger impact radius.<\/p>

Conclusion: Those who do not monitor, lose!<\/h2>

Selling on Amazon<\/a>, but not checking important KPI metrics regularly? You can try, but it’s pointless. Because those who do not know where the error in the system lies are hardly able to optimize their business in time. The consequences can be not only a downgrade in ranking or the loss of Buy Box \u2013 a suspension of the account is also a quite realistic prospect.<\/p>

Therefore, Amazon sellers should always keep important KPI metrics in mind and respond promptly to problems.<\/strong> The same applies to the performance of PPC campaigns in the Amazon ecosystem, even if the guidelines here are not as concrete as for seller performance. Here, ACoS and CPO should be monitored to assess whether a campaign is achieving its goal.<\/p>

Image credits in the order of the images: \u00a9 WrightStudio \u2013 stock.adobe.com<\/p>","protected":false},"excerpt":{"rendered":"

The myth persists: Amazon makes sellers rich. However, anyone who has dealt with this topic quickly comes to the realization: Amazon can work well for sellers, but it is by no means a guaranteed success! Like any other business, entrepreneurs must also keep an eye on the important KPIs on Amazon. 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