Making the Most Out of Your Amazon Selling Analytics in 2023
You’ve started selling on Amazon. Customers are buying your products and you’re having some success — but you want your business to really start growing. But with around 9.5 million Amazon sellers globally (and growing by the day)¹, you need to understand what’s going on in your Amazon business to edge out the competition. You do this by understanding your Amazon selling analytics.
The good news is that Amazon provides a wealth of data and information about your products, customers and business. But the bad news is that this is often hard to find, understand and use. Information means nothing without the ability to, first, access it and, second, draw insights from it.
In this blog, we’ll explain Amazon’s analytics capabilities, how they can help Sellers and how you can use an Amazon insights tool to make the most out of your Amazon selling analytics.
What are Amazon selling analytics?
Amazon selling analytics are the data and information that tell you what’s going on under the hood of your Amazon business. It includes sales data but, beyond this, analytics on customers, advertising, product performance and competitor information. They’re the ‘why’ behind the ‘what’ of your Amazon business.
Brand Analytics is a collection of metrics, analytics and reports Amazon provides within Amazon Seller Central. This feature, however, is only available to registered brands on Amazon, meaning smaller or newer businesses have a harder time finding and drawing this crucial information together.
Why are Amazon selling analytics important?
These analytics are crucial because it allows Sellers to make changes to their business and improve its performance. If you’re not looking at why your business is performing as it is, you won’t know what’s going right and what’s going wrong. That means you won’t know how to make decisions to improve it.
Understanding selling analytics is how businesses can:
- Understand and improve key metrics: Metrics are the language you use to track what’s going on with your business, from Click Through Rate to Conversion Rate (more on this later).
- Improve PPC campaigns: Understand which ads are working, and which aren’t, and optimize accordingly.
- Understand and retain your customers: By getting to grips with what’s selling, what’s not, and why, you gain high quality insights into customers’ patterns of behavior. This helps you understand who is buying which product, when and why — and therefore who to target and retarget to increase customer retention and loyalty.
- Make data-driven decisions: By understanding and using selling analytics, changes to PPC campaigns or decisions targeting certain customers over others are backed up by the data. For example, you may want to prioritize a specific product due to a spike in sales or completely change your product dashboard.
Using an Amazon analytics tool
But data-driven decisions are only possible when you can access, understand and use the data. Unfortunately, Amazon doesn’t exactly make it easy to find the data they hold about your business. And once it’s found, drawing insights from raw information can be tricky and intimidating.
Nozzle, an Amazon analytics tool, makes this process easy by collecting the relevant data and presenting it in a way Sellers can understand.
Track your metrics
Whether you’re doing the leg work yourself and pulling information directly from Amazon or using an analytics tool like Nozzle, there are key metrics to track to keep on top of your Amazon selling analytics. Using these metrics help you discover exactly what’s going on in your business and, as a result, how to respond to trends and customer behavior.
Important metrics to track include:
- Click Through Rate (CTR): Your CTR reveals how well your ads are performing. It measures how many clicks your adverts are receiving versus the number of times it’s viewed.
- Cost Per Click (CPC): CPC determines how much you pay for each click on your ad. The higher the cost of the click, the more you’re spending.
- Conversion Rate (CVR): CVR shows the percentage of shoppers who have clicked on your ad and moved on to buy your product — to ‘convert’. If your ads are converting well, your ads are accurately advertising your product and connecting with your customers.
- Average Order Volume (AOV): Understanding your average order volume helps you see whether customers are coming to your business for just one thing, or whether you have the right products to encourage them to buy more.
- Buy Box Percentage: The metric quantifies how often your products appear in the Buy Box when a customer is viewing the same product, but when that product is sold by a different Seller. This can tell you how well your business is doing overall.
Suggested Reading: Read more about the key metrics you need to track to keep on top of your Amazon business in our blog: 6 critical Amazon metrics for Sellers
While Amazon can give you the information that lets you track these metrics, and provides the information in metric form to Brands who have the footprint and revenue to pay for it, Amazon doesn’t present this information in the most helpful way. For example, you can view your CTR through your Amazon Ads account, but you’ll need to calculate your CPC yourself.
Get insights as well as analytics
Using these metrics to keep track of your data is important. But without bringing metrics together to understand how your business is performing in the round, their value can be limited. Combining and analyzing these metrics give you the key information you actually need: insights.
Insights help you make informed decisions, helping you map out short and long term selling strategies with less risk, lower cost and more profit. And a tool like Nozzle brings together all your Amazon selling analytics and reveals insights from them. Insights include:
Purchase analytics helps you understand who’s buying what when and how. Nozzle’s tool lets you see, by each ASIN in your business, what customers bought next and what they frequently bought together. This helps you understand which products to promote to customers after (or during) their purchase and create next-level cross-selling strategies. This can boost your AOV and customer loyalty.
Advertising cost of sales (ACoS)
By dividing your revenue from PPC ads with your CPC, you end up with one of the most invaluable metrics on Amazon: ACoS. Closely linked with RoAS, which describes the return from ads compared to ACoS’ focus on the cost of ads, understanding your ACoS helps you get to grips with how much you can spend on ads while breaking even or making a profit.
With this insight, you can set a target ACoS for each product. Together with purchase analytics, you can see how much you should spend advertising each product, when and to why — with Nozzle’s insights helping you understand why.
It’s cheaper to retain a customer than acquire a new one. Plus, existing customers are 31% more likely to try new products than new customers.² In short, understanding your customer retention information is essential. By bringing together your customer information, Nozzle shows you your customer retention rate per ASIN after each customer purchase.
This helps Sellers determine the best areas for growth and optimize your ad spend to target the right customers.
Customer Lifetime Value (CLV)
Customer lifetime value is about predicting future purchases and the growth of customer repeat purchases. CLV helps businesses manage their CAC through long-term planning which allows for targeted advertising.
Understanding CLV gives you an edge over the competition. Understanding selling patterns is important, but moving beyond product analysis and into customer analysis, and therefore customer-focused decisions, is what can really lower your ACoS and your CAC, and bring up your AOV.
Nozzle helped Amazon business Cabinet Health understand their CLV, which helped them understand where to increase their ad spend while remaining profitable. This led to a 156% increase in total sales.
Suggested Reading: For an in-depth look at the metrics Amazon Sellers need to master to thrive, read our guide: Amazon Analytics Metrics for Amazon Sellers: The Ultimate Guide
Amazon selling analytics into Amazon selling insights
It’s not uncommon for smaller Sellers or Sellers new to Amazon to get stuck when faced with their business’s data. They can be ill-equipped to take advantage of it. This can lead to decisions that means higher costs and a poor return on ad spend, at a time when many businesses are fighting to break even.
But making the most of your Amazon selling analytics in 2023 demands two things: first, gaining access to your selling analytics and understanding them and, second, turning the analytics into insights. These insights can then be used to make data-driven decisions in the short and long term.
Nozzle is an Amazon analytics tool that not only brings your Amazon business’s information and analytics together in one place but analysis it and presents it in a way to provide insights, too. Don’t just take our word for it: businesses that we’ve worked with have seen over a 100% increase in total sales thanks to our tool.
See how Nozzle can help you make the most of your selling analytics, and your Amazon business, and start a free trial today.