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Key Metrics D2C Businesses Should Track On Amazon To Boost Their Sales

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Saffron Edge

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Jan 20, 2022

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6 min read

According to Statista, the monthly mobile audience on the Amazon marketplace app is around 98 million! It is no surprise how popular Amazon has become among customers. According to a survey by Feed Advisor, from a sample size of 2000+ customers from the United States of America, around 89% of the shoppers say that they are more likely to purchase items from Amazon over any other eCommerce website. There’s no denying that this marketplace has gained immense trust among online shoppers. Currently, the marketplace boasts a high percentage of loyal and repeat customers. Winning consumer trust is the foundation of building a successful business, especially when selling online. Today, direct-to-consumer brands need to be consistent and honest with their product experiences, even on Amazon. Being an e-commerce business owner is not easy in this digitally growing world. As an e-commerce business owner, you need to make sure that wherever you are selling, be it Amazon or your website; you have the metrics of your e-business in control. It is essential as a business owner to have complete knowledge of products, marketing strategies, and digital presence. Metrics can be tough to decipher and decode. It is essential to know which ones to focus on and improve. It is also necessary to know which metrics would take businesses far and which ones can be ignored. As a seller, you should put your time and effort into giving you significant results and helping your business the most.  Amazon metrics work the same. While there are multiple Amazon metrics, most sellers do not know which ones to use and how. Before we move on to the critical Amazon metrics, it is essential to understand what Amazon metrics are.

What are Amazon metrics?

One of the significant advantages of Amazon Performance Metrics is that it helps businesses to work towards enhancing consumer satisfaction and significantly improves the customer experience of products on Amazon. Amazon metrics help sellers come off as high-quality and allow customers to assess the quality of products and the sellers.  Amazon metrics help increase sellers' sales and help them increase ranking and general visibility on the Amazon website. These metrics help sellers know what they might be doing wrong and what must be done right.  amazon (1)

Source: Pexels

Amazon metrics can help you identify what can be improved to strengthen your Amazon account and help form better marketing strategies and achieve high consumer satisfaction. Following Amazon metrics ultimately would help sellers in increasing profits and sales. It also allows sellers to get into selling in private and gated categories.  As a seller follows Amazon metrics to sell, it becomes easier to satisfy consumers and be an Amazon-appropriate seller. It also increases the chances of selling specific products. It is not easy to get Amazon to approve you, like electronics, food, beauty, and health.  Amazon's performance metrics affect sellers' sales and their reputation on Amazon in general. If an account has to be restored and is in talks of being suspended, the seller's metrics are taken into account while making a decision.  Sellers need to understand and check Amazon performance metrics regularly to keep up with the product sales statistics, track the business on Amazon, and work on and improve in the areas where the sellers lack.  Ultimately, Amazon's performance metrics take sellers a long way forward along with increasing their sales. Amazon metrics ensure the long-term stability of sellers with Amazon. Individual and pro sellers can both benefit from Amazon's performance metrics. 

What are some key Amazon metrics to help the sellers?

As Amazon metrics can become the defining point in continuing business with Amazon, let's look at some key Amazon metrics. 

Unit Session Percentage Rate

The Unit session percentage rate is a widely used term for conversion rate. It is the number of people who – out of all the people visiting your product on Amazon – actually end up buying the products. In simpler terms, it means the number of people you can convert into buyers out of all the potential buyers that end up landing on your product.  A high Unit Session Percentage Rate would mean more people are buying your product, which indicates that your product listing is well-done and your product is coming out to be attractive to the customers. On the other hand, a low conversion rate would indicate that you need to improve your listing and add more pictures or content to sell your product better. A high conversion rate leads your products to move up the pages and receive a high ranking. 

Pre Fulfilment Cancellation Rate

The pre fulfillment cancellation rate refers to the number of customers who cancel already placed orders without being fulfilled.  Sellers must ensure that the products listed for sale are stocked and present in the inventory. Otherwise, if a customer places an order and the seller fails to acquire and send it, the order would have to be canceled before delivery, and this hampers your credibility.  The maximum pre fulfillment cancellation rate for Amazon is 2.5%, and if a seller keeps doing the same and the rate rises above this, Amazon considers such businesses to be unreliable. 

Best Seller Rank

Every product listed for sale on Amazon has a Best Seller Rank. It is the number of units a product has sold compared to all the other products in a particular category. Hence, number one rank would mean that that specific product has been sold the most in a category, rank two means that that product has been sold the second most in the category, so on and so forth.  amazon (2)

Source: Pexels

Best Seller Rank is one of the most critical metrics; it explicitly shows the number of units a product sells compared to its competitors. A low best seller rank – which is good – means that the product would receive high traffic, and the seller can use this traffic to increase the number of customers. 

Inventory Dispatch Rate

Inventory dispatch rate only affects those Amazon sellers who keep an inventory with Amazon to sell further and dispatch the products.  Inventory dispatch rate keeps track of how well a seller maintains their inventory with Amazon.  A few things to keep in mind to maintain a healthy inventory dispatch rate is that the inventory should neither be overstocked nor be understocked, especially during peak sale seasons. It leads to the inventory dispatch rate falling. Another essential thing to remember is that problems with product listings can hamper the sale of a product, which leads to a decrease in inventory dispatch rate. 

Order Defect Rate 

Order defect rate is another crucial Amazon metric to take care of. It is the number of people who are dissatisfied with your product or unhappy with the delivery.  Amazon tracks order defect rates very closely and takes them seriously.  There are three order defect rates: A-to-Z guarantees claim rate, Credit card chargeback rate, and Negative feedback rate.  Amazon has laid down guidelines to decide what claims are against a seller's order defect rate and hold sellers accountable and responsible for defects in their products.  The order defect rate is calculated based on all the customers that a seller has sold to in the last 60 days, and if the rate is over 1%, then Amazon is likely to suspend or deactivate such business accounts. 

Buyer Seller Contact Response Time

Contact response time refers to the number of messages that a seller replies to, of the consumers, within 24 hours of receiving the messages. Amazon requires sellers to respond to the customers within 24 hours of receiving the message, and if the sellers take longer than that, it would have a negative response on the contact response time.  No matter what the day is, the 24 hour response time is a standard that Amazon follows to deliver good customer service, and Amazon expects sellers to follow the same. Hence, sellers must regularly check customer messages and respond to them to stick with Amazon's contact response time. 

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Saffron Edge can help your business utilize consumer data and metrics to target relevant shoppers. Our Amazon marketplace strategies are developed to lower your ACOS and boost your ROAS. Contact our experts today to know more!