Amazon Seller KPIs: A General Understanding
There’s nothing more exciting than opening up your own business, working on it, saving your money and contributing it to the development of your company. However, things are not the same when we are talking about Amazon sellers who are trying to maintain and grow their business on Amazon.
Everyone wants to create a business and have it developed in a couple of seconds, but that’s not how everything works here. So, if you are here to understand the secret of selling on Amazon and how to achieve success on one of the strictest platforms of the world, there is one thing you should know!
To be in good terms with the platform and operate your store with your eyes closed, you need to follow and monitor Key Performance Indicators, which are otherwise called KPI metrics.
Importance of KPIs
Imagine you are on a fishing trip. You calmly sit in your boat, look at the still still water and enjoy your life. But there’s one thing you forgot to do – you forgot to keep an eye on the rod… Because of this, you missed the fish you wanted to catch so bad: so you say, who’s the one to blame?
The same thing happens on Amazon. Once you start neglecting your KPI metrics, you lose potential customers, have no sales and get easily depressed when it comes to selling online. Apart from that, ignoring these metrics will aggravate the relationship with Amazon: you may lose your account, have it deactivated and lose all the money you earned so far…
Amazon Seller KPIs to Consider
Sales Conversion Rate
If you want to have the bigger picture of your effectiveness while converting leads into customers, you need to keep an eye on your sales conversion rate. However, this is not only for you and your business sales: Amazon monitors it as well!
The platform does everything to understand how many people exactly visit your page and whether they buy products from you or not. One of the reasons Amazon does that is because it doesn’t want its customers to see low-quality listings that are simply not worth it.
In other words, sellers with low sales conversion rate do not practically have the opportunity to be visible in Amazon search results.
You have most probably thought about this, haven’t you? Product ratings and how they are estimated by customers is one of the key elements of your selling career. It’s quite obvious that having products with 1 or 2 stars will not only be visible on Amazon, but will also harm Amazon’s customer service and make you pay for that.
And we’re not even talking about harsh Amazon suspensions! If you want to operate your business together with tons of customers, sales and orders, and without Amazon account suspensions, you need to have good products ratings and always address every mistake you make as a seller!
As you may know, Amazon pays close attention to the return policies. Why? Because no customer would purchase something from Amazon if it didn’t give the opportunity to return the product. Even the eCommerce giant realizes that shopping online causes unnecessary stress and sometimes, false expectations, which is why every seller should know how the returns will be addressed.
If your customers have the guarantee that the product they ordered can be easily returned, you will meet both Amazon and customers’ standards.
Order Defect Rate
When it comes to Order Defect Rate (ODR), it’s needless to talk about its importance. According to Amazon, “the Order Defect Rate is a key measure of your ability to provide a good customer experience.” These are the types of order defects:
- Negative feedback
- An A-to-z Guarantee claim that is not denied
- Credit card chargeback
To understand Amazon’s needs and expectations, you should regularly monitor your ODR metrics and make sure everything is okay.
As you can see, you need to monitor your KPI metrics to be on good terms with Amazon, maintain a healthy account and be snowed under orders and sales! Just start from your Amazon store, work with Amazon product launch services, take care of your Amazon listing optimization, and follow your KPI metrics: this is the secret of success!