If you are a seller on Amazon or other platforms, keeping an eye on your performance metrics is crucial to succeed online and earn well. You won’t be a leading e-commerce seller without having any idea of which products or marketing, and sales strategies work for your business.

Keeping a handle on metrics can be difficult as there is a lot of data to cover, and sellers struggle to prioritize it, especially on Amazon. However, if you are not using Amazon Performance Metrics to focus on the areas you lack, you miss out.

Data that you get from the performance metrics help you improve your Amazon business for your customers.

Let’s see how Amazon Performance Metrics works!

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Amazon Performance Metrics and its importance

Amazon Performance Metrics are not just rules for sellers to follow. They play an essential role in how Amazon ranks the sellers to appear in search results. Plus, these metrics are important for assigning the Buy Box to Amazon sellers. Amazon performance metrics also show how your Amazon account performs, including pricing of your products, customer satisfaction, and marketing strategies.

You can visit your Seller Central account and go to the “Performance” tab to have an overview of your performance metrics on Amazon. Clicking on “Account Health” will allow you to see your customer metrics.

For Amazon, customer satisfaction comes first. Amazon sets high standards for sellers and only allows the good ones to sell across the platform and be on top of the list. If you work on your Amazon Performance Metrics, you are eligible to sell some of the specific categories such as electronics or beauty products.

Finally, if you want to sell successfully on Amazon, then understanding your performance metrics is important. You can easily focus and improve your performance, and it can also help you get your account back if it gets suspended!

Important Amazon Seller Performance Metrics to track

Whether you are an individual or a pro seller, you must know the most important performance metrics to know your business’s current position on Amazon. Here are the top 6 Amazon performance indicators you should keep in check:

1.      The Order Defect Rate

An Order Defect Rate is the percentage of people that were not happy with your product.

An order is defective if the customer asks for a chargeback, gives a negative review, or receives an A-Z Guarantee claim.

If you have a fair amount of negative reviews, returns, and chargebacks, then there won’t be many customers purchasing from you. They won’t be able to trust you, which will directly affect your sales.

The limit given by Amazon for ODR is 1%. So it is necessary for you not to let the percentage grow and work on maintaining your customer satisfaction.

Ensure you provide quality products with the best customer service and ship on time to appear in the good books of Amazon.

2.      The Rate of Late Shipment

Customers get highly disappointed when they receive an order after the claimed delivery date. When you provide late shipping, customers tend to leave bad reviews, which might not be the best for your product page.

If you consistently take more than two days to dispatch your order, Amazon considers your business disorganized. Amazon is all about its customers and won’t tolerate bad customer experience.

To keep your rate of late shipment below 4%, make sure to provide fast shipping for your customers. Amazon calculates the metrics within 7 to 30 days, and if you exceed the percentage, you will receive a notification from Amazon.

Get on track and provide on-time shipping!

3.      Pre- Fulfillment Cancellation Rate

It is the responsibility of Amazon sellers to make sure the stock is available before they advertise it.

When you cancel an order requested by a customer because you don’t have the product in stock, that is pre-fulfillment cancellation rate, and that is a big no on Amazon!

You must stay under 2.5% whenever Amazon calculates the cancellation rate and make sure the percentage doesn’t increase. Keep an eye on your inventory, and make sure you plan for holidays and other occasions where people shop more than usual!

You can quickly become unreliable if you don’t have satisfied customers. Work on it!

4.      Conversion Rate: Unit Session Percentage Rate

This refers to how many visitors to your store become buyers and end up purchasing your products. Checking the conversion rate is the easiest way for Amazon to monitor your performance. If the conversion rate is high, it means your product performs well in the market, and people are buying it. However, if your conversion rate is low, then you must improve for better results.

Amazon doesn’t suspend or warn you for low conversations, but you need to keep your page ranking high and increase your sales!

5.      CRT (Contact Response Time)

If you receive a message from your buyers, how well do you respond to them is very important. If you haven’t considered it before, then now is the time!

Your Contact Response Time tells Amazon about the number of messages you respond to within 24 hours. Amazon has set the limit of responding to messages of customers within 24 hours, even on weekends.

Make sure you reply to your customer messages on time, or Amazon sends you a notification to remind you to do so. If you are frequently late in responding to your customers, it will harm your Amazon performance metrics.

6.      Product Ranking

It is the most important aspect of your Amazon performance metrics. Your product needs to appear on top of the search results when buyers look for a specific product. Getting the best seller rank in your category is important to get maximum sales and stay visible.

The job of Amazon performance metrics is to show you how your product is performing right now. It shows you the reviews and the number of sales you get.

How can Alpha Repricer Help?

Staying on top of the product page and having a better product ranking highly depends on how competitive you keep your product prices. Alpha Repricer– the best Amazon repricer helps you keep your prices competitive by repricing your products continuously against your competitors. Our Amazon Repricing tool makes sure you stay ahead of your competitors by offering the fastest Amazon repricing in the industry! Sign up now.

Learn more about how Alpha Repricer– the best Amazon repricer helps you achieve your goals by clicking here!

Do Amazon Performance Metrics affect your growth and ranking on Amazon?

Yes, Amazon performance metrics have a direct impact on your sales and rankings. You should keep monitoring your performance metrics regularly to stay on top. Amazon only gives the Buy Box to sellers who have a healthy Amazon account.

If your account has a high pre-fulfillment cancellation rate or ODR rate on Amazon, you could end up with zero sales. Make sure you work on your performance metrics to fix the areas you lack and improve for your customers.

We are always here to help! You can try our free 14-day trial to experience the best Amazon repricing tool to help you stay competitive. Contact us for more information.

Author

  • Noor Jarri

    Meet Noor Jarri, a seasoned writer specializing in the dynamic world of Amazon. With over three years of experience, Noor has become a trusted resource for Amazon sellers seeking guidance on repricing strategies and navigating the e-commerce landscape.

    As a valued contributor to Alpha Repricer, Noor's expertise shines through in her engaging blog articles, press releases, and guest posts. Praised for her skill in crafting content that is both informative and approachable, Noor's writing is a knowledgeable resource for sellers of all levels. Beyond her professional pursuits, Noor is an avid traveler and culinary enthusiast. She finds inspiration in exploring new destinations and experimenting with recipes from around the world.

    Join Noor Jarri on her journey as she continues to empower Amazon sellers with insights, tips, and strategies to thrive in the ever-evolving marketplace.

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