A majority of online shoppers prefer buying products from Amazon because it offers the best deals for them to save money. However, those who want to sell their products on the platform should keep certain things in mind that help ensure the best results. Another thing is that they should know some important metrics to track the performance levels while selling products on Amazon. Understanding the metrics enables a company to take its business to the next level in the market.
8 Important metrics to track on Amazon
- Product ranking
Product ranking is an important metric to follow while selling products on Amazon. This is because most consumers use the search box when buying an item. A business should aim for a bestseller ranking on the platform that helps increase sales considerably. Amazon will decide the Best Seller rank based on the sales volume. If a business gets high traffic to Amazon items but has a low conversion rate, then it should reconsider strategies.
Seller rating is another metric to keep in mind when selling items on Amazon. The platform will determine the selling rating based on 6 major factors such as shipping time, customer reviews, chargebacks, order cancellations, customer inquiries, and A to Z guarantee claims. A
- Inventory performance
Inventory performance is necessary for FBA sellers on Amazon and the platform may limit storage for a business that has a low inventory performance. Furthermore, it even suggests three suggestions for increasing the score.
- Order defect rate
Order defect rate is one of the metrics to follow on Amazon because it will issue a warning to a seller. The platform will determine the metrics based on certain factors such as chargeback, negative reviews, and A to Z guarantee claims.
- Units ordered
A business should consider evaluating the number of units ordered on Amazon. This will help know the effectiveness of Amazon’s presence to implement the strategies based on them. Some customers order multiple products in a single order allowing a business to increase its profitability.
- Unit session percentage rate
Amazon will calculate the session percentage rate which is similar to a conversion rate. It determines the percentage rate by dividing the number of units ordered by the number of total sessions. A business should look at the percentage rate when it experiences low sales or low traffic. It makes feasible methods to improve the conversion rates significantly.
- Fulfilment performance
Fulfilment performance is an important metric that determines the success of a company on Amazon. It determines the accountability of a seller based on the services offered to buyers in the market.
- Invoice defect rate
Invoice defect rate is a new metric introduced by the Amazon platform and a business should upload its invoices for customers after shipping products to them. A seller should maintain an IDR under 5% to provide a good customer experience. When a business fails to meet expectations, Amazon will issue a warning and it should reduce the IDR.