Amazon KPI Guide 2023

Amazon merchants are aware of the significance of Amazon’s Key Performance Indicator (KPI) data. With a multitude of data and analytical solutions, sellers and brands can simply access, manage, and assess their Amazon seller KPIs. These KPIs may be used by Amazon sellers and brands to monitor data and provide actionable insights that align with their long- and short-term goals.

Maintaining control over your KPIs is critical if you want to go the extra mile and achieve success – brand awareness, revenue, acquiring new consumers, or undertaking Amazon KPI analysis.

What is an Amazon Key Performance Indicator (Amazon KPI)

Amazon Key Performance Indicators (Amazon KPI) or Amazon Performance metrics are quantifiable measures used to determine how well your Amazon store performs compared to set benchmarks. You can monitor several key Amazon KPIs, as the success of your business depends on identifying them and paying attention to numbers.

Why is Amazon KPIs Important

Amazon is one of the biggest eCommerce marketplaces in the world. It facilitates Amazon sellers and vendors with powerful analytical tools, global selling options, and multi-channel fulfillment options. Amazon also enables you to carry out sales campaigns, logistics, marketing, customer support, and other online selling features from one single seller central dashboard. To monitor your marketing and growth strategies and see how when your store is doing, measuring Amazon KPIs is crucial!

How are Amazon KPIs Useful

Amazon KPIs are part of virtually every online business. Simply put, Amazon KPI assists in determining progress over a set period against established benchmarks. You can then use the information provided by these Amazon KPIs to get fully aware of the outcomes, develop and strengthen pre-existing key areas of performance, and work towards better performance.

It makes it challenging for sellers to know the effectiveness of marketing and progress areas. That is why implementing Amazon KPI or having an Amazon KPI dashboard is vital for success. Amazon KPIs will give your insight into your Amazon Account Health, including everything from product pricing, marketing strategies, customer satisfaction, and more.

Insights you can draw from Amazon KPIs

• It is the best idea to reduce Product Sales lost due to out-of-stock. Amazon KPI includes current inventory, Estimated Lost Sales (Units), and average. Unit Sales per Week, Sales Rank, to name a few.
• Sincere efforts should be made to boost sales in a planned way. Amazon KPIs include daily sales, conversion rate, and site traffic.
• Increase Buy Box Wins consistently and progressively. Amazon KPI has Amazon Feedback rating, customer service metrics, Late Shipment Percentage, and Refund Requests.
• Increase conversion rate in a planned way and try to reach the optimum output. Amazon KPI includes conversion rate, shopping cart abandonment rate, associated shipping rate trends, and competitive price trends.
• Increase Amazon Feedback rating percentage depending upon the number of customer inquiries. Amazon KPI includes the number of times you have late shipments, the total number of customer service inquiries, and Feedback score tracking.
• Work towards reducing customer service calls by half in the next 6 months. Amazon KPI includes service call classification, identifying pages visited immediately before the call, and events leading to the call.

How do Amazon KPIs Work

Amazon KPIs work to visualize a comparison between a key value and its target value. Amazon KPI displays a value comparison, the two values being compared, and a progress bar.

What is Amazon Buy Box Percentage? How is Amazon Buy Box Percentage calculated?

Amazon Buy Box Percentage is the percentage of page views where the Buy Box appeared on the page for customers to add your product to their cart. Amazon Buy Box Percentage is lowered when the product is out of stock. Therefore, Amazon Buy Box would result in the customer purchasing from another seller.

Your product was not available for purchase using the Amazon Buy Box, most commonly if you are selling a used item that appears on the “Other buying options” page. It is imperative to note that the Amazon Buy Box Percentage will only tell you whether your product will be purchased by a customer who clicked the Buy Box when they viewed the product details page.

Now is the right time to start if you have never looked at the Amazon Seller Central Business Reports.

Top 24 Amazon KPIs for 2023

Amazon Seller KPIs are a valuable tool for ascertaining opportunities that will enable you to identify your advertising strategy and provide proper insight into the overall channel performance for executives. Following are some KPIs extensively used to analyze data for businesses and clients.

• Sales
• Profit
• Inventory (on hand)

Though these metrics are the cornerstones of your e-commerce business, they cannot give you an in-depth analysis of your Amazon business. They are great to track if you are at the initial stages of the inception of your e-commerce store. However, these will not give you the right direction to track your business objectives. You need to have a crucial purview and know how to do Amazon KPI analysis to scale your business.

Important Amazon KPI that aid your Business Growth

Amazon Advertising Cost of Sales (Amazon ACoS) KPI

The Amazon Advertising Cost of Sales (Amazon ACoS) is relevant to the Ad spend / revenue of a particular business concern. The Amazon ACoS can be checked in both Amazon Vendor Central and Seller Central advertising consoles. It measures the performance of Amazon ad campaigns using the following formula:

ACoS = (Ad spend / Ad revenue) X 100

Using Amazon ACoS, you can see how much you spend on Amazon advertising compared to how much you earn from it. The Advertised Product Report and Search Term Report work as well, but there will be some minor attribution discrepancies.

Amazon ACoS KPI is the most preferred method of delivering campaign and keyword profitability data. It is essential to know this metric and its ranges at the account level, the product category, and the traffic segment level.

Amazon Total Advertising Cost of Sales (Amazon TACoS) KPI

Concisely, Amazon TACoS is the advertising spend relative to the total revenue generated. Therefore, Amazon TACoS will provide better insight into the long-term growth of a brand.

Amazon TACoS = (Ad spend / Total sales) * 100.

Gauging what percentage of your total revenue to your ad spend currently can help unlock growth opportunities and further contextualize your ad efforts for colleagues or executives looking to analyze profitability in multiple channels. (Note: Third-party sellers only.)

Amazon Return on Ad Spend (Amazon RoAS) KPI

The Amazon ROAS is relevant to the Ad revenue/Ad Spend of business concern for a particular period. Amazon ROAS metric can be calculated via the Targeting, Search Term, or Advertised Product Report both in the Vendor Central and Seller Central ad interfaces. Amazon has also begun to roll out this metric in many of its reports on a per-Amazon Standard Identification Number or per-campaign basis. Amazon ROAS is another angle from which to measure profitability.

Amazon RoAS= Total ad revenue / Total ad spend

RoAS= 1 / ACoS

Since Amazon ROAS is a much more common metric than Amazon ACoS in the paid search and digital marketing landscape, it is helpful to have this calculation handy while reviewing the Amazon ad performance across channels.

Read more about Amazon PPC Advertising.

Amazon Cost Per Acquisition (Amazon CPA) KPI

Amazon Cost Per Acquisition KPI (Amazon CPA KPI) is related to the Ad spend / orders, the optimum number of Ads in relevance to the number of Orders in any period of a business concern. You can calculate Amazon CPA KPI by referring to any of the three ad reports mentioned above and totaling and dividing the Spend and Orders columns. To get an accurate measurement, you should consider total orders driven by your ads but not by business-level orders.

Amazon CPA KPI measures the aggregate cost to acquire a shopper on a campaign, traffic segment, or channel level. It is great for measuring the effectiveness of campaigns and their underlying strategies. Establishing the desired Cost Per Acquisition (CPA) range can drive profitability and targeted reach.

Amazon Click-Through Rate (Amazon CTR) KPI

Amazon CTR is a metric showing the percentage of people who view ads with a call to action that leads to clicks. Amazon CTR is the metric found in the Campaign Manager’s Advertising section. Each campaign and keyword have a CTR in your Campaign manager. Amazon CTR is a metric available in both the Search Term and Targeting Reports for vendors and sellers. It can also be found within Seller Central.

In the reports, Amazon CTR is on a per-keyword or per-search-term basis. To calculate a total CTR, you must sum up the total number of Clicks and the total number of Impressions columns and then divide clicks by Impressions. This provides a great insight as to Amazon CTR is a great way to gauge the effectiveness of ads, their content, and the keywords driving those ads. Campaigns, keywords, or ASINs with an especially low CTR could indicate poor product-keyword alignment or reveal unprofitable search term traffic to avoid.

Read more about Amazon reports.

Amazon Average Order Value (Amazon AOV) KPI

Amazon AOV KPI is regarding the Revenue/orders related to a particular business. Amazon AOV KPI can be found in the Search Term, Targeting, and Advertised Product Reports. In addition, for a business-level calculation in Seller Central, you can use the same metrics within the Detail Page Sales and Traffic Report by Amazon ASIN. This gives a deep insight into how to Calculate Amazon AOV at the account, product category, and traffic segment levels, unlocking many insights concerning the changes in customer order size over time.

Amazon Ad Conversion Rate KPI

Amazon Ad Conversion Rate KPI is the percentage of clicks on your ad that converts into sales later. The average conversion rate on Amazon is 9.87%. A reasonable conversion rate is between 2%-5%. If the Conversion Rate shows an upward surge of 0.05%, it means that it is positive and will be important. Moreover, a point of mention here is that renowned brands enjoy better results. Concisely, your conversion rate can be defined as the percentage of users or visitors completing a specific action. The action can be a new purchase, a new download or signup, etc.

Amazon Ad Conversion Rate is available within the Seller Central interface at the account level. It is also listed in the Targeting, Search Term, and Advertised Product Reports on both the keyword and Amazon Standard Identification Number at the Amazon ASIN level.

Amazon Organic Conversion Rate KPI

You can find Amazon Organic Conversion Rate KPI regarding Total order Items/Sessions in the Detail Page Sales and Traffic Report by Amazon ASIN within Seller Central’s Business Reports section. Calculating your Amazon Organic Conversion Rate at the Amazon ASIN and product catalog level can provide more context for your advertising, listing optimization, and product launch efforts. Further, you can track your global Amazon conversion rate over time, which can shed light on buying patterns, category seasonality, and the effects of price changes. You should note that it applies to third-party sellers only.

Amazon Percent of Sales New to Brand KPI

Amazon Percent of Sales New to Brand KPI is relevant to New-to-brand revenue/ad revenue. You can find the new-to-brand revenue (sales) and ad revenue (sales) in Seller and Vendor Central Campaign Manager. Analyzing your sales percentage from new customers can provide insight into how many new customers are getting for the business through your ads. Sales are considered new-to-brand if the shopper has not purchased a product from your brand within the past 12 months. Additionally, new-to-brand data is only available for Sponsored Brands and Amazon Demand Side Platform (Amazon DSP) currently.

Amazon Inventory Performance Index KPI

One of the latest additions to Amazon Seller KPIs is the Amazon Inventory Performance Index KPI. Amazon Inventory Performance Indicator KPI is a metric that determines how well you manage your inventory and stock up on products in demand. The score ranges from 0 to 1000. A score below 350 indicates that your account has issues, and you need to improve it. A score above 400 indicates that your account is performing well. You need to monitor your account health to keep an eye on the Amazon inventory dashboard and act upon suggestions that Amazon has to offer.

Amazon Order Defect Rate (Amazon ODR) KPI

Amazon Order Defect Rate KPI (ODR KPI) is a performance metric that Amazon uses to rate the seller’s customer service standards. The Amazon Order Defect Rate is calculated based on the number of times the negative metrics were incurred divided by the number of overall orders received within a given period.

Amazon Order Defect Rate reflects negative feedback given by buyers on the Amazon platform, Amazon Chargeback claim left by buyers, and Amazon A-Z Claim. If it is proven that the claims are fraudulent, Amazon will protect the sellers from such fraudulent practices. Amazon strives to set the bar high for this KPI. It will allow the order defect rate to be under 1%. Past this number, you will get a warning message, and your account will be suspended. Amazon Order Defect Rate KPI is a key seller performance metric for any business.

Amazon Perfect Order Percentage KPI

Amazon Perfect Order Percentage KPI is a key metric of Amazon, and for every business, the emphasis is to optimize the Order Percentage. It means orders are accepted, processed, and fulfilled as they should be. You must track your products in the inventory and packaging and ship them to the customer to maintain an optimum order percentage.

Amazon Glance Views KPI

Amazon Glance Views KPI gives information about how many times a product detail page is viewed. Unfortunately, sellers and many vendors often confuse the Glance Views metric with Impressions. The primary difference lies in whether someone viewed a Product Detail Page, also called an ASIN Detail Page, or another visual element, such as an advertisement.

Customer Glance Views will enable you to understand the number of viewers interested in your product. Besides, there are several other ways to interpret Glance’s views. For example, Amazon will use Glance Views to understand the demand for your product. More demand for the product results in more volume of purchase orders.

Amazon Glance views allow you to do the following Amazon KPI analysis.

• Amazon Product Conversion Rate KPI
• Amazon Percentage Buy Box Fast Track KPI (for Amazon vendors)
• Amazon Percentage Replenishable Buy Box Fast Track KPI (for vendors)
• Amazon Percentage Replenishable Out of Stock KPI
• Amazon Views on non-replenishable items KPI (for book vendors)

Amazon Product Conversion Rate KPI

The Product Conversion Rate informs you about the number of buyers who purchased your product after landing on your product page.

Amazon Product Conversion Rate = Total Orders / Customer Glance views

Amazon Percentage Buy Box Fast Track KPI (for vendors)

The Amazon Replenishable Buy Box Fast Track KPI is another KPI for vendors on Amazon. The Amazon Replenishable Buy Box Fast Track KPI gives the frequency that the Fast Track offer is shown to the customers on replenishable items.

Amazon Percentage Replenishable Buy Box fast track = (Fast Track customer glance views on Replenishable Items / Total customer glance views on Replenishable Items) *100

Amazon Percentage Replenishable Out of Stock KPI

Amazon Replenishable Out of Stock is an essential metric that helps you to know the percentage of sales you missed due to the product or item being out of stock.

Amazon Replenishable out of stock Key Performance Indicator = (No. of Glance views when the product is out of stock/Total no. of glance views) * 100

Amazon Views on non-replenishable items KPI (for book vendors)

Amazon Views on non-replenishable items KPI (for book vendors) metric is exclusive for Amazon Book Vendors. Percentage Views on non-replenishable items help you identify the titles which can be moved to the manufactured-on-demand process as the shoppers are interested in the item.

Amazon views on non-replenishable items = (Customer glance views on non-replenishable product/ Total customer glance views of the product) *100

Amazon Pre-fulfilment Cancellation Rate KPI

Amazon Pre-fulfillment Cancellation Rate KPI is the percentage of seller-initiated order cancellations before the order is shipped divided by the total number of orders. The situation usually occurs when the merchant does not possess the declared number of products.

To avoid suspension, Amazon recommends that sellers maintain a pre-fulfillment cancellation rate of zero or less than 2.5%. High pre-fulfillment cancellation rates can be prevented by proper inventory management. The ideal practice is to show the actual quantity of goods in your inventory section or be ready to find the optimum volume required quickly.

Amazon Late Shipment Rate (Amazon LSR) KPI

Amazon LSR KPI represents orders shipped confirmed after the expected ship date as a percentage of total orders, over both a 10-day or 30 days. LSR only applies to seller fulfilled orders. Amazon’s Late Shipment Rate Policy is that sellers should maintain an LSR under 4% to sell on Amazon.

An LSR above 4% may result in account deactivation. You will receive a Performance Notification in Seller Central if your account is deactivated due to not meeting the LSR requirement. Within the notification, you will find steps on how to submit a plan of action (POA) for reinstatement.

Late Shipment Rate Calculation

The Late Shipment Rate is the number of seller-fulfilled orders confirmed after the expected ship date divided by the number of seller-fulfilled orders in the time of interest.

Tracking Number Validation

Amazon will validate tracking details for all seller-fulfilled packages, including the carrier’s name and tracking ID.

You will need to provide the following information when confirming a shipment:

• The name of the carrier.
• The specific delivery service is used for all seller-fulfilled orders.
• The tracking ID for all seller-fulfilled orders shipped with a tracking method.
• Maintaining a healthy late shipment rate.
• Ship orders on or before the expected ship date.
• Confirm orders as soon as you hand the package over to the carrier.
• Continuously monitor your late shipment score.

It is important to confirm the shipment of orders by the expected ship date so that customers can see their orders’ status online. Orders that are shipped confirmed late may negatively impact customer experience and lead to increased claims, negative feedback, customer contacts, or both.

Note: Expected ship dates are adjusted for national holidays.

Amazon Unit Session Percentage Rate KPI

If the Unit Session Percentage Rate of your products is high, it indicates that your products are good, and consumers are buying them regularly. On the other hand, it is low, which shows that you need to adopt a better strategy to improve product performance. If the Unit Session Percentage Rate is low, Amazon will not suspend your account.

But you must optimize this metric to keep it high, do your best to list a positive page rank, and boost sales volume. This will require your strategy to adopt specific measures like attracting leads and ensuring you keep and maintain a competitive pricing policy, use Amazon’s fulfillment service, collect feedback, and submit the same regularly.

Amazon Valid Tracking Rate (Amazon VTR) KPI

Valid Tracking Rate is the most understandable of all Amazon Seller Metrics. It displays the number of orders with valid tracking numbers of the shipment sellers accountable.

The platform automatically checks to track numbers in the global database, so your task is always to indicate real tracking numbers. When you do this, you will have no problems with this rating. This metric refers to your order tracking numbers and should ideally be less than 5%.

Buyer-Seller Contact Response Time (Amazon CRT) KPI

Amazon CRT KPI shows the number of queries you have processed within the last 24 hours, even including weekends. If you do not respond on time, such behavior can negatively impact customer service performance, so answering the messages promptly and with care should be your highest priority.

Amazon Product Ranking KPI

Amazon Product Ranking KPI is one of the crucial Amazon performance metrics sellers should be aware of in the Amazon ecosystem. Buyers choose Amazon for a specific reason, to shop for specific products. They rarely idly surf the net, and most will utilize the search option to find what they need. Plenty of users will not scroll until the last page of the search results. That is why the product ranking KPI is pivotal. You aim to get the bestseller rank in a relevant category to be on the very first page of the results.

What is the difference between Amazon ACoS KPI and Amazon TACoS KPI

Amazon ACoS KPI shows us the relationship between our campaigns’ expenses and income in the Marketplace. That will reflect how Ads are faring on Amazon and their profitability. From a logical purview, if the costs are less than your profit margin, it reflects that your campaign is promising and might be profitable.

Additionally, to define if your ad is profitable, you can look at the ACoS and other metrics such as Total Clicks, Impressions, Total investment in the ad campaign, and General sales to have a good picture of the situation. While Amazon TACoS KPI shows ad spend relative to total sales generated, it is evident that Amazon TACoS offers a more complete picture than Amazon ACoS.

Of course, a single measurement cannot reflect all aspects of your business. But tracking Amazon TACoS over time can show how your ad spends appears to be helping to increase organic sales. Of course, an ideal percentage is subjective and depends on what you try to do. However, the lower your TACoS, the better, just like with ACoS. For a mature product, 10-15% can be considered “healthy.”

There are two main ways to control and decrease this metric, and the inverse of these measures will increase.

• Your ACoS will show a decreased value by spending less and more effectively on advertising.
• You can increase the percentage of organic sales of your products.

It is not enough to have a low TACoS alone. You must also have to maintain it. There are a few established trends to watch out for when it comes to your TACoS: decreasing, increasing, or stagnant. A Decrease in TACoS means that you have an accelerated and high volume of sales and that your organic sales are showing a progressive trend. An Increase in TACoS represents an increase in your ad spending, but your organic sales are not offering a promising direction or upward surge. A Stagnant TACoS means a good account status and marks for consistency in overall sales volume.

Conclusion

These are some valuable insights that define your Amazon KPI analysis. We know every business is unique, and the list of KPI recommendations varies with the type of business and goals of individual teams. Tracking these KPIs will boost your Amazon account health eventually and help you to stay in the good books of Amazon. Understanding Amazon KPIs and reports will grant insight into the performance of your Amazon business. However, Amazon sellers and vendors often face some date issues, including –

• Limitations of Amazon dashboards in terms of customization,
• Historical data availability,
• Absence of a single view across different Amazon marketplaces,
• Manual compilation of reports, and

This is where we, Saras Analytics, can help with our eCommerce-focused Data pipeline (Daton) and custom ML and AI solutions to ensure you always have the correct data at the right time. Request a demo and envision how reporting is supercharged with a 360° view.