Key Metrics to Stay at the Top on Amazon

You have started your business successfully, you have your customers, your business is running smoothly. But how do you stay at the top always?

There are many businesses that start off brilliantly, but with time they wither and die. Why does this happen? And how do some businesses thrive superbly? The answer to this is metrics, which define the overall health of your business. Becoming successful on e-commerce platforms like Amazon is no different. You can’t rely on optimism alone to get to the top. You can’t afford to ignore the vital statistics of your business. Luckily, there are several tools to help you understand and monitor. Amazon provides some of the best metric systems to sellers. Let’s take a look at them.

Sales Metrics

It’s a given that without proper sales, there can be no business. The first thing to understand is that it is easy to monitor your business when you have a limited range of products. Once you start building your range it becomes a tad difficult to keep track on them. Just because you have stocked up a huge range of products doesn’t mean your business grows all by itself. Some of those products may not move at all. Holding them will result in loss of business. Monitor your numbers to stay afloat.


Amazon has a solid feature called Amazon Payments Report. This is the place where you have check for the breakdown of your income. The feature gives a quick summary of all your earnings and breakdown of those earnings per each transaction. Scrutinize each product’s earnings and figure out your average income per month for those products.

Fee Structure

You can never hope to achieve success on Amazon (or any other e-commerce platform) if you are not taking note of fees. You won’t get a clear picture of your earnings and losses. You should become an expert on your fees. Amazon takes a cut every time you sell a product. So you need to figure out if it’s really worth it. Some products, although oversized and sell more, don’t necessarily mean that they are worthwhile. Some products, on the other hand, although regular-sized, sell less can make you more profit. So make it a habit to break down the fees and costs and take a look at the overall margin on a regular basis.

Seller Rating

Your seller rating is your report card. It clearly tells you if you are doing well. This is calculated and updated on an hourly bases based on your sales numbers. This rating is calculated in each category. Keep a lookout for your best seller raging for each product you sell over a period of time. Scrutinize properly to know when it has impacted you and how, either positively or negatively.

Performance Metrics

Amazon is obsessed with customer satisfaction. So it is obvious that they fathom your authenticity and service based on customer-service based performance metrics. They expect you to hold on to high standards of customer service. If you fall below their expectation, they will either penalize you or suspend your account. This is a good thing. These high expectations make you serve better, thereby make some profit for yourself.

Order Defect

Order Defect occurs when an order receives a negative feedback from customers. It is calculated by dividing the sum of defect orders with the total number of orders. To stay on good terms with Amazon, you have to aim for less than 1%. Else, you may receive a warning or you may even be suspended. So make sure you resolve customer issues at any cost.

Order Percentage

Make sure your order percentage is always perfect. Meaning, the orders should be accepted and fulfilled. You may not be able to control the fulfilment and shipment part, but you can always make sure you done everything right when it comes to fulfilling your customers’ expectations by providing them authentic products; make sure you always have your products in stock. Avoid cancelling orders because they are not in stock. Negative feedback may also result from poor product description. Avoid this by providing clear, crisp descriptions along with high-quality images.

Pre-fulfilment Cancellation

Pre-fulfilment Cancellation Rate = (Cancelled Orders) / (Total Orders)

Simply put, it is the number of orders cancelled by you before the shipping confirmation. This is something Amazon takes very seriously. If you have listed a particular product and a customer orders it, then you should have that product in your inventory and ready to ship. Inventory management plays a crucial role. Always keep your pre-fulfilment cancellation rate well below 2.5%.

Customer Satisfaction

Amazon has a tool called CDSR, which measures customer satisfaction based on your responses to their messages. When you answer a customer through Buyer-Seller Messaging Service, Amazon includes a survey right below your response asking customers: Did this solve your problem? Customers can select Yes or No. CDSR is the percentage of No’s divided by the total number of responses. Keep your customer dissatisfaction rate well below 25%.

Tracking Rate

Make sure seller-fulfilled orders meet a target of at least 95% of orders with proper tracking numbers. This is Amazon’s commitment to customer satisfaction.

Return Dissatisfaction Rate (RDR)

RDR calculates customer satisfaction based on how their returns are handled. RDR is the percentage of valid return requests which are not answered in 48 hours, incorrectly rejected, received negative buyer feedback. Keep the RDR as low as possible to be in Amazon’s good books.

In a nutshell

If you want to stay on top of your business on Amazon, then you should keep monitoring your key metrics on a regular basis. Selling authentic, unique products alone is not going to make you successful. You have to keep an eye on your numbers.


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