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Home > Amazing FBA > Amazon KPI – Private Label Strategy (Step 8 of 10)
Podcast: Amazing FBA
Episode:

Amazon KPI – Private Label Strategy (Step 8 of 10)
Category: Business
Duration: 00:39:52
Publish Date: 2019-09-12 00:00:30
Description: Why Measuring is so Important to your Cash! Don’t ignore the data It constantly shocks me how few sellers know their conversion rates or sessions (visits). Don’t join them! Equally: don’t drown in data either! Make sure your “necktop computer” can absorb what your laptop is telling it! Detail Page Sales & traffic report (Under “Reports>Business Reports” ) • Sessions: Is your product getting seen? If not, it’s time to drive more traffic. • Units ordered: Are you making sales? How many? • Unit session percentage: = conversion rate. How well (as a %age) is your listing converting visitors to buyers? If this is low, it’s time to improve your offer (inc. price) Profit and Loss Don’t get buried in the numbers. Measure for a purpose • The purpose of P & L is to help with decisions: • Will you reorder this product? • If so, how many units, what can you afford (cashflow)? • Use software for Gross Profit! • e.g. Manage by Stats, Fetcher, HelloProfit Amazon Ads statistics (Advertising>Campaign Manager) Amazon Ad Spend • If you’re launching, expect to spend a LOT initially. That’s fine IF you’re gaining keyword ranking for valuable keywords as a result. Track this! • Overall picture by campaign: Monitor for either really good (profitable) or really bad (expensive) results. Measure Keyword by keyword for manual campaigns: • Look for sales - are you driving sales and ranking? • Next look for clicks - are you telling the algorithm to rank your listing? • Check CTR (Click-Through Rate). Over 0.7% is good for ranking. Get the Overall ad spend by-product: • Take the ad-spend on a product for a period. • Check your overall sales (Business reports) for the same period. • Calculate your ad-to-sales ratio (ATS). If it’s high in launch period, that’s fine. After launch, aim for about 10% overall. • Mostly ignore ACoS unless it’s super high (over 100%). It’s a red herring.
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