KPIs Vendor , or how to know what to measure among so many metrics. We'll look at the Key Performance Indicators (KPIs) that truly make a difference in Amazon Retail:
Growth kpi
Growth KPI help you understand how your business is going on Amazon and what is promoting that growth.
Shipped Revenue
Your shipped revenue represents the total sales value of products shipped from Amazon warehouses to customers. It's a direct measure of your sales performance and the primary KPI for vendor managers when evaluating your account.
Shipped Cogs
The cost of goods sold (COGS) sent refers to the total cost of all products that have been sold and sent. The difference with the previous KPI is that it is not based on the average sale price, but on your purchase cost to Amazon.
The COGS submitted provide information about your direct costs in your 1P relationship with Amazon, helping you calculate the gross margin and get a clear idea of the financial health of your business.
Avenge Selling Price (ASP)
The average sale price (ASP) is the average price to which your products are sold. It is an indicator of the effectiveness of your price strategy and the perceived value of your products in the market.
Amazon follows market prices, so any change in your ASP can lead to cost support requests or affect your chances of accepting costs
Therefore, monitoring the ASP of your portfolio allows you to understand these factors that influence the margin of Amazon and adjust your portfolio strategy.
Avenge cost per unit (ACU)
Cost Per Unit (ACU) is the average cost Amazon pays for each product sold. It's also known as average cost or list price.
ACU is a good metric for understanding the less obvious reasons for your growth on Amazon.
Profitability kpi
Now let's see how to measure your profitability with Amazon.
Pure net profit margin (net ppm)
measures Net Profit Margin (Net PPM) the profitability of your Amazon supplier account. It's a favorite metric among supplier managers because it includes all the cost components that brands and Amazon have visibility into. Measuring your Amazon Net PPM is vital because any changes can significantly impact your supplier account.
Gross Profit
is Gross profit the difference between your revenue shipped and your cost of goods sold (COGS) shipped with Amazon. It provides an overview of your business's financial health by showing how much you earn after subtracting the direct costs associated with selling products.
Measuring the gross utility of your business at Amazon allows you to see the efficiency of your production process and the pricing of your products.
A high gross profit margin indicates that your company effectively manages its direct costs and fixes prices to its products properly. But, a bass margin of gross utility can be an alert sign of inefficient production, an ineffective or both pricing.
Ebitda
EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It is a widely used measure of a company's profitability and operating performance.
By focusing on profits derived from the main commercial operations, Ebitda gives you a vision without obstacles to your operational efficiency without the influence of factors such as tax environments, financing decisions and non -monetary expenses.
KPI operations
The following is to review the operational performance of your supplier account. We present the key metrics that your equipment must measure to understand your supply chain and inventory performance and identify defects in the processes.
Sales forecast accuracy
measures Sales Forecast Accuracy how accurate the sales projections you provide to Amazon are. Greater accuracy in sales forecasts helps the platform better plan inventory and avoid supply issues.
This metric is important because a low accuracy of the sales forecast can lead Amazon to have less confidence in your future projections, which in turn can negatively affect your volumes of orders.
Compliance cycle time
The time cycle fulfillment is the average time it takes for an order to be shipped after it is placed. It is a key metric for measuring the efficiency of your supply chain and ensuring that your customers receive their products on time.
A prolonged compliance cycle time may indicate problems in your compliance process, such as manufacturing delays, inventory problems or logistics inefficiencies. Monitoring this metric is useful to identify and address these bottlenecks to improve customer experience.
Conclusions
These KPIs are essential for Amazon suppliers to measure and understand their business performance on the platform. By focusing on these key metrics, you can gain valuable insights to drive profitable growth and greater operational efficiency.
