10 Critical Amazon Seller Metrics Explained

published on 08 July 2024

Here's a quick overview of the 10 key Amazon seller metrics you need to track:

  1. Order Defect Rate (ODR)
  2. Seller Rating
  3. Buy Box Percentage
  4. Inventory Performance Index (IPI)
  5. Perfect Order Percentage (POP)
  6. Customer Feedback Score
  7. Return Rate
  8. Conversion Rate
  9. Advertising Cost of Sales (ACoS)
  10. Total Advertising Cost of Sales (TACoS)

Tracking these metrics helps you:

  • Spot problems early
  • Make data-driven decisions
  • Improve your selling performance
  • Meet Amazon's standards
Metric What It Measures How to Improve
ODR Problem orders Ship on time, describe products accurately
Seller Rating Overall performance Focus on customer satisfaction
Buy Box % Buy Box wins Competitive pricing, fast shipping
IPI Stock management Use Amazon's tools, plan restocking
POP Correct, on-time orders Accurate listings, efficient processing
Feedback Score Positive customer reviews Quick responses, accurate listings
Return Rate Orders sent back Accurate descriptions, quality products
Conversion Rate Visitors who buy Optimize listings, competitive pricing
ACoS Ad spend vs. sales Target ads, monitor performance
TACoS Total ad spend vs. sales Efficient campaigns, regular monitoring

Use Amazon Seller Central and third-party tools to track these metrics. Set goals, make improvement plans, and regularly review your performance to grow your Amazon business.

What Are Amazon Seller Metrics?

Amazon seller metrics are numbers that show how well a seller is doing on Amazon. These numbers help sellers:

  • See how their business is doing
  • Find ways to do better
  • Make smart choices based on facts

Amazon also uses these numbers to:

  • Check if sellers are doing a good job
  • Decide if sellers can join special programs

Here's why tracking these numbers is important:

Reason Benefit
Find problems early Fix issues before they hurt sales
Make better choices Use real data to guide decisions
Sell more Find ways to improve and sell more
Keep Amazon happy Meet Amazon's rules and stay in good standing

By watching these numbers, sellers can:

  • Make customers happier
  • Offer better products
  • Improve their marketing
  • Grow their business

Tracking these metrics helps sellers understand what's working and what's not. This way, they can focus on the right things to make their Amazon business better.

10 Key Amazon Seller Metrics

Here are the 10 main metrics Amazon sellers should watch:

1. Order Defect Rate (ODR)

ODR shows how many orders have problems. A high ODR can get your account closed. To keep it low:

  • Ship on time
  • Describe products correctly
  • Give good customer service

2. Seller Rating

This affects your chances to win the Buy Box and gain customer trust. It's based on:

  • Customer feedback
  • Shipping speed
  • Product quality

To keep a good rating, focus on making customers happy and fixing problems quickly.

3. Buy Box Percentage

This shows how often you win the "Add to Cart" button. To win more:

  • Price competitively
  • Ship fast
  • Give good customer service

4. Inventory Performance Index (IPI)

IPI measures how well you manage your stock. A high score means you're doing well. To improve:

  • Use Amazon's stock tools
  • Keep track of your items
  • Plan your restocking well

5. Perfect Order Percentage (POP)

POP shows how many orders are done right and on time. A high POP means happy customers. To increase it:

  • List products accurately
  • Ship on time
  • Process orders efficiently

6. Customer Feedback Score

This shows the percentage of good reviews from customers. To improve:

  • Make customers happy
  • Answer feedback quickly
  • List products accurately

7. Return Rate

This is the percentage of orders customers send back. A high rate can mean product issues. To lower it:

  • Describe products accurately
  • Sell good quality items
  • Give good customer service

8. Conversion Rate

This is the percentage of visitors who buy. A high rate means good listings and prices. To improve:

  • Make your listings better
  • Use good product photos
  • Price competitively

9. Advertising Cost of Sales (ACoS)

ACoS shows how much you spend on ads compared to sales. A high ACoS can mean inefficient ads. To improve:

  • Target your ads well
  • Bid competitively
  • Check ad performance often

10. Total Advertising Cost of Sales (TACoS)

TACoS includes all ad spending compared to sales. A high TACoS can mean poor ad or sales performance. To improve:

  • Target your ads well
  • Bid competitively
  • Check all ad performance often
Metric What It Measures How to Improve
ODR Problem orders Ship on time, describe products well
Seller Rating Overall performance Focus on customer satisfaction
Buy Box % How often you win the Buy Box Competitive pricing, fast shipping
IPI Stock management Use Amazon's tools, plan restocking
POP Correct, on-time orders Accurate listings, efficient processing
Feedback Score Positive customer reviews Quick responses, accurate listings
Return Rate Orders sent back Accurate descriptions, quality products
Conversion Rate Visitors who buy Optimize listings, competitive pricing
ACoS Ad spend vs. sales Target ads, monitor performance
TACoS Total ad spend vs. sales Efficient campaigns, regular monitoring
sbb-itb-8201525

How to Track and Improve Your Metrics

To make your Amazon business better, you need to watch your numbers and make them better. Here's how:

Setting Performance Goals

  1. Choose which numbers you want to improve
  2. Set clear targets
  3. Make a plan to reach those targets

Using Amazon Seller Central

Amazon Seller Central

Amazon Seller Central helps you track your business. Use it to:

  • Check your Order Defect Rate
  • See your Seller Rating
  • Look at other important numbers

If you use FBA, you can also check:

  • How much stock you have
  • How well you're shipping
  • If customers are happy

Using Other Tools

Tools like Sellics, Jungle Scout, or Helium 10 can help you:

Tool Feature What It Does
Keyword tracking Shows how well your products show up in searches
Review monitoring Keeps an eye on what customers say about your products
Sales tracking Shows how much you're selling
Alerts Tells you when something needs your attention

Making a Plan to Improve

  1. Look at your numbers
  2. Find what needs to get better
  3. Make a step-by-step plan
  4. Follow your plan

Checking and Changing

  1. Look at your numbers often
  2. See what's getting better
  3. Find what still needs work
  4. Change your plan if you need to

Wrap-up

Keeping track of your Amazon seller numbers is key to doing well in online selling. By understanding and working on these important numbers, you can:

  • Do better on Amazon
  • Sell more
  • Build a good name for your business

Here's a quick look at why watching these numbers matters:

Why It's Important How It Helps
Spot problems early Fix issues before they hurt sales
Make smart choices Use facts to guide your decisions
Improve your selling Find ways to sell more and better
Keep Amazon happy Follow Amazon's rules

The 10 main Amazon seller numbers we talked about are big helpers in seeing how you're doing and making choices based on facts. To use these numbers well:

  1. Set goals for what you want to improve
  2. Use Amazon Seller Central to check your numbers
  3. Try other tools that can help you track things
  4. Make a plan to get better
  5. Keep checking and changing your plan as needed

Don't forget how much these numbers can help your Amazon business. With the right tools and plans, you can:

  • Find ways to do better
  • Make your business run smoother
  • Grow your sales

FAQs

What is the most important metric for Amazon?

There's no single "most important" metric for all Amazon sellers. Different businesses may focus on different numbers. However, here are five key metrics that many sellers watch closely:

Metric What it shows
Profit How much money you're making
ROI How well your investment is paying off
Conversion rate How many visitors buy your product
Inventory Performance Index How well you manage your stock
Account Health Rating How well you're following Amazon's rules

The conversion rate is often seen as very important. It shows how many people who look at your product end up buying it. A low conversion rate might mean:

  • Your product listing needs work
  • Your prices aren't right
  • Customers aren't happy with something

By making your conversion rate better, you can sell more and make more money.

In the end, the most important metric is the one that helps you reach your business goals. By watching the right numbers, you can:

  • Find what needs to get better
  • Make smart choices based on facts
  • Help your business grow and do well

Related posts

Read more

Built on Unicorn Platform