In the world of Amazon metrics, there’s more to be learned than just sales and profit. In this article, we’ll cover Contact response time, Order defect rate, TACoS, and RoAS. Ultimately, we’ll focus on customer experience. Ultimately, these metrics will help you understand your customers, and they will help you improve your products and services.
Order defect rate
If you’re selling on Amazon, you’ve probably seen metrics for order defect rate (ODR) before. This measure helps you see where you’re failing to meet customer expectations. The metrics are based on how many defective orders you’ve received as a seller, divided by the total number of orders you’ve shipped.
Ideally, you want your ODR to be less than 1%. While it’s understandable that an order may be damaged or arrive late, having a high rate is an indicator that your brand doesn’t meet the highest standards. Amazon calculates ODR on a monthly basis, so it’s essential to monitor it carefully. This will help you address issues before they escalate into customer claims, which can lead to negative reviews.
TACoS
When it comes to building a profitable Amazon business, understanding metrics like TACoS is crucial. It helps you understand how advertising is affecting your organic sales and identifies how to better allocate your budget. By reevaluating your ad spend, you can increase organic sales and lower your TACoS. You can also use tools like Amazon PPC tools to track ad campaigns and organic sales to measure performance in real time.
When used in conjunction with other metrics, TACoS is a useful way to assess the success of your Amazon advertising campaign. TACoS gives you a bird’s eye view of your business, and can help you create a long-term strategy. However, it’s important to understand that TACoS should be one of many metrics, and obsessing over it may cause tunnel vision and make it impossible to make the necessary changes.
RoAS
When you run an Amazon ad campaign, your ultimate goal is to get your product seen by as many people as possible. In order to achieve this goal, you need to maximize your ROI. Using AdWords and Sponsored Content is one way to maximize your ROI. However, it can be tricky to know which strategy will work best for your products. Fortunately, there are many ways to optimize your ad campaigns on Amazon.
Depending on the product, category, and overall health of your business, a high RoAS can be beneficial. Generally speaking, a good RoAS is about four times higher than a low RoAS. This means that for every dollar spent on advertising, you can make $4 of profit. In contrast, a low RoAS is a better option for low-converting products and new brands. This type of advertising will require you to invest in your business until your brand becomes recognized and starts to generate revenue.
Ad position
Amazon Ad Manager is a useful tool for advertisers, as it allows them to track the position of their ads and alert them when they are losing positions. It also provides a detailed analysis of the results of your ads and allows you to compare historical data. This data can be useful in improving your ad copy and keyword targeting, resulting in more sales and less ad spend.
CTR (Click Through Rate): Amazon sellers must monitor this metric to gauge the engagement their ads are receiving. Impression-based ad performance is useless if your ad doesn’t produce any clicks. The goal is to have a higher CTR (click-through rate), which measures the conversion rate, which is the number of sales generated from the clicks on your ad.