Amazon metrics are more than simple random digits you should check whenever it is convenient for you. These numbers are the pulse of your business, giving you invaluable insights into your customers’ behaviors, product performance, and market trends.
From conversion rates to customer feedback, every metric gives you a clear idea of what’s working and what needs tweaking in your Amazon storefront. If you’re new to the platform, these digits are crucial for helping you learn how to sell on Amazon KSA successfully.
Whether you’re a seasoned seller or a newbie, embracing and mastering Amazon metrics is the key to steering your business toward success on this e-commerce platform.
Key Amazon Seller Metrics to Keep Your Eye On
Below are the five metrics you should regularly track to run a successful store on Amazon:
1. Order Defect Rate (ODR)
ODR refers to the number of products returned to you. It measures the percentage of orders sent back to you because they were damaged or because the customer received incorrect or missing items.
This metric also includes the negative reviews or feedback you receive from your customers because of their experience.
These negative reviews can have a huge impact on your brand since they indicate your customers are dissatisfied with your products or services.
An order is considered defective if a customer:
- Files a chargeback or reversal of payment.
- Claims an A-to-Z guarantee (Amazon offers this to assure customers their orders are delivered in a timely manner and good shape. When the seller fails to do this, Amazon steps in to resolve the issue.).
- Writes a one- or two-star review on your store.
All Amazon sellers need to maintain an ODR below 1%. If it goes higher, the platform may limit your selling privileges and even suspend your product listings.
A high ODR also means that online shoppers can see many one- or two-star reviews and read negative reviews on your page. These details can turn them away, causing you to lose potential customers.
Monitoring your ODR can help you keep it at less than 1% and avoid the repercussions of having a high one. This is because when you’re nearing or exactly at this mark, you can take measures to improve it. These include improving your packaging and shipping services, responding to negative feedback, and reviewing your product listing.
If you want to maintain a good ODR, check it at least once a week.
2. Buy Box Percentage (BBP)
The BBP is one of the crucial site performance metrics you should monitor as an Amazon seller. It indicates how often your store shows up as an option for shoppers searching for your products.
If your brand doesn’t appear on the buy box, it means most shoppers are unaware of your store and are unlikely to visit it and purchase the product from you.
You can increase your chances of appearing on the buy box by obtaining more positive product reviews, offering fast-shipping options, promptly responding to customer queries, and improving your overall customer service.
When you improve your performance on Amazon, you increase your buy box percentage and chances of selling more products.
3. Inventory Performance Index (IPI)
The IPI is a metric Amazon uses to evaluate how sellers manage their inventory. It covers the following integral factors:
- Excess inventory – products exceeding 90 days of supply based on the predicted demand.
- Stranded inventory – products that are not selling fast and taking up storage space.
- Sell-through rate – a metric that indicates how quickly you sell your products.
- In-stock rate – the amount of time your inventory has been in stock in the past 30 days.
The IPI ranges from 0 to 1000, with a high score indicating you are managing your inventory efficiently and meet the Amazon FBA Saudi Arabia requirements.
4. Product Ranking
Amazon’s search algorithm determines the order in which products appear in search results. Several factors influence this ranking, including sales velocity, customer reviews, and keyword relevance.
You can assess your visibility to potential customers when you track your product ranking. You’ll know if your store shows up on the top spots of Amazon and if you have a good chance of selling your merchandise.
You can check your product rankings quickly by accessing Amazon’s reports. The ranks are updated hourly, which means you can see their performance in near real-time.
If your product rankings are low, you can boost them by optimizing your listings with relevant, high-performing keywords, highlighting positive customer feedback, and implementing other search engine optimization (SEO) practices. Learn more about implementing effective SEO to maximize your product’s visibility and attract more customers.
5. Pre-Fulfillment Cancel Rate (PFCR)
The PFCR represents the percentage of orders canceled before they are shipped. High PFCR usually indicates logistical issues, inventory management problems, and inaccuracies in product listings, all of which can affect your seller performance metrics and reputation.
Regularly monitoring your PFCR helps you identify patterns, address underlying issues, and streamline your operations to ensure you fulfill all orders promptly and accurately.
To maintain a healthy PFCR, improve your inventory management, process orders in a timely manner, and communicate with your customers efficiently. Also, prioritize customer satisfaction to lower the risk of getting negative feedback.
Keep in mind that a low PFCR can boost your seller metrics and increase trust and loyalty among your customers at the same, enabling you to enjoy long-term success on the Amazon marketplace. If you are an Amazon seller, take note of these metrics and keep track of them religiously so you can make improvements that will help you enjoy success in this marketplace.
