The business-level reports are great for locating opportunities to determine the advertising strategy for your e-commerce business. But with numerous metrics, it can almost be rather overwhelming to decide which data can be useful. This is especially true if you are a new player in the online marketplace. To make impactful decisions about your business brand on Amazon, you need to use these metrics to deal with the key performance indicators (KPIs). These metrics will help you in monitoring the performance of your business on Amazon.
What are the key performance indicators that you need?
Cost of sales and advertising (Ad spend/Revenue)
To calculate the average cost of sales, visit the target report page or refer to the interface. Then, add the total Spend and Sales columns and divide to get the average cost of sales.
Return on the expense for advertising (Ad revenue/ Ad spend)
This metric is also available on the target report page or the interface. You can also obtain the report on a per-campaign basis from Amazon.
Cost per acquisition (Ad spend/ Orders)
Refer to any of the ad reports and then add and divide the total Spend and Orders columns. This will give you the cost per acquisition figure.
Click-through rate (Clicks/ Impressions)
This is a metric available for both the sellers and the vendors in Amazon. It is available within the central interface of the website. To calculate the total click-through rate, take the total Clicks and divide by the total Impressions columns.
Ad conversion rate (Orders/ Clicks)
With the ad conversion rate, you will understand the position of your product in the ecosystem of Amazon and where it stands in the competitive landscape. To calculate the total ad conversion rate for a fixed period, add up the total Orders and Clicks column and divide.
Total page views (Organic clicks + Paid clicks)
Pageviews are the number of visits to your product on Amazon. It shows how successful the paid and organic marketing strategies are in bringing customers to your listings on Amazon.
The average value of orders online (Revenue/ Orders)
This calculation metrics is available on the Target report page and can be used for calculating the changes in the average value of the orders over time. Add up the total revenue in a given period and divide it by the total orders.
Organic conversion rate (Total ordered products/ session)
Find out the buying patterns of your customers and the effects of price changes of your products with the organic conversion rate. This report will provide you more context for the optimization and advertising of your products. Divide the total ordered products by the total number of sessions.
Percentage of total sales (New brand revenue/ ad revenue)
Calculate how many new customers you have gained via ads for your Amazon listings with this metric. To calculate this value, add the new to brand revenue and divide the same with the total ad revenue.
Total profitability (Revenue- (total inbound cost + total outbound cost) = profitability)
The profitability mentioned here is the profit that you earn as a vendor of Amazon. Calculate the profit earned by the equation:
Revenue - (total inbound cost + total outbound cost) = profitability
Create optimized product listings and offer exclusive products to increase the profitability on Amazon. You can also increase the profit margin by optimizing the product packaging. This will reduce the wholesale and logistics costs and give you a better profit.
Total sales in Amazon can’t solely give you a clear picture of how your brand is faring in Amazon. However, with the help of the above metrics, identify the weak points that you may have in your sales system and improve on them. C2 Corner provides end-to-end management and marketing service to multiply your sales in the Amazon Marketplace.