Guide on Amazon- What are the Key Metrics Your Competition is Looking At? What does that mean?

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Amazon Performance Metric

Guide on Amazon- What are the Key Metrics Your Competition is Looking At? What does that mean?

If you are an Amazon seller looking forward to improving your sales rate over the marketplace, you must consistently monitor your performance metrics. As the buyers’ expectations change over time, so do Amazon’s policies. Therefore, your account might get suspended if your products or brand is not performing well on Amazon.

So, to ensure that your sales over Amazon don’t deteriorate, you must look after the key metrics of the platform. Please note what your competitors are tracking to evolve their business and adapt to them.

To help you in this quest, this article explains the important metrics within the Amazon seller guide to help you stay ahead of the competition.

What are Amazon Seller KPIs (Key Performance Indicators)?

Amazon KPIs are quantifiable metrics that help you understand how your brand performs over the platform’s Seller Central. These metrics are accountable for measuring almost all aspects of your business. With it, you can seek to evaluate the success of your products, pinpoint the areas that need improvements and improve customer service.

There are quantitative and qualitative KPIs that determine the overall performance. Quantitative Amazon Seller KPI is about the numbers such as the number of people who placed orders, returned products or viewed an ad.

In contrast, qualitative KPIs are about the engagement and impressions of your brand’s experience. It measures how people accept your brand, the number of people interacting with your targeted ads, the time people spend on your ads, etc.

As a whole, all of these metrics are important to help you determine if your business objectives are met. Following that, you can take the initiatives to overcome the loopholes and help improve your seller tactics in the marketplace.

If you haven’t utilised the Amazon KPIs, you are already lagging behind your competitors. You must do a thorough competitor analysis to check what metrics they count on and implement it yourself to get a competitive advantage.

Key Amazon Seller Metrics You Should Take a Closer Look At!


There are a plethora of aspects that define whether your brand is performing well over Amazon or not. Whether you are keeping a tab on your product’s rate of sale on Amazon or measuring the cart’s abandonment rate, each of these metrics will help you improve your parameters to acquire more sales in the long run.

So, to help you stay ahead of your competition over Amazon, here are the key metrics you should count on monitoring and using on effective terms:

  1. Amazon Sales Revenue

The metric indicates the total money Amazon makes by selling its products on its online marketplace. It includes the advertising fees you pay Amazon for listing your products on its platform.

  1. Gross Profit 

The gross profit metric is the first profit evaluation KPI for you to determine your business performance over Amazon. It is the difference between total revenue and the cost of the goods sold. For instance, if you have bought a product for $10 and are selling it over Amazon at $20, your gross profit is $10.

  1. Product Returns Metric

The Amazon sale metric determines the customers’ requests to return or replace an item. This metric gives you an average number of return requests raised for every 1000 units sold. For instance, if you have sold 200 products, and 80 customers raised a return request, then the product return metric for you will be 40%.

  1. Amazon AOV (Average Order Value) Metric

AOV is one of the key Amazon FBA guide metrics that helps you measure the average money spent on each customer. You can calculate it by dividing your total revenue by the number of orders. With it, you will get an idea of customers’ purchasing habits, brand advocacy, and other parameters.

  1. Amazon Total ACoS

Amazon Total ACoS, also known as the total advertising cost of sale, is an important metric to help you understand how your ads contribute towards your business’s growth. With this metric, you will get the relationship between the total money spent on ads and total sales over the platform.

You can calculate it by dividing your ad spend costs into total sales, and multiplying it by 100, to get the TACoS percentage. It determines what percentage of revenue or sales is obtained through ads compared to the total sales.

  1. Amazon ACoS

Amazon ACoS is different from that TACoS. With ACoS, you will divide the ad spend by the total ad revenue. Hence, this will give you an insight into how successful your ad campaign was and how much profit it made you.

  1. Amazon Inventory Performance Metric

Amazon’s Inventory Performance metric measures your ability to maintain your stock for demanding products. Following that, this parameter will indicate whether you are holding healthy inventories and fixing the listing issues.

The score you obtain in this metric will determine if you need any improvements for maintaining your inventory for the seamless operation of your business over Amazon.

  1. Customer Lifetime Value Metrics

Customer Lifetime Value metrics determine the total revenue you have generated from a customer throughout its interaction with your brand over Amazon. By taking note of this metric, you will know how many customers were converted to repeat purchasers for your brand. It also determines the customer satisfaction rate to understand if you must improve your business performance or continue your current approach.

  1. Order Defect Rate (ODR) Metrics

It is part of customer service metrics, where ODR determines the number of orders that have triggered a negative experience for the buyers over Amazon concerning your brand. It is a worrying concern if the ODR metric is over 1.1%.

  1. Amazon Buy Box Metric

Amazon Buy Box metric determines if your offer is effective enough over Amazon to win the Buy Box. For those who don’t know what Buy Box is, it is the prominent display of the ‘Add to Cart’ and ‘Buy Now’ tabs over the product listing. This is not common for all products and sellers on Amazon, which helps sellers stand out in the crowd.

With this metric, you can check if your Amazon sale prices or offers are effective enough to acquire Buy Box. Make necessary improvements to acquire it.

Use Weavr to Keep a Tab of All the Amazon Metrics for Easy Assessment!

You cannot expect to take a manual route on measuring all of these metrics, organizing them in a spreadsheet and utilizing them for collectively improving your Amazon performance. Weavr is a popular digital cockpit that can help you measure and keep track of all seller metrics under one roof.

It will help you easily assess the parameters and keep track of the areas that need improvement. While assessing the metrics has been digitized, you can direct your efforts towards improving your performance over Amazon to surpass the competition.

In Conclusion

Now, you have the ten crucial Amazon metrics that your competitors probably utilize to keep up with Amazon’s performance policies. Remember, you have to keep up with your brand’s sales rate, rectify the loopholes and overcome the negative metrics to ensure Amazon doesn’t suspend your account.

In this quest of thriving and earning more revenue from Amazon, keeping track of important KPIs or metrics is of utmost importance. Keep analyzing, reporting and marketing your products as a result of these evaluations to improve your performance graph over the unified dashboard.

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