Key Amazon Metrics To Keep A Close Eye On

When starting your e-commerce business, these are the top Amazon metrics key for success.

June 27, 2022
Guest Posts

When starting your e-commerce business, it is not enough to simply create a seller’s account and then start selling. Everybody can start their own online shop, but operating, maintaining, and achieving success in a sea of online competition can only be done if you are focused on improving your business performance. To do so, the key is to keep a close eye on your Amazon seller metrics.

A lot of Amazon sellers are still unaware but tracking your Amazon seller performance metrics is a vital part of making or breaking your business. The Amazon seller metrics is an essential barometer that accurately tells you where you are right now – or what is currently your product ranking in Amazon’s marketplace. 

As an Amazon seller, you must be keen on securing your standing on the platform and eligibility to sell your products. That’s why sellers often go to Amazon experts who offer growth services and know-how to dissect and assess Amazon seller metrics for the development of your business performance. 

Here are the Amazon seller performance metrics that you should be keeping an eye on:

1. Seller Rating

Having a high seller rating on Amazon is gratifying. But if it starts dipping, it is time to immediately revamp your marketing strategy based on the result of your seller metrics in order to troubleshoot your situation. 

Being on the top in Amazon’s Seller Rating will help you to keep an eye on the larger overview of your e-commerce business. It is vital in maintaining your selling privileges and is also a relevant factor in Amazon SEO. This Amazon rating combines metrics from customer feedback, fulfillment performance, cancellation rates, shipping times, and other important variables. These factors are the basis of your overall performance as an Amazon seller. 

2. Product Ranking

On Amazon, products that are sold the most will be the highest on the Best Sellers Rank. Therefore, when you are at the top of the ranking, your product will rank well for several high-volume keywords which means you will land on the first page of search results when potential customers look for your product. That abundance of traffic is a great opportunity to turn those sessions into sales conversion rates.

The Best Seller rank is measured by how many units of a product in a specific category are sold, no matter how big the revenue and how great the seller reviews or customer feedback are. The rankings are being updated every hour, so go get selling now!

3. Unit Session Percentage

Every seller wants the traffic on their product page to turn into sales. More traffic is good, but people actually buying your product is a lot better. Unit Session Percentage is a term used to determine your product’s conversion rate or sales. It reflects how in-demand your product is in the market. 

The average Unit Session Percentage on Amazon is just over 12%. In order to escalate your percentage, it is very important to have an appealing product listing. You must have effective copy, good images, price point, and must acquire excellent reviews from the customers to influence other potential buyers. By achieving a high percentage, it can help ower advertising cost while generating more income.

4. Invoice Defect Rate

As a seller, you must be aware that Amazon puts up strict standards when it comes to sellers delivering invoices to their customers. Invoices or receipts are essential because they are often required for tax or accounting purposes. 

The Invoice Defect Rate measures the seller’s consistency in providing timely invoices to their customers. Amazon’s goal is to have an under 5% invoice defect rate. They are expecting sellers to provide invoices within one business day of the sale. Amazon already provides a service to assist the sellers in generating and sending invoices to their customers easily. The invoice defect rate can be viewed on the account health page on Amazon seller central.

5. Order Defect Rate

Receiving negative customer feedback is one of the nightmares of an Amazon seller. The more negative reviews, chargebacks, and returns are tantamount to lesser potential customers. People do not likely trust a seller's profile with an unsatisfactory reputation.

Order Defect Rate is calculated by the number of negative customer experiences your profile has received within 60 business days. It is based on all orders you have provided from each Amazon customer. An order defect rate of above 1% does not only lead to lower sales but can also cause suspension or deactivation of your seller account. That’s why as a seller, you should seriously focus on giving excellent and quality service to all of your clients. 

6. Late Dispatch Rate

The perk of buying online is the hassle-free experience. Customers are expecting that their orders will be delivered to their homes on an expected date. Having a late delivery is a nuisance to almost all customers. And their tendency is to return the product and just buy it at a different store.

Amazon requires sellers to maintain a dispatch rate of under 4%, a rate exceeding this may eventually lead to suspension or deactivation of your account. That’s why sellers must ensure that their orders are shipped on the right schedule to avoid negative customer feedback. Late Orders are considered late if they arrived more than 3 days later than the expected ship date. Effective inventory management practices and a sound logistics system can help a seller in maintaining a low Late Dispatch Rate.

 

Keeping track of all the metrics may seem a daunting task, but learning, understanding, and utilizing them in your marketing campaign will greatly help every seller on Amazon to achieve success. It is the key to knowing what areas you must improve and which areas you are excelling in. Knowing the strengths and weaknesses of your service is essential in the holistic development of your business.

So keep a close eye on your Amazon Performance Metrics now and start transcending your seller’s performance!

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