Like any business there are key metrics you need track. In this article, we’ll outline what these are, and why it’s absolutely vital that you track them and record them.
Ongoing Tracking Of Key Metrics
Why is it absolutely vital that you track your metrics? The reason is simple, your metrics tell the story of what’s going on in your Amazon business!
We’ve helped thousands of people over the years and one of the biggest issues people have is that they don’t track their metrics. If you’re not tracking your metrics then it makes it very difficult to continually improve month after month after month for your business.
We recommend that you record your data once a month, if you do it any more frequently than that, then it’s really not that valuable because you don’t have enough data to go on for the most part.
It’s no good tracking your metrics, and then doing nothing with it, make sure you actually use it!
TIP: Track the data, record it, USE it!
What Data Should You Track?
There are a few things of what you are going to want to track on a monthly basis such as:
- Best seller rank (BSR)
- Sales and where they come from, (i.e. organic and from Amazon pay per click ads)
- Unique page views (these are your sessions inside your Amazon report)
- Conversion rate
- Reviews (cumulative, month on month)
- VIP list subscribers (month on month)
- Keyword rankings
- Total pay per click cost (if you’re running ads)
- The cost of goods sold (COGS)
- Any fees you may have had
TIP: Ensure you track all of the above on a monthly basis
Use Our Own Spreadsheet To Track Your Metrics
We’d like to share with you our very own spreadsheet that has proven quite effective over the years which you can use to track your metrics.
You can download this spreadsheet from the following link: ‘tracking spreadsheet’.
You’ll notice there is a number of tabs, but the only one you really need is the ‘Tracking’ tab.
Bear in mind, the other tabs available may be useful to you such as:
- Launch Forecast & Sales
- Product Launch Tasks & Timeline
Please note all of the above tabs contain hypothetical information for example purposes only. All the numbers can be obtained in your Amazon report inside of Seller Central.
Explanation Of Metrics To Track
In the ‘Tracking’ tab you’ll see month after month after month.
You will also see the following information:
Best Seller Ranking (BSR)
If for example you are tracking your metrics on the 1st of each month, go into your Amazon listing and write down your BSR.
Bear in mind your BSR fluctuates quite a lot, but over time this should enable you to see a general trend.
You should have your total sales broken down into:
You need to track the above sales for each one of your products, then you should see your total revenue.
Pay Per Click Ad Costs
The reason pay per click ad costs are important, is it’s going to allow you to see how much you’re spending for each of your products, where that money is going, and whether it’s profitable or not.
You also need to track cost of goods (COGS), refunds, return fees, Amazon fees, and any website sales should you have them.
Once you have all these entered onto your spreadsheet, you can work out your profits (the formula is already entered in the spreadsheet).
Back in the main metrics you have the following:
These are the sessions, i.e., how many visitors you’ve had, month after month, after month.
You need to pay close attention to these figures, as if your sales plummet for example, ask yourself is it because your traffic dropped, or is it because your conversion rate dropped? (conversion rate is another one of the metrics that we want to track).
You need to track how many reviews you are getting on a month by month basis, and cumulatively, how many you’ve got.
VIP Email Subscribers
As with reviews, the same applies to VIP email subscribers, you need to track on a month by month basis, and cumulatively.
Here you want to target four or five keywords for each one of your products, then track the ranking they’ve actually got.
The price of your product directly affects conversions, so in the following article we’ll discuss the importance of pricing correctly; ‘Price Testing – How We Increased Our Profits By 17% In Month 1‘.
Read on to discover how you can optimize your way to the top using our simple price testing method.
In this article, we’ve discussed why it is absolutely vital that you track your metrics.
We’ve shown you all the different examples of the metrics you need to track, and shared with you our very own spreadsheet to enable you to do this.
The good thing about this spreadsheet is it’s very simple to use, it will give you your profit, it allows you to see at a glance how the products are performing, and it also allows you to pinpoint where any potential issues may lie.
So there is absolutely no excuse for not tracking your metrics!
BlackBird Suite = Our SECRET Weapon
BlackBird Suite is the ultimate tool for tracking your key metrics, and providing you with cutting edge Amazon seller training.
BlackBird Suite gives you the ability to easily:
- Track your products, sales, reviews, pricing, and ranking
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- Send emails to your customers (to generates reviews and more sales)
- Learn ALL the secrets to selling on Amazon (via 71 training videos)
- To ask Steve, me, Matt Carter (partner), and our team of ‘Gurus’ ANY Amazon selling related question ANY TIME you want to using our unique ‘Grab A Guru’ strategic support system.
Tehmina Zamir is a Content Manager at Blackbird Suite. With 5+ years experience in the multiple-niche industry, she writes action driven marketing sales copy to help millions of Amazon sellers grow their business at a rapid rate. She is also an author of Global Patient Transfer, Gooline Space, Healthwiz360 etc.