Top 10 KPIs to track for Amazon Vendors
Are you an Amazon Vendor and wondering which KPIs are essential to track for your business? The Seelk experts share their top 10 KPIs to track below.
If you are a Seller we recommend this article: Top 10 KPIs for Sellers
1. Effective sell in
The effective sell in represents the actual demand from Amazon. It is the amount of business between the Vendor and Amazon.
By comparing the effective sell in with the Amazon total cost, we can evaluate the number of missed opportunities. That is, the number of sales that could have been made if all the units ordered by Amazon had been delivered. Several reasons can explain these “missed sales”: Vendor lead time, delivery failure, bad appointment, or palletization
🔎 How to calculate the effective sell in
- Extract your purchase order (PO) from Vendor Central (Tab order / Upload PO to ASIN level) and calculate your effective sell in by multiplying: quantity received and unit cost.
- If you use a retail analytics tool like Seelk Studio, you can easily access this KPI without having to go through Vendor Central.
⏱ FrequencyTo be monitored at least once a month.
2. Acceptance rate
The acceptance rate represents the quantity the Vendor agrees to deliver compared to Amazon’s initial request. It is an indicator of missed opportunities. The closer this rate is to 100% the better.
🔎 How to calculate the acceptance rate As for the effective sell in, the acceptance rate can be found on Vendor Central via the same PO export.
However for high volume Vendors, calculating their acceptance rate can be time-consuming, as it may require several exports to be combined. If you are in this situation, it may be better to use a retail analytics tool to save time.
⏱ FrequencyThis indicator is a health indicator, we recommend keeping an eye on it (2 to 3 times a week) in order to be able to quickly assess if there is a problem on the account.
3. Fill in rate
The fill in rate represents the quantity that Amazon has received versus the quantity that the Vendor has agreed to deliver.
The fill in rate highlights potential delivery or product availability issues.
🔎 How to calculate the fill in rateAs for the acceptance rate, it is easily calculated via Vendor Central.
⏱ FrequencyThe fill in rate is also a health indicator, track it weekly to make sure there is no sudden drop!
4. Replenishment out of stock
The replenishment out of stock allows you to see how long a product was out of stock when it should have been available. For example, it is active in your product catalog but it is no longer available at Amazon.
This can be due to a delivery problem, or an Amazon order that the Vendor could not honor. In any case, this indicator should be taken seriously as stockouts have a direct impact on the visibility of your products.
🔎 How to calculate the replenishment out of stockThis KPI is easily accessible via Vendor Central under the tab: report / analytics / replenishment out of stock. It is, however, complex to compile, so make sure you have the necessary resources to work with the raw data extracted from the Amazon report.
⏱FrequencyKeep an eye on it regularly, around two to three times a week.
5. Lost buy box due to price
This KPI indicates the number of times (in percentage) that a product in stock did not get the buy box because of its price. This means that Amazon has evaluated a better offer from a Seller and refuses to match the price in order to avoid a profitability deficit.
Of course the objective is to be equal or close to 0%. Above 5%, the situation is considered critical and actions must be taken quickly.
To improve the lost buy box rate due to price, we recommend working with your different distributors in order to avoid competition on Amazon.
🔎 How to calculate the lost buy box due to priceThis KPI is directly available on Amazon Vendor Central.
⏱ Frequency If there are no major problems on the account, look at this KPI once or twice a month.
6. Sell out
The sell out represents the consumer demand– what is actually sold by Amazon to its consumers. As a Vendor it is important to have access to consumer demand because Amazon will only place POs if the algorithm anticipates sales. It is up to the Vendor to make the product attractive. The sell out allows you to evaluate Amazon orders in relation to what is selling, to determine how Amazon is positioned.
🔎 How to calculate the sell out?
⏱ Frequency Indicator to watch regularly, three times a week minimum!
7. Sourcing share
This KPI allows you to know if Amazon is sourcing from another supplier. Take a global view when tracking, if you identify a potential problem, look at the ASIN level.
🔎 How to calculate the sourcing share
Sell out sourcing = All the products of the brand sold by Amazon provided by the brand in question directly to Amazon. Sell out manufacturing = All of the products of a brand that Amazon has sold (provided by the brand or other suppliers)
This KPI is very time consuming to calculate via Vendor Central (several steps and exports), we recommend using a retail analytics tool to save time.
⏱ FrequencyIndicator to be monitored monthly
8. Net PPM (Net Pure Product Margin)
The Net PPM allows you to know the level of profitability of Amazon on your products. If the Net PPM decreases, it means that Amazon is losing profitability on the product and may stop selling it. (The product will be categorized as CRAP = Can’t Realize A Profit).
The Net PPM will depend on the category of the product and its price, so it is difficult to give a range of comparison.
🔎 How to calculate the net PPMThe net PPM is available directly in Vendor Central.
⏱ FrequencyIndicator to be monitored monthly
9. Conversion rate
The conversion rate is essential to evaluate how to grow and improve your business. Indeed the conversion rate of a page will depend on many levers that can be optimized:– Content: Optimize your content, (A+ page, sharp and clear images, neat description…)– Customer review management: Look at your reviews, an average rating below ⅘ will not only hurt your visibility, but also the consumer’s trust in your products.– Ads: Use media campaigns to grow your traffic on your page and thus impact your conversion rate.
🔎 How to calculate the conversion rate
⏱ Frequency Essential indicator, follow it weekly.
Because advertising on Amazon is key, we put together the top 10 KPIs to track when managing advertising campaigns on Amazon.