Key Amazon Metrics Every Brand Should Track

Are you focusing on the performance metrics most crucial for your Amazon business?

Amazon offers a lot of data in the form of reports or through the ad APIs. Data is extremely important for the business however too much data becomes a bottleneck to process. 

Being a brand owner or a decision maker, you need to look at the data at a regular cadence. 

Let’s have a look at some of the data points you should monitor regularly -

TACOS - 

TACOS refers to the total advertising cost of sales. It is calculated as a percentage of total spend divided by total sales. 

Monitoring TACOS is crucial as it directly impacts the overall profitability of the business.

Organic Share - 

Organic share refers to the share of sales happening without ads. This is a crucial metric as it will help in achieving the desired TACOS. 

It also helps to reduce the dependency on ad sales.

Conversion Rate - 

This is one of the most important metrics to be monitored at an ASIN level. It will directly impact the ACOS & TACOS of the ASIN.

Conversion rate is calculated as a percentage of the clicks converting into sales

Spend Share of Top Performing ASINs - 

Tracking this metric is important as it helps you to align your resources with top performers. 

You need to ensure that the spending is focused on top-performing ASINs to get more share of the pie from the competition. 

Revenue Share of Top Performing ASINs - 

The 80/20 rule applies everywhere. This means that 20% of your ASINs will contribute to 80% of your revenue in most cases. 

Tracking these 20% ASINs becomes crucial for the performance of your business. You should look into the ads & organic split of these ASINs in a set cadence.

Let's talk about the execution. How do you get the data daily, weekly, or at your desired cadence?