So many Amazon stores are vying for the same business. It takes a formidable effort to really make yours stand out from the competition. You need to not only know who your customers are but recognize the value in your products so you can keep your business on an upward trajectory. That means thinking outside the box. You can’t just do the bare minimum and expect your Amazon seller account to flourish on its own.
Rather, to identify opportunities for growth and improvement, you have to look closer. In many cases, you already have access to everything you need to take your Amazon store to the next level. By leveraging Amazon analytics, you can supercharge your business. But you might not be accustomed to tapping into your own data. So here’s a bit of a breakdown of Amazon seller analytics and how they can foster growth in your Amazon FBA business.
Why Amazon Analytics Are So Essential
As with so much in business, you want to go where concrete data leads. For instance, you should not go all-in on a specific product or type of product without confidence in its performance. Likewise, you want to continue this line of thinking with regard to your Amazon store’s future. To ensure that your business stays on track, you should be making data-driven decisions to minimize your risk and maximize your profitability.
To do this, you need to ensure you have systems in place that allow you to effectively track and analyze data so you can dig deeper into exactly what's happening with your Amazon store. We’ll get into what key performance indicators you should keep an eye on next, but first, it’s vital that you understand how eCommerce data -- and the resulting analytics -- can make a tremendous difference in your business.
When you apply data analytics to how you operate your Amazon store, you will be able to identify and fund the tactics driving most of your sales. Moreover, you’ll be able to maximize your profits by cutting costs where you discover necessary. Knowing which paths are worth the investment is an effective way to constantly keep your Amazon store on the right course toward a brighter future.
Which Key Performance Indicators to Watch
Key performance indicators -- or KPIs -- are metrics you can use to assess the performance of your business. Of course, which KPIs are worth paying the closest attention to varies wildly depending on the nature of your industry and business. So, for an Amazon store like yours, you’ll want to keep a close eye on a select few KPIs. These metrics will help you understand how your store is doing and what to do next. Let’s break them down by category.
- Products: Your products are, of course, the lifeblood of your Amazon business. Without them, you don’t have a store at all. So it shouldn’t surprise you we’re turning to the product side of things first. We could spend a while simply going over all the KPIs related to your inventory. Figures like sales velocity and seasonality are incredibly important. Likewise, you’ll want to pay special attention to your inventory. How much you have in stock will inevitably affect your sales. And in particular, you should look at aging inventory and how quickly certain products are being ordered and turned around.
- Customers: When it comes to fostering growth, it all comes back to your customers. So customer behavior analytics is a key part of growing your Amazon store. Some of these metrics include the number of sessions, online engagement, and customer feedback. On that last one, you should pay extra attention to rating and reviews, as these can give you a great snapshot of how your business is connecting with your target customer base. Remember, if you don’t devote enough time to your relationship with your customers, you’re missing out on the opportunity to create a lucrative long-term bond.
- Traffic: Whether you are analyzing Sessions or Page Views, it is vital to understand how many Amazon customers are viewing your product on any given day. It is no use having the best product on Amazon if nobody sees it. Monitor your traffic on a regular basis to better understand how much exposure Amazon is giving you and how often your product is being viewed. Use this data to make appropriate adjustments to help improve your chances of making sales.
- Conversion: Perhaps the most basic KPI, on-page conversion naturally has a big role to play in your Amazon store. If your conversion is stalling or falling, you need to be sure to take action quickly. Amazon tracks conversion using a KPI called ‘Unit Session %’. This is a calculation of the number of units you sell as a percentage of sessions. Advanced third-party Amazon tools such as Seller Spike build upon this and can provide you with an accurate conversion rate too. Track changes in conversion rate on a regular basis and use this information to help you discover ways to improve your conversion.
- Marketing: As you’ve probably discovered by now, the above KPI’s are all very much interrelated and should all be used in unison when making strategic decisions. One of the most important strategic decisions any Amazon seller should be making is around marketing - whether you are utilizing paid advertising, social media, or keyword optimization, use the above KPI’s alongside more traditional marketing indicators to truly understand how your performance is being affected by the changes you make.
- Pricing: There is no denying that today’s online shoppers are particularly price-conscious. As a seller, it is crucial that you do not simply price your products based on your own business needs, but also ensure they are aligned with the market and competitors. Don’t be afraid to try different pricing structures, tweaking them as you go along. Making changes to your pricing while reviewing KPI’s such as sessions and conversion rate will ensure you find the perfect price for your products.
How Seller Spike Can Help
With any luck, the information above has shed some light on how you can use key performance indicators and analytics to make important selling decisions on Amazon. Seller Spike helps customers just like you with advanced analytics to fuel your own success and grow your sales on Amazon. Whether you are a private label seller, or a retail arbitrager buying wholesale, analyzing your performance is critical to long-term success. Seller Spike provides you with the insights you need to ensure you are making the most out of the Amazon marketplace. And the best part? You can get started for free.