How to Leverage your Amazon Product Sale Statistics to Improve your Sales
Amazon has built itself as an entirely customer-focused conglomerate, and in doing so has become the most successful e-commerce business in the world. Dominating a staggering 50% of the U.S. e-commerce market. Amazon has reached this level by keeping high standards across all platforms. This includes regulating the third-party businesses that sell on Amazon.
One way to utilize your Amazon Product Sale Statistics is through the scoring system that contributes to your seller rating. Amazon will provide you with a score out of 100, using Amazon customer metrics to measure your performance. This is available on your Seller Central homepage. There are several different metrics, along with seller feedback, which contributes to your score. Each of these can be analyzed and the data used to improve your business and increase sales.
Amazon has also recently introduced Amazon Brand Analytics. This is a fantastic way to get information about your customers and the consumers using the platform. You can use Amazon Brand Analytics to get demographic information including age, gender, and marital status. It also can provide insight into popular search terms and products similar to your own. At the moment, this feature is available to “eligible brand owners” who are enrolled in the brand registry. Here you can see invaluable information about your customers and your Amazon Product Sale Statistics, and Sellers Choice can help explain how to use this data to improve your sales.
First, though, let’s talk about Amazon Customer Metrics.
Amazon Customer Metrics
A customer metrics system is in place so Amazon can measure the performance of each seller. These Amazon Product Sale Statistics ensure the high standards set in place by the company are met. They’re basically quality control but on a huge scale. In order to be a successful Amazon seller, you need to understand the customer metrics and know how to keep your performance up to scratch. Poor seller ratings can lead to suspension and even termination of your account, so their importance is not to be ignored.
When calculating a seller rating, Amazon uses several different key figures. An overview of these metrics can be found in Seller Central, under Performance and then Account Health. Here you can find your “Perfect Performance” statistic, which you should strive to keep about 95%. Some Amazon Product Sale Statistics which can really help improve your sales are your Order Defect Rate, Pre-Fulfilment Cancellation Rate, and Late Dispatch rate. These can really have a huge impact on the success of your business, so learning about them and implementing changes is vital. Here are some ways you can interpret and use the information that Amazon Product Sale Statistics provide, to create conversions and make money!
1) Order Defect Rate (ODR)
An order defect is any transaction that receives negative feedback, an A-to-Z claim, or a credit card chargeback. Essentially if the product you sell differs in any way from how it was pictured or described, one of these three scenarios is likely to occur, and your ODR will rise.
When a customer makes a purchase on Amazon, they’re invited to leave feedback. If you receive negative feedback, it will negatively affect your ODR. Amazon’s A-to-Z guarantee is basically that all products purchased through Amazon will arrive in the exact described condition, within the stated time frame, so if a product you have sold does not fulfill these requirements, then a claim could be made. Finally, a credit card chargeback happens when the buyer distributed a charge to their bank, usually when the item is damaged or faulty, or of course if they didn’t receive it. All of these factors contribute toward your order defect rate, and if you don’t take action, then your business could be in danger.
Amazon sets a target of less than 1% for seller ODR rates. This may seem hard to attain, but as such a customer-focused company, Amazon is striving for perfection. If your ODR rate is higher, this shows you aren’t performing as well as you could be as a seller. However, all is not lost. Now you have an opportunity to improve your sales using this Amazon Product Sales Statistic.
If you find yourself with an unsatisfactory ODR rate, you can use this feedback to make improvements and increase conversions in the long run. One place poor ODR rates can stem from are negative reviews. Reviews are the most direct way to get feedback from a customer, and also the most important. Every review goes on your Amazon page, so lots of poor reviews will put buyers off and lead to a decrease in sales.
Pay attention to poor reviews, and make it a priority to resolve any issues as soon as possible. Take the time to absorb all customer feedback and if necessary, make changes to your process. This could be as simple as a change in shipment packaging, or could even mean making alterations to the product itself. The same goes for complaints filed through A-to-Z, you can use this Amazon Product Sales Statistic to make powerful changes to your business that could increase your sales exponentially.
2) Pre-Fulfilment Cancellation Rate (PFCR)
Your PFCR is the percentage or orders canceled by you, the seller, before shipment. Most commonly this is caused by poor stock management. Managing stock is of paramount importance for every business. Sellers must know how many units they have at all times, and make sure they match up with units listed on Amazon. Amazon automatically update stock levels when purchases are made, so make sure you check your inventory regularly.
Amazon sets a target or 2.5% or less for PFCR. You can use your PFCR to regulate the number of shipments being missed, as every order canceled before shipment is a loss of business for your company. If your PFCR is high, this is a sign you need to pay closer attention to your inventory. Keeping detailed records, and doing stock control counts regularly can help lower your PFCR. Always make sure to check your physical inventory against the number of units you have listed on Amazon. The most common reason orders are canceled by the seller before being shipped is having units available on Amazon but no physical stock to back it up. Keeping up to date is an easy way to increase sales, by not losing business due to lack of stock.
3) Late Dispatch Rate (LDR)
The LDR metric is as simple as it sounds. It’s the percentage of orders that have been dispatched late. Amazon classifies a late dispatch as an order whose shipment confirmation is 3 or more days overdue. Even if you’ve already shipped the order, if you fail to update this on your seller account, notifying Amazon and the customer, your LDR will increase.
Simply put, staying organized will keep your LDR rate low. Always update on Amazon as soon as you’ve shipped out an order, and this way Amazon’s process will function as designed. As well as increasing your LDR rate, late shipments can cause negative reviews and cause a loss of business in the long run. On the other hand, shipping orders promptly will lead to higher customer satisfaction and more sales for your business!
Amazon Brand Analytics
Amazon Brand Analytics is an incredibly valuable tool for a seller. If used correctly, the information they provide can improve the way in which you market and list your products, creating more conversions.
This feature gives sellers access to some invaluable Amazon Product Sale Statistics. It includes an Item Comparison Report which shows brand owners a breakdown of their customers by age, household income, education, gender, and marital status. There’s also a demographics report available which shows the top 5 products most viewed on the same day as your products, and the percentage of time they’re viewed for.
Information about customer demographics can be used to make adjustments to product marketing, pay attention to the demographic most popular for your products and make sure your marketing is optimized towards them. Figuring out your customer profile is an important part of marketing your products correctly on Amazon. The access to competitor data in the form of other most viewed products means that you can bridge the gaps left in the market.
Amazon Brand Analytics gives sellers access to information about keyword popularity, and you can view most clicked ASINs (Amazon Standard Identification Numbers) based on specific search terms. Using this, you can optimize your product listings for Amazon’s store using SEO, making it easier to rise up search rankings and gain recognition for your brand. Increasing sales is easy when you make the most of these Amazon Product Sale Statistics.