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The Key Metrics For Amazon Sellers

You have put together a good product and have thrown open the doors online. Alas! The clicks and the sales generated are far below your expectations. Sellers on Amazon are left perplexed and not able to fathom what appears to be going wrong. Is it the product? Is it the product description? The image used in the ads? The customer offers or the listing performance? Amazon offers you a deeper insight through Amazon analytics about your seller account and the products. What to pick and what not to is a puzzle one needs to solve. Below are some tips that can be instrumental in becoming the most searched and performing products.

Amazon runs a unique algorithm for throwing up results to the search performed by the users. As a seller, you must know how Amazon SEO works when the search is performed on their platform. Most sellers fall short due to little or no knowledge of the search algorithm and face a situation of low sales or the account getting barred. How does this Amazon algorithm run? Remember that the key to success on Amazon is customer-centricity. Whenever a potential buyer searches for a product, the Amazon algorithm searches the product on the Amazon product listing. It then throws up results that are relevant as per the search words entered. As an Amazon seller, you need to focus on the three integral components that make the algorithm

  • Conversion rate- It is the measure of sale of the product. More sales transform to a higher ranking.

  • Product Relevancy - This is how relevant is the product in response to the search performed. The title of the product, high-resolution image, and product description improve the chances of making it to the product relevance list.

  • Customer centricity and satisfaction- This is reflected in the Customer satisfaction index. Amazon gauzes it through the feedback about the seller, the customer review on the product, and the order defect rate that is the percentage of defective products on the total product sold.

Now you are familiar with the algorithm; it is time to take a deep dive into the metrics that are instrumental in driving the required traffic and conversion for your products.

Metrics For Success- A Deep Dive

Successful sellers keep a close watch on the result on the following parameters:

  • Search results of the products

  • Listing of the products

  • Customer response to the ads.

Search Results Of The Products

Search performance relates to how well your product shows up when a potential buyer runs a search. The words and the image used for denoting the product make all the difference. A title laced with Amazon keywords has a better chance of visibility. Avoid being crafty while writing the title. It is a recommended practice to be factual and honest and leverage the Amazon keyword tool. A clear title and an engaging image of your product are essential in driving traffic to your Amazon product page. The more the traffic, the more is the engagement and more the chance of a conversion. The way to monitor search performance is to track the session and session percentage. Whenever a seller lists a product, it gets tagged with a unique identification number from Amazon called the ASIN( Amazon standard identification number). The trick to optimize the search performance is:

  • Gauge the incremental change in the traffic flow by altering the levers like title, image, the product's selling price, Et al., changing one and keeping the rest the same.

  • Comprehend which product out of your kitty has the high sessions. It helps in pruning the existing product line on the seller platform and deciding where to increase or decrease the investment. Track the count of sessions per product over the total sessions for all the products, and you can identify your top-selling item.

  • Keeping an eye on the user's reviews is a proven way to identify the product's performance. Quality and number of reviews talk about the product's popularity and drive higher clicks.

Listing Of The Product

As a seller, you need to add a product description to your product before showing it on Amazon. A good product description engagingly describes the product and impacts the search results on Amazon product listing. A good product description is persuasive to initiate the purchase. Sellers can get visibility about the performance of the product by referring to the unit session percentage. Unit session percentage is the percentage of people buying the product to the people visiting the product page. Sellers can improve the product performance by calibrating the product description and its impact on the traffic generated.

Customer Response To The Ads

The sellers should measure their ads for Amazon for effectiveness and efficiency on an ongoing basis. Advertisements on Amazon should be data-driven. Some data points that are useful in measuring are click-through rates and keeping an eye on the advertisement cost of sales (ACOS).

Click-Through Rates

It is the ratio between the users clicking the link in an ad to the users finally landing and viewing the page. This gives the required optics about how engaging the ad is for the product. Lower the CTR lower is the ad engagement. The recommended value for a good CTR is any value above 0.15% for an ad.

Advertising Cost Of Sales ( ACOS)

ACOS refers to the ratio of money spent on ads to the sales generated through the advertisement. The aim is to maximize the return on every rupee invested and utilize the Amazon tools to drive purchase.


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