29 Dec Do you know the most important metrics on Amazon?

• When managing a marketpalace , it is essential that you have control over the metrics that detail the status of your account.
• Within Amazon, there are certain performance metrics that are required to be adhered to.

There are many statistics and key indicators, known as KPIs, that help you know the state of your business. For example, we can talk about whether your products are reaching people according to your marketing strategy, if they are generating the expected impact; but there are also others that measure your ability to offer a good service and that are capital within Amazon.

In this article, we focus on the main ones, which you absolutely have to keep an eye on.

Key metrics for your campaigns

Thanks to our experience of more than 10 years managing the largest marketplace in the world, we can say that there are seven indicators that stand out above others to know how your campaigns are performing:

• Impressions: This metric tells you how many people your products are reaching. A low impression rate can mean that something isn’t working.
• Clicks: Measure the number of visits your products receive. In this case, if your number of clicks is high but your sales are not, it may mean that something is wrong with the design of your strategy.
• Cost per click: this is a metric that is very easy to control as it derives from the price paid for the keywords used in your campaigns. In this way, you can adapt your investment to the performance of the rest of the metrics so that you never exceed the budget.
• Conversion rate: Measure the effectiveness of your ad in getting people to take the action you want, in this case, buying your product. It is calculated by dividing the total orders by the clicks and multiplying the result by 100.
• ROAS: Not to be confused with ROI. This metric measures the return on ad spend. It is calculated by dividing the profits by the ad spend and the higher the better.
• ROI: measures the net profit obtained against the investment made, including all costs. It is calculated by subtracting total costs from revenue (to get net profit) and then dividing it by total costs.
• ACOS: it is responsible for measuring the advertising cost of sales through pay-per-click (PPC). Compare the amount spent on PPC campaigns with the amount earned. It is calculated by dividing the ad spend by the revenue earned and multiplying it by 100.

Your Account Health Metrics

In addition to the statistics we’ve just seen, there are a number of ratios that you can’t forget because they indicate the status of your Amazon account. The most important are:

• Cancellation rate: This is the percentage of orders that the buyer cancels in a 7-day period. It only applies to customer-fulfilled orders, i.e. FBM. It must be less than 2.5%.
• Late shipments: Represents shipments that have been confirmed after the expected shipment date as a percentage of total orders in a period between 10 and 30 days.
• Order Defect Rate: Measures your ability to provide a good shopping service. It must be less than 1% and takes into account negative ratings, claims under the A-to-z Guarantee that have not been redone, and reversal of credit card charges.
• Account health level: This is a calculation based on several factors, including the number of unresolved policy violations at any given time, the severity of those violations, and customer satisfaction with you. You need to take action as soon as possible because if your account status changes to “At Risk” or “Critical,” you run the risk of Amazon deactivating it.

Reviewing these statistics on a daily basis is essential both to be able to offer a quality shopping service to the end customer and to be able to keep track of the metrics of your account.