Unlocking Success on Amazon: The Key Metrics Every Brand Should Prioritise for Optimal Performance
For brands selling on Amazon, tracking the right metrics is essential for driving growth and maintaining a competitive edge. While many sellers focus on boosting sales, there are several key performance indicators (KPIs) that can make or break your success on the platform. Understanding and prioritising these metrics will help you unlock sustained success on Amazon. So, what are the key metrics every brand should focus on to achieve optimal performance?
1. Conversion Rate (CR)
Your conversion rate is one of the most important metrics to track. It tells you how many people who view your product listings are actually purchasing them. A low conversion rate often indicates that something in your listing—such as images, descriptions, or even reviews—is deterring customers from buying. Brands should aim to continually improve this metric by optimizing product pages, ensuring compelling images, and providing detailed descriptions.
Monitoring and improving your conversion rate will not only boost sales but also improve your product’s ranking in Amazon’s algorithm, helping it appear more prominently in search results.
2. Amazon Sales Rank
Your Amazon Sales Rank reflects how well a product is selling relative to others in the same category. It’s updated hourly, so it provides real-time feedback on how well your product is performing. While it’s influenced by sales velocity, improving your product’s sales rank requires a strong listing and solid marketing strategy. A lower sales rank (closer to 1) makes your product more discoverable, which leads to even more sales.
3. Customer Reviews and Ratings
Customer reviews and ratings directly impact your sales and brand reputation on Amazon. Higher ratings lead to increased consumer trust and higher conversion rates. Brands should strive to maintain a strong average rating of 4 stars or higher. In addition, regularly collecting customer feedback can provide insights into areas for product improvement.
Actively managing your reviews—responding to both positive and negative feedback—demonstrates excellent customer service and can influence potential buyers.
4. Advertising Cost of Sales (ACoS)
For brands running Amazon PPC campaigns, ACoS (Advertising Cost of Sales) is a critical metric to monitor. It shows the ratio between your advertising spend and the sales generated by that ad. A low ACoS means you’re spending less on ads to drive sales, which is ideal for profitability. However, brands should strike a balance between a low ACoS and the overall visibility and reach of their ads.
Optimising your PPC strategy to improve ACoS while maintaining ad reach is key to scaling your advertising efforts without wasting money.
5. Organic vs. Paid Traffic
Another essential metric to track is the ratio of organic traffic versus paid traffic to your listings. Organic traffic is driven by how well your product ranks in Amazon’s search results, while paid traffic comes from your advertising campaigns. A healthy Amazon strategy aims to increase organic visibility while supplementing it with well-targeted paid campaigns.
Monitoring the balance between organic and paid traffic helps ensure that you aren’t overly reliant on ads to generate sales. Brands that invest in SEO and listing optimisation often see sustained growth from organic traffic.
6. Buy Box Percentage
The Buy Box is where the majority of Amazon sales are made, so it’s crucial to understand how often your brand is winning it. Factors such as price, inventory levels, and fulfillment method impact whether you win the Buy Box. Consistently monitoring and improving these factors ensures that your products are more likely to be chosen when multiple sellers are offering the same item.
For brands, winning the Buy Box is a key indicator of overall Amazon success, as it directly influences sales and profitability.
7. Return Rate
Your product’s return rate is a reflection of its quality and customer satisfaction. A high return rate can hurt your profitability and negatively impact your product’s ranking. Tracking return rates helps brands identify potential issues with product quality, fulfillment, or even customer expectations.
Reducing your return rate by addressing common customer complaints or improving product descriptions will lead to more satisfied customers and fewer costly returns.
Ready to Unlock Your Brand’s Success on Amazon?
Prioritising and consistently monitoring these key metrics will give your brand the insights needed to thrive on Amazon. Whether it’s improving conversion rates, optimizing your PPC strategy, or winning the Buy Box, focusing on the right KPIs is essential for sustained growth and profitability.
At Mercato Agency, we specialise in helping brands track, optimise, and act on these critical metrics to achieve optimal performance. Our expert team provides tailored strategies to help you dominate the Amazon marketplace.
Contact Mercato Agency today to learn how we can help you unlock your brand’s full potential on Amazon.
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