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Understanding Amazon Business Metrics for Sellers

Have you recently launched your product on amazon? They say attaining success is hard, but maintaining it is harder. You cannot expect your products to sell on their own after being launched. To maximize the revenue, you need to keep an eye on various factors like which marketing strategies are working well, which of the products are the best sellers, and advertising, etc.

What are the key performance metrics for a seller in general?

With a vast range of metrics based on which performance of the seller account can be measured, it usually becomes overwhelming for the seller to identify which of the metrics can be used to determine the success of their account. However, this depends on the goals of the business, but some key performance metrics need to be taken into consideration by every seller.

Order Defect Rate (ODR)

ODR is the total number of people whose work experience with you did not go well.

Amazon order is considered faulty if

  1. An A-Z guarantee claim is made

  2. The buyer leaves a negative feedback

  3. A chargeback claim is made by the customer

The more negative reviews, chargebacks, or returns you get, the fewer customers will trust you.

Product Ranking

Product ranking is arguably considered one of the most significant metrics on Amazon. Shoppers are there to buy a specific product. However, 40% of the customers won't scroll beyond the first page. Hence product ranking to move to the first page is crucial, and your aim should be for Best Seller Ranking for getting best results. This ranking is calculated by sales volume.

Seller Rating

Seller Rating on Amazon provides an overview of your performance. How good was customer feedback, fulfillment? It is updated hourly and includes factors like time of shipping, orders canceled, chargebacks, customer inquiries, reviews, and guarantee claims. Keep yourself updated and improve your rating.

Inventory Performance

A newly introduced metric by Amazon for its sellers to determine how well sales are being driven by stocking popular products and the efficacy of on-hand inventory handling. Its score ranges from 0 to 1000. A score above 400 shows growth in business whereas, below 350 it indicates problems. Amazon will limit storage for sellers with less inventory performance index so, take actions to improve your score.

Units Ordered

The number of units ordered in a day, week, or month is a constructive way to find out how effectively your Amazon business is going on. It is considered a better method than counting your total orders because, in many cases, Amazon customers will buy multiple units in a single order.

Bottom line

Hope the article explains everything from the grass-roots level for those who do not have good know-how about the performance metrics of a seller on amazon. These metrics have a huge role in the success of your seller account. Therefore, it is crucial for a seller to regularly monitor and analyze the data of these metrics to pinpoint the problem, if any, and eventually solve it.


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