With so many metrics available – many of which may not be relevant to your business – it’s difficult to know which ones will truly help you achieve Amazon ecommerce success. That’s why knowing how all the sections of your business work, what influences them, and how to fix any problems is critical to your growth and sustainability.
How do you generate an accurate exterior look at your business? How do you get a concise picture of how things are going? If your sales are dipping or remain stagnant, what are the correct actions to take to get them trending upwards?
Sessions directly measure how many individual people have viewed your listing within a 24 hour period. They are important because each session is a potential customer; and of course, any time you can get someone to view your product, it’s a potential sale.
So how do you increase sessions? There are a couple of strategies:
The related metrics that influence Sessions are:
Knowing how these metrics relate to Sessions will help you figure out the problem if your Sessions are going down.
Conversions measure the average number of units sold per session. So, for example, if you have a 30% conversion rate, you’re selling 3 units for every 10 sessions. Conversions are directly influenced by the following factors:
Related metrics that influence conversions include:
If you understand how each of these factors relates to your product, you can identify which areas of your business need attention to get better conversions.
Many Amazon Sellers are focused on how high their revenue is, but that can create a false narrative of success. Knowing your actual profit can be difficult, too, because there are many elements that determine it, which is usually why sellers just look at Revenue.
Profit is what is left after deducting all of the following:
Of course, this does not take into account external fees you could have, like Google or FB Ads, VA payroll, or subscriptions to other softwares.
And look, that is a lot. You’re going to need to track all of this for each product you sell, so you can understand which products are actually selling well and making profit.
The related metrics that influence profit are:
Now, many of these metrics you can’t even get on Amazon. You need a tool that can provide the most important Amazon metrics. If your profit is going down, check these stats to find date-coincident points to see what may be the cause.
As mentioned previously, reviews are among the best metrics for sellers on Amazon, so keeping a steady flow of new reviews is important. They can genuinely make or break your product and company sales. Buyers almost always look at product ratings before making a purchase, so keeping and maintaining a high star rating is critical to your success. But how can Amazon sellers tap the powers of reviews?
First, make sure your product is high-quality, and use that to build an engaging brand experience for customers. This can really help one-time shoppers become repeat buyers. Make sure you follow up, and build a connection with your customer base with regular communication, and let them know how they can most easily reach you. Once you’ve established that connection, feel free to be direct, and encourage new and repeat customers to write Amazon reviews for your product.
While you’re at it, check out these related metrics, which will influence your star rating:
Having a high star rating is great, but if you’re not getting new reviews, it will harm you in the long run. If you have a ton of reviews, but not a high star rating, you’re not going to get many new sales. If you’re not getting new customers, you’re not going to be getting in a steady flow of new reviews. SO, as with all things, balance is key. Make sure you can adapt and find yours.
You might be asking yourself right now, “How can there only be four metrics that cover every aspect of selling on Amazon? Why only four KPIs?” The answer is in the Amazon Sales lifecycle:
There are many other Amazon metrics, but what’s important to note is that ALL of them directly impact one of these four KPIs. There can be many “KPIs” for different parts of your Amazon business, but the four metrics laid out here are what you need for your entire Amazon account, as well as the overriding KPIs for each Product you sell.
So, the next time your sales go down, don’t automatically scale back, or examine PPC or your listings. And definitely don’t decide not to act! Instead, ask yourself which KPI is actually down, then drill into the areas that relate to that KPI. Then you’ll know you can take the right actions to get your sales going back up!
If you’re looking for an all-in-one tool that can help you on your journey as a seller in the Amazon lifecycle, Carbon6 can help! Check out ManageByStats today, and learn how to easily manage and scale your Amazon business!