I know that managing a brand on Amazon is no walk in the park. Whether you’re an experienced Amazon seller or just starting, you must constantly monitor your business to ensure its success and growth.
Through my years of helping Amazon sellers with IP and trademarks-related issues, a poignant part of this has been efficiently monitoring your brand. I’ve decided to compile some of the tips given over time.
My goal in this article is to show you how to go about monitoring your brand on Amazon and the important metrics you need to track as an Amazon seller.
Monitoring Your Brand on Amazon
Monitoring and protecting your brand on Amazon involves keeping a close eye on various aspects of the business to ensure a positive and consistent brand presence. This would usually include looking out for infringement as well as understanding the key performance indicators (KPIs) affecting your business sales and profits.
KPIs are measurable metrics that businesses use to evaluate and track the performance of specific areas within their operations. Regarding Amazon, various KPIs can be essential for measuring the success and effectiveness of your business on the platform.
How to Monitor Your Brand on Amazon
Careful monitoring of Amazon KPIs will enable you to set clear goals for your brand, develop strategies to achieve these goals, and make data-driven decisions along the way. So, here are some of the important metrics to monitor on Amazon:
Sales and Revenue
Your Amazon sales revenue is perhaps the most important metric to evaluate the overall performance of your brand. This KPI reflects the total revenue generated from the sale of your products on Amazon, making it a key indicator of overall business success and growth. Reviewing your sales data helps you to identify the following:
- High-performing products
- Peak periods
- Emerging market trends.
You can monitor sales revenue through your Amazon Seller Central account. After signing in, Click Reports > Business Reports > Sales and Traffic. This will show you your Ordered Product Sales (your sales revenue), Units sold, Sessions, and B2B sales.
Aside from your sales revenue, you should also focus on the number of units sold to understand your product demand and popularity. By knowing the number of units you sold within a particular time frame, you can decide whether you need to expand your inventory to meet customer demands.
Inventory Performance Index (IPI)
IPI measures how well you manage your inventory and is an important metric to consider, especially if you’re using FBA (Fulfillment By Amazon). Your IPI score is calculated by considering factors like:
- Excess inventory
- FBA Sell-through rates
- FBA In-stock rate
- Stranded inventory
You must strive to maintain a high IPI above 400, to avoid high storage fees or FBA storage restrictions. A high score also ensures your products are readily available without being overstocked. If your index score is low, focus on improving areas like excess or slow-moving inventory.
You can check your IPI score in the Inventory Performance Dashboard on Seller Central or your FBA dashboard.
The conversion rate of your account indicates the percentage of visitors who make a purchase. This metric helps you see just how effective and appealing your product listings are and measure the overall customer experience. You need to monitor this KPI at various stages to find the areas where customers are dropping off. These stages include:
- Product views
- Add-to-cart rates
- Checkout completion
If your products get viewed, it may mean that your product title and image are good. However, if customers don’t add your products to the cart, you may need to optimize your description or pricing or implement another strategy to increase the conversion rate.
You can check your conversion rates by clicking Business Reports > Sales and Traffic in your Seller Central account.
Order Defect Rate (ODR)
Your ODR is the percentage of your orders with defects. It refers to the number of people who have had bad experiences with your store, leading to negative feedback, A-to-Z Guarantee claims, and credit card chargebacks. These actions can have negative consequences on your brand.
If your ODR is high, it means you need to review your customer service practices and improve in necessary areas. You need to maintain an ODR of less than 1% monthly to increase customer satisfaction and prevent any issues with Amazon, including warnings and account suspension.
You can find your ODR on the Customer Metrics Page of your Seller Central.
Product Reviews and Seller Feedback
Positive product reviews build customer trust, influence potential customers to purchase your product, and boost your product visibility. Therefore, you need to monitor your product reviews and those of your competitors to measure customer satisfaction, identify issues with your product or service, and build your brand reputation.
Seller feedback is quite different from product reviews. While the latter reflects how customers feel about your products, the former reflects how customers feel about their experience with you, the seller. Therefore, you need to monitor your seller feedback to improve your credibility. You should also encourage satisfied customers to leave reviews to enhance your brand image.
To check your reviews and feedback in Amazon Seller Central, click Performance > Feedback > Feedback Manager.
How Can I Improve My Conversion Rate on Amazon?
You can improve your conversion rate on Amazon by optimizing product listings to ensure your product titles, images, and descriptions are accurate and compelling. Also, ensure your pricing is competitive and reduce your delivery time. You should also encourage customer reviews and address concerns promptly and professionally to build trust.
How Can I Boost My Account Health on Amazon?
To boost your account health on Amazon, you must present your products accurately, promptly respond to customer inquiries, ship orders on time, sell quality products, address negative feedback professionally, and comply with Amazon’s policies and Code of Conduct.
Also, monitor your Account Health metrics such as:
- Cancellation rate
- Order defect rate
- On-time delivery rate
How Do I Monitor My Business With the Amazon Seller App?
The Amazon Seller App allows you to monitor your business by analyzing your sales, responding to customer messages promptly, and managing your offers and inventory. The app allows you to create listings, manage advertising campaigns, and receive pricing alerts.
In the USA, brand owners can pursue legal action against infringers through mechanisms like the Digital Millennium Copyright Act (DMCA) and the Anti-Cybersquatting Consumer Protection Act (ACPA).
Consistent monitoring of your brand’s performance, using the Amazon KPIs discussed above, enables you to make informed decisions that will improve your success and growth rate on Amazon. You can contact a professional business analyst to help monitor your seller metrics and improve your overall performance.