To grow your business you need to understand how it is performing. By using the following key metrics – you can see which areas or products need boosting. In this article we cover the top 7 metrics you need to monitor for your Amazon business.
Tip 1 Overall Sales
At the same time each week, do an analysis of your past 7 and 30 day sales. I like to use Monday’s to review all sales statistics for my account and products.
You can use the reports produced by CashCowPro to get all your data by SKU in one place. Check your sales trends bearing in mind any seasonality.
To know exactly what’s going on with your Amazon seller account you need to check each SKU in detail individually. Look out for products with increasing or decreasing sales.
Your products may naturally go up 10% or down 10% on any given day on Amazon – but check out the reasons for larger swings over 7 or 30 days. Make adjustments to your products based on how they are selling. Usually a small price drop or even increase can boost the sales of your items.
Tip 2 Conversion Rates
Download the conversion rate report for your account, or check by SKU easily in CashCowPro. Track week to week changes in your conversion rate.
It will swing up and down quite a lot, so you want to check the general trend over seven days or more. Keep optimizing your products to get your conversion rates over 20%.
Focus on the SKUs that have 10% or less conversion rate. Anything under 5% is critical. Some people are able to achieve 30% or even 40% + conversion rates. The higher your conversion rate – the better you will rank over time.
Tip 3 Number of Products
Once you optimize your listings, the easiest way to make more money on Amazon is simply to add more products.
If you go from 5 to 10 products you double your sales while also reducing your reliance on any single product. Continually research new products and develop new items so that when you build up the cash you can quickly get them into the Amazon marketplace.
Tip 4 Contact Response Time
Make sure you or an outsourced member of staff check the customer service emails at least twice a day at fixed times. You can check your response time on the account health section in Amazon Seller Central.
Keep customer service under 24 hours at most, and ideally respond within 12 hours on average. The better your service the more likely you are to get positive reviews and prevent negative reviews.
Tip 5 Account Health
Each week, log in to Amazon Seller Central and check all of your key statistics for your account health.
Pay special attention to any yellow or red sections, and be sure to fix these immediately. Continual poor performance could result in your seller account being banned.
Tip 6 Seller Feedback
Periodically review your overall seller feedback. Remove any negative reviews that relate to products.
I recommend you remove any 4-star and below reviews to keep your account average high. If a review mentions your product – or a late delivery by Amazon usually these can be removed from your account by Amazon.
Tip 7 Profits
Last but not least, check the profits of each SKU as well as your total profits for your business.
Take into account all your overheads, including off-Amazon marketing, freight costs, and any other costs related to business. Check this in detail at least monthly.
Set yourself targets for 3 and 6 months and work consistently to hit them.