Want to succeed as an Amazon seller? Start by tracking these 10 key metrics:
- Conversion Rate (CVR): Measures how many page views turn into sales. Higher CVR boosts rankings.
- Ad Cost of Sale (ACoS): Tracks ad spend efficiency. Aim for a balance between profit and growth.
- Total Ad Cost of Sale (TACoS): Shows the impact of ads on both paid and organic sales.
- Inventory Performance Index (IPI): Helps manage stock levels and avoid storage penalties.
- Search Term Rankings: Determines your product’s visibility in search results.
- Click-Through Rate (CTR): Measures how often shoppers click on your listing.
- Order Defect Rate (ODR): Tracks customer complaints – must stay below 1% to avoid penalties.
- Return on Ad Spend (RoAS): Evaluates how much revenue your ads generate.
- Customer Reviews: Directly impacts sales and product rankings.
- Sales Speed: Tracks how quickly your products sell, influencing rankings and visibility.
Quick Tip: Regularly monitor these metrics in Amazon Seller Central to make data-driven decisions. Focus on improving one metric at a time for steady growth.
Comparison Table: Quick Overview of Metrics
| Metric | Purpose | Ideal Target/Benchmark |
|---|---|---|
| Conversion Rate (CVR) | Page views to sales ratio | 10–15% (74% for Prime products) |
| Ad Cost of Sale (ACoS) | Ad efficiency | 15–30% for profit, >40% for awareness |
| TACoS | Total ad impact on revenue | Decreasing trend indicates efficiency |
| IPI | Inventory management | Score of 500+ |
| Search Rankings | Product visibility | Higher rank for key search terms |
| Click-Through Rate | Listing appeal | >0.5% |
| Order Defect Rate | Customer satisfaction | <1% |
| RoAS | Ad spend returns | 4:1 or higher |
| Customer Reviews | Product reputation | 4–5 stars |
| Sales Speed | Product turnover | Consistent, high velocity |
Tracking these metrics ensures better performance, higher profits, and long-term success on Amazon.
Amazon FBA Metrics Explained: How to Track & Boost Your …
1. Conversion Rate (CVR)
Conversion Rate (CVR) represents the percentage of page views that lead to a sale. This metric directly impacts your product’s ranking and visibility on Amazon.
On average, Amazon listings achieve a CVR of 10–15%. However, products eligible for Prime often perform much better, with conversion rates reaching around 74%.
To calculate your CVR, use this formula:
Conversion Rate = Total Orders ÷ Total Page Views
You can find this data in the following ways:
- Seller Central: Go to Reports > Business Reports > Detailed Page Sales and Traffic Reports.
- Vendor Central: Navigate to Reports > Analytics > Traffic Diagnostics.
For example, Jungle Creations‘ Marshmallow Roasting Sticks achieved an impressive 18.65% CVR due to their niche appeal. On the other hand, their Washable Pee Pads in May 2021 saw a lower 8.72% CVR, likely because of tougher competition.
"Increasing your conversion rate on Amazon is imperative to your success as a seller. If customers visit your listings but click out without making a purchase, that can damage your organic keyword ranking and overall Best Sellers Rank." – Brian Connolly, Ecommerce Expert & Writer, Jungle Scout
How to Boost CVR
Try these strategies to improve your conversion rate:
- Optimize Product Listings
Use clear, high-quality images, write bullet points that focus on benefits, add detailed descriptions, and create engaging A+ content. - Price Competitively
Monitor competitor pricing, test different price points, offer discounts, or create bundle deals to attract buyers. - Leverage FBA
Make your products Prime-eligible to build trust, improve delivery speed, and enhance customer service.
A strong CVR tells Amazon that your product satisfies customer needs, which can lead to better organic rankings through their A9 algorithm.
Make it a habit to review your CVR weekly. If you notice a sudden drop, investigate potential issues like pricing changes, listing quality, or competitor actions.
Up next: Learn about Ad Cost of Sale (ACoS) and how it connects advertising spend with sales performance.
2. Ad Cost of Sale (ACoS)
ACoS measures how effectively your ad spend turns into revenue. For example, if you spend $100 and generate $500 in revenue, your ACoS is 20%.
ACoS = (Ad Spend ÷ Ad Revenue) × 100
Understanding ACoS Targets
Your ACoS target depends on your business goals:
| Goal | Target ACoS | Best For |
|---|---|---|
| Maximum Profit | 15–30% | Established products, high-margin items |
| Brand Awareness | Above 40% | New product launches, expanding market reach |
Break-Even ACoS
If your product costs $20 to make and sells for $50, your profit margin is 60%. Any ACoS above 60% eats into your profits.
"Whatever your pre‐advertising profit margin is for a given product is the maximum amount that you can spend on advertising and still turn a profit. Or, put another way, it’s your break‐even ACoS." – Saras Analytics
Improving Your ACoS
- Keyword Optimization
Focus on buyer-intent keywords. For instance, targeting "Recyclable Organic French Roast K-Cups Fair Trade Certified" instead of just "K-Cup" helps attract more serious buyers. - Bid Management
Regularly review and adjust bids based on performance. Lower bids for keywords with high ACoS, and invest more in those driving better results. - Product Listing Updates
Enhance your product pages with high-quality images, engaging titles, detailed bullet points, A+ content, and videos.
When Higher ACoS Makes Sense
Certain scenarios justify a higher ACoS, such as launching new products, running seasonal promotions, gaining market share, or boosting brand recognition.
In 2021, over 75% of Amazon sellers used PPC advertising, making ACoS management essential for maintaining profitability. These strategies can help you fine-tune your approach, paving the way for a deeper dive into TACoS.
3. Total Ad Cost of Sale (TACoS)
TACoS builds on ACoS by showing the full impact of your ads, including both paid and organic sales. While ACoS focuses on ad spend compared to PPC sales, TACoS provides a bigger picture of how ads affect your overall revenue.
TACoS Formula:
TACoS = (Total Advertising Cost ÷ Total Revenue) × 100
Here’s a quick breakdown of TACoS trends and what they mean:
| TACoS Trend | Meaning | Suggested Action |
|---|---|---|
| Decreasing | Ads are becoming more profitable | Stick with your current approach |
| Flat | Campaigns are stable or stalled | Look for ways to optimize |
| Increasing | Ads are less efficient | Act quickly to improve |
Optimizing Your TACoS
- Track the Link Between Ads and Organic Sales
Your ad spend can influence organic sales, either positively or negatively. Keep an eye on organic sales when cutting ad spend – if they drop, it could signal a negative cycle starting.
- Make Ads More Efficient
Focus on improving:
- Click-through rates (CTR)
- Cost-per-click (CPC)
- Conversion rates (CVR)
- Average order values
- Strengthen Organic Sales
Enhance your product listings by focusing on:
- Better images
- Clear, engaging descriptions
- Effective search terms
- Actively managing reviews
Adjusting Your Strategy
A low TACoS might mean you’re not investing enough in ads, while a high TACoS could show overdependence on them. Balance your spending to ensure ads support organic growth without taking over.
For instance, if you spend $5,000 on ads in a month and your total revenue (from both ad-driven and organic sales) is $25,000, your TACoS would be 20%. This number helps you gauge whether your ad budget is driving overall business growth effectively.
Focus on trends rather than one-time numbers. A steady decline in TACoS often points to better ad efficiency and stronger organic sales over time.
Keep a close eye on your TACoS trends to make timely, informed adjustments.
4. Inventory Score (IPI)
The Inventory Performance Index (IPI) acts like a credit score for managing your inventory on Amazon. This score, which ranges from 0 to 1,000, directly affects your storage limits and fees. Since August 16, 2020, Amazon requires sellers to maintain a minimum score of 500.
Breaking Down Your IPI Score
Your IPI score is influenced by four main factors:
| Component | What It Measures | How to Improve It |
|---|---|---|
| Sell-through Rate | How fast your inventory sells | Boost listing visibility and adjust pricing |
| Excess Inventory | Stock exceeding 90-day demand | Remove or liquidate overstock |
| In-stock Rate | Availability of popular items | Keep 30–60 days’ worth of stock |
| Stranded Inventory | Unsellable items | Fix listing errors quickly |
Why Your IPI Score Matters
Sellers with high IPI scores often spend less than 1% of their revenue on storage fees. To put this into context, Amazon’s own inventory turnover averaged 8 times last year, showcasing the importance of efficient stock management.
By focusing on these factors, you can improve your score and reduce unnecessary costs.
How to Optimize Your IPI Score
- Check Your Score Weekly
Use Seller Central to monitor your IPI score every week. This helps you spot and address issues before storage limits kick in. - Keep Stock Balanced
Maintain a 30–60 day inventory supply to meet demand without overstocking. - Fix Stranded Inventory
Regularly check for pricing errors, ASIN restrictions, and listing problems. Address these issues as soon as possible to avoid unsellable stock.
"Optimizing inventory will reduce lost sales and inventory holding costs for you while simultaneously ensuring Amazon’s warehouses are stocked with the right products in the right quantities, which increases the utilization of its vast warehouse network." – Flexport Editorial Team
Adjusting for Seasonal Trends
Seasonal shifts can have a big impact on your inventory needs. Plan carefully during peak seasons to avoid running out of stock or holding excess inventory during slower months. Use historical sales data and demand projections to guide your strategy while maintaining the required IPI score of 500.
Amazon’s "Manage Excess Inventory" tool can help you address potential issues early, keeping your score intact and avoiding additional fees.
5. Search Term Rankings
Search term rankings play a major role in determining whether your product appears on the first page of results or gets lost in the crowd. This directly affects how visible your listing is and, ultimately, your sales.
Understanding Search Term Performance
Amazon Brand Analytics offers professional sellers a way to analyze how their products perform in search queries. To use this tool, you need a Professional selling account and enrollment in Brand Registry. Here’s what it tracks:
| Metric | What It Measures | Why It Matters |
|---|---|---|
| Search Term Position | Your product’s rank for specific keywords | Higher ranks mean greater visibility |
| Search Frequency | How often a term is searched | Helps identify high-traffic keywords |
| Click Share | Percentage of clicks your product gets | Shows how effective your listing is |
| Conversion Share | Your purchase rate compared to competitors | Reflects how well your product converts |
Tracking Tools and Costs
Several tools can help you monitor your search rankings and make data-driven decisions:
| Tool | Features | Starting Price |
|---|---|---|
| Keyworx | Track up to 5 keywords | Free |
| TopBSR | Multiple daily rank checks, supports US/CA/MX/BR markets | $15/month |
| MerchantWords | In-depth keyword analysis | $29/month |
Using these tools, you can gather actionable data to refine your listing strategies for better results.
Improving Search Rankings
Want to improve your product’s position in search results? Focus on these proven tactics:
- Optimize Product Listings: Use relevant keywords in titles and descriptions, ensure product details are accurate, and maintain competitive pricing.
- Manage Inventory Effectively: Avoid stockouts and process orders promptly to maintain rankings.
- Encourage Positive Reviews: High-quality reviews can boost your product’s visibility in search results.
"Optimizing your listings with the right keywords ensures customers can discover your products when they search on Amazon." – Chris Compean, Chief Executive Officer at Mayan
Measuring Success
One seller saw a 40% increase in quarterly sales after applying these search term optimization strategies. This shows how focusing on search terms can significantly enhance your overall Amazon performance.
Best Practices for Monitoring
To stay on top of your search rankings, review them at least once a week. Keep an eye on:
- Shifts in rankings for important keywords
- New competitors entering your niche
- Seasonal changes in search behavior
- How pricing adjustments impact your rankings
Search rankings can change quickly due to factors like inventory levels, pricing, and customer habits. Regular monitoring helps you respond to these changes and maintain strong visibility.
Next, we’ll explore how click-through rates can further refine your traffic and conversion strategies.
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6. Click Rate (CTR)
Click-Through Rate (CTR) shows how often shoppers click on your product listing after seeing it. It’s a key indicator of how appealing your product is within Amazon’s marketplace.
CTR Benchmarks
| Position | Average CTR | Performance Level |
|---|---|---|
| Top of Search | 2–5% | High |
| Mid-Page Results | 0.5–1% | Moderate |
| Product Pages | 0.2–0.4% | Low |
These benchmarks provide a guide to assess how well your listing is performing based on its visibility.
Tools to Track CTR
| Ad Type | Available Reports | Key Metrics |
|---|---|---|
| Sponsored Products | Search Term Report | CTR, ACoS, RoAS |
| Sponsored Products | Advertised Product Report | CTR, CVR |
| Sponsored Brands | Search Term Report Only | CTR, ACoS |
| Sponsored Display | Advertised Product Report | CTR, CVR |
These reports help identify areas where your listing could attract more clicks.
How to Improve Your CTR
Increase your CTR by focusing on these elements:
- Better Images: Use clear, high-quality photos with multiple angles and lifestyle shots to make your product stand out.
- Pricing Tweaks: Experiment with pricing strategies. For example, prices ending in $.95 instead of $.99 can impact clicks and conversions.
- Highlighting Trust Signals: Secure badges like "Amazon’s Choice" or "Best Seller" to build credibility and attract shoppers.
"A high CTR sends more traffic to your listing and therefore offers more opportunities for sales. It suggests how strong your product offering is (price, value, trustworthiness, etc)." – ADBadger.com
Analyze and Adjust
Regularly check Amazon PPC reports to evaluate keyword performance, ad placements, seasonal trends, and competitor actions. Strive for a CTR of at least 0.5% – Amazon’s average is 0.4%. If your CTR drops below 0.3%, it’s time to act fast. Keep in mind, a high CTR on irrelevant keywords won’t help. Use negative keywords to filter out unqualified traffic and ensure your ad spend is effective.
Now, let’s dive into how these insights tie into broader conversion strategies.
7. Order Problems (ODR)
The Order Defect Rate (ODR) measures how often customers encounter issues with their orders. It includes factors like negative feedback, A-to-z Guarantee claims, and chargebacks. ODR is calculated by dividing the number of defective orders by the total orders over a rolling 30-day period. To avoid penalties, sellers must keep their ODR at or below 1%.
Breaking Down ODR Components
| Component | Description | Impact on ODR |
|---|---|---|
| Negative Feedback | Customer dissatisfaction reported via feedback | Adds one defect |
| A-to-z Claims | Claims under Amazon’s A-to-z Guarantee program | Always counted as a defect |
| Chargebacks | Credit card disputes related to order problems | Counted as a defect |
Monitoring Your ODR
You can track your ODR through Amazon’s Customer Metrics page, which provides a detailed breakdown of order issues. It’s important to note that Amazon counts all A-to-z Guarantee claims as defects, even if later withdrawn or denied. These claims highlight potential concerns with customer service.
Tips to Prevent Defects
Reduce order defects by following these steps:
- Make sure product listings match exactly what customers will receive.
- Perform quality checks before shipping products.
- Respond quickly to customer inquiries or complaints.
- Clearly outline your shipping, return, and refund policies.
Handling Defects
When issues arise, resolve them quickly and document your actions to maintain account health. Keeping your ODR below 1% not only helps you avoid penalties but also builds trust with customers. A low ODR supports a strong foundation for managing ad spend and improving returns on future strategies. Proactive management ensures smoother operations and better customer satisfaction.
8. Ad Spend Returns (RoAS)
Tracking Ad Spend Returns (RoAS) helps measure how effectively your advertising dollars are working. RoAS is represented as a ratio – for example, a 2:1 ratio means you earn $2 for every $1 spent on ads.
Breaking Down RoAS
| RoAS Ratio | Performance Level | Description |
|---|---|---|
| Below 2:1 | Below Average | Campaign is underperforming |
| 2:1 | Industry Average | Earns $2 for every $1 spent |
| 3:1 – 4:1 | Good Performance | Delivers a solid return |
| Above 4:1 | Excellent | Highly efficient advertising |
Attribution Windows
- Sponsored Products: 7-day attribution period
- Sponsored Brands: 14-day attribution period
Keep in mind that data updates may take up to 48 hours. These attribution windows allow you to link your ad spend directly to resulting sales.
Tips to Improve RoAS
- Analyze Keyword Performance
Regularly review keyword spending. Remove terms that don’t convert and focus on high-performing, intent-driven keywords to lower costs and boost returns. - Refine Campaign Structure
A real-world example: MidWest Homes for Pets achieved a 32% RoAS increase by narrowing their focus to their most profitable pet bed category and restructuring their ad campaigns.
Advanced RoAS Tracking
Here are some critical areas to monitor:
- Conversion Rates: The average Amazon conversion rate is 9.5%, so aim to meet or exceed this benchmark.
- Campaign Types: Use a mix of manual campaigns and product-targeting strategies for better control.
- Audience Targeting: Fine-tune Sponsored Display and Video ad settings to reach the right audience.
- Budget Distribution: Shift your budget toward ad campaigns that consistently perform well.
Strive for a RoAS of 4:1 or higher to stay profitable and competitive. By keeping a close eye on these metrics and making regular adjustments, you can improve ad performance and boost sales.
9. Customer Reviews
Customer reviews have a direct impact on both product rankings and sales. Research shows that 95% of customers read reviews before deciding to make a purchase.
Review Performance Indicators
| Metric | Impact Level | Action Required |
|---|---|---|
| 4-5 Stars | Favorable | Maintain quality and service |
| 3 Stars and below | Critical | Respond immediately |
| No Response (24h+) | High Risk | 50% higher chance of negative feedback |
These metrics can help shape your approach to managing reviews effectively.
Key Monitoring Strategies
Use Review Management Tools
Leverage the Customer Reviews tool available in Seller Central. This allows you to monitor and respond to reviews efficiently. Keep in mind, this feature is accessible to Professional sellers who are Brand Representatives through the Amazon Brand Registry.
Respond Quickly
Timely responses can significantly improve customer satisfaction. For example, Amazon data reveals that responding to customer messages within 24 hours cuts the likelihood of negative feedback in half, compared to slower replies. Fast responses also help create a better environment for collecting positive reviews.
Effective Review Generation
- Use Amazon’s "Request a Review" option in Seller Central.
- Enroll qualifying products in the Amazon Vine program.
- Use Buyer-Seller Messaging thoughtfully to engage customers.
"I see our most successful Amazon FBA seller clients monitoring reviews carefully, addressing negative feedback quickly, and encouraging satisfied customers to leave reviews. It’s a simple metric to track and helps you engage with your customer base while helping drive your listings to the top of search results." – Chris Compean, Chief Executive Officer, Mayan
Best Practices for Managing Reviews
Monitor Regularly
Use Amazon’s tools to track review trends and uncover patterns in customer feedback. This can help you gauge product performance over time.
Handle Negative Feedback
When responding to negative reviews, follow these steps:
- Thank the customer for their feedback
- Apologize for any issues they experienced
- Explain how you’re addressing their concerns
- Offer a solution if possible
Analyze Reviews
Customer reviews can provide insights into areas for improvement. Use this feedback to refine your products, evaluate the success of recent changes, understand customer preferences, and guide inventory planning.
Keep in mind, Amazon strictly prohibits attempts to influence ratings or request the removal of negative reviews. Instead, focus on delivering excellent customer service and maintaining high product quality to naturally encourage positive feedback.
10. Sales Speed
Sales speed, also known as sales velocity, tracks how quickly your products sell by analyzing both transaction volume and total revenue. This metric plays a crucial role in product ranking since Amazon’s A9 algorithm prioritizes items that sell quickly. Faster sales not only increase earnings but also improve your product’s organic visibility.
How to Track Sales Speed
You can monitor sales speed using these Seller Central reports:
| Report Type | Key Metrics | Frequency |
|---|---|---|
| Business Report | Units sold, revenue | Daily |
| Inventory Report | Stock levels, turnover | Weekly |
| Sales Dashboard | Real-time transactions | Hourly |
These reports can help you identify trends and make timely adjustments to your strategy.
Impact of Velocity Limits
If your sales speed spikes, Amazon may temporarily place your products in a ‘pending’ status as it reviews velocity thresholds.
Tips for Monitoring Performance
Check your Seller Central dashboard regularly to catch sales trends and address issues early. Comparing current data with past performance can reveal seasonal patterns, market changes, or shifts in your product’s lifecycle.
How to Boost Sales Speed
Once you’ve analyzed your performance, consider these strategies to increase your sales speed:
- Optimize your product listings by including keyword-rich descriptions.
- Run targeted Amazon ads to reach the right audience and drive sales.
Using Metrics for Business Decisions
Making decisions based on data can improve your performance on Amazon. Here are some key metrics to help guide your business growth.
Conversion Rate Optimization
Keep an eye on your Unit Session Percentage to identify listings that aren’t performing well. You can find this data in Seller Central under Detailed Page Sales and Traffic Reports by Child Item. Set realistic conversion rate goals that align with your brand’s stage of growth.
| Area | Action | Expected Impact |
|---|---|---|
| Listing Quality | Update product images and descriptions | Build customer trust |
| Price Optimization | Analyze competitor pricing | Improve market positioning |
| Review Management | Address negative feedback promptly | Strengthen social proof |
| Ad Targeting | Focus on high-intent keywords | Attract more qualified traffic |
Advertising Cost Management
Balance your ad spend by monitoring ACoS (ad cost of sales) for immediate performance and TACoS (total advertising cost of sales) for a broader view of sales impact. Improving your Amazon listings can boost organic traffic and conversions, reducing reliance on ads and improving your TACoS.
Inventory Performance Strategy
Stay on top of your inventory by tracking stock levels, fixing listing issues that lead to stranded inventory, and aligning inventory with sales speed. Tools like the "Restock Today" button can help you quickly identify products that need immediate attention.
Data-Driven Growth Framework
Here’s how often you should track key metrics to stay on top of your business:
- Daily: Conversion rates and advertising costs
- Weekly: Inventory levels and sales speed
- Monthly: Overall performance using TACoS
- Quarterly: Adjust strategies based on past performance
Maintaining Prime-eligible status is crucial. Prime customers have a much higher conversion rate – 74% compared to just 10–15% for non-Prime shoppers. While some metrics, like a high ACoS during product launches, may fluctuate, integrating all metrics gives you a clearer view of your overall performance.
Next Steps
It’s time to start tracking your Amazon store’s performance with a structured plan.
Set Up Your Dashboard
Create a dashboard in Seller Central to monitor key metrics like:
- Conversion rates for each product listing
- Advertising costs versus returns
- Inventory levels to avoid stockouts
- Customer feedback and ratings
Establish Performance Benchmarks
Define clear targets for each metric based on your business stage. If you’re just starting, aim for modest goals. For established businesses, set targets based on past performance. Regularly evaluate metrics like conversion rates, ad spend, and inventory to keep up with demand.
Implement Regular Reviews
Regular performance reviews help you stay on track and make timely adjustments. Here’s a suggested review schedule:
| Timeframe | Focus Area | Key Adjustments |
|---|---|---|
| Daily | Sales performance | Revenue, costs, stock levels |
| Weekly | Market position | Search rankings, competition |
| Monthly | Growth analysis | ROI, market opportunities |
| Quarterly | Strategic planning | Long-term goals, expansion |
Use a centralized dashboard to keep these metrics updated and accessible in real time.
Start incorporating these steps into your routine today to make smarter, data-driven decisions.
