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September 12, 2019

Amazon KPI – Private Label Strategy (Step 8 of 10)

Why Measuring is so Important to your Cash!

Don’t ignore the data

It constantly shocks me how few sellers know their conversion rates
or sessions (visits). Don’t join them!

Equally: don’t drown in data either!
Make sure your “necktop computer” can absorb what your laptop is
telling it!

Detail Page Sales & traffic report (Under “Reports>Business Reports” )
Sessions: Is your product getting seen? If not, it’s time to drive
more traffic.
Units ordered: Are you making sales? How many?
Unit session percentage: = conversion rate. How well (as a
%age) is your listing converting visitors to buyers? If this is low,
it’s time to improve your offer (inc. price)

Profit and Loss
Don’t get buried in the numbers. Measure for a purpose
• The purpose of P & L is to help with decisions:
• Will you reorder this product?
• If so, how many units, what can you afford (cashflow)?
Use software for Gross Profit!
• e.g. Manage by Stats, Fetcher, HelloProfit

Amazon Ads statistics (Advertising>Campaign Manager)

Amazon Ad Spend
• If you’re launching, expect to spend a LOT initially. That’s fine IF
you’re gaining keyword ranking for valuable keywords as a result.
Track this!
Overall picture by campaign: Monitor for either really good
(profitable) or really bad (expensive) results.

Measure Keyword by keyword for manual campaigns:
• Look for sales – are you driving sales and ranking?
• Next look for clicks – are you telling the algorithm to rank your
listing?
• Check CTR (Click-Through Rate). Over 0.7% is good for ranking.

Get the Overall ad spend by-product:
• Take the ad-spend on a product for a period.
• Check your overall sales (Business reports) for the same period.
• Calculate your ad-to-sales ratio (ATS). If it’s high in launch
period, that’s fine. After launch, aim for about 10% overall.
• Mostly ignore ACoS unless it’s super high (over 100%). It’s a red
herring.

Watch my full discussion of Amazon KPI – Private Label Strategy

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Michael Veazey


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