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Mastering Your Amazon Vendor Data: A Comprehensive Guide

Empowering global brands through holistic BI solutions!

Today, we're diving into how to navigate your Amazon Vendor data from a customer perspective and uncover the root causes of your performance.

Author:

Benjamin Weyrich

2 minutes read

Author:

Benjamin Weyrich

Using a straightforward framework, you'll learn how to analyze your data to understand the impact of various activities on your business.

Start with a Customer-Centric View

To truly grasp your business development, you need to examine your data from the customer's perspective. This involves focusing on key metrics that reflect the customer's journey:

Revenue = Sales Price * Sold Units
Sales Price = Revenue / Sold Units
Sold Units = Traffic * Conversion Rate - Customer Returns
Traffic (Glance Views) = Total Traffic - Lost BuyBox Stock - Lost BuyBox 3P
Conversion Rate = Sold Units / Traffic
Return Rate = Sold Units + Returned Units

By breaking down each metric, you can identify how the data interrelates and pinpoint the root causes of your performance.

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Key Metrics in Detail Revenue

Revenue is a critical metric for measuring business success. Analyze it by considering:

Year-to-Date Revenue:

Your total revenue to date.

Revenue Development:

Changes in your revenue over time.

Revenue Trend:

Revenue movements over the last few months.

Revenue Contribution:

Revenue distribution by countries and product categories.

By examining these factors, you can understand your overall performance and areas needing attention.

Sales Price

Sales price, influenced by price changes and customer demand, impacts your conversion rate. Key aspects to consider are:

Sales Price Level:

Trends in your product prices.

Shift in Customer Demand:

Changes in customer preferences for higher or lower-priced products.

Higher prices can lead to lower conversions and vice versa. Monitoring these metrics helps you understand their interplay and impact on your NetPPM (Net Pure Profit Margin).

Sold Units

Sold units reflect your sales volume, calculated as Traffic * Conversion Rate - Customer Returns. Analyze it by:

Sold Units Level:

Number of products sold.

Sold Units Development:

Changes in sold units over time.

Sold Units Trend

Shifts in customer demand among different products.

Understanding these aspects helps you gauge customer satisfaction and demand.

Traffic

Traffic measures the number of visits to your product detail pages. Key factors include:

Traffic Level:

Number of visitors to your pages.

Traffic Development:

Changes in traffic over time.

Traffic Trend:

Traffic movements in recent months.

Traffic Contribution:

Traffic distribution by countries and product categories.

Understanding these aspects helps you gauge customer satisfaction and demand.

Conversion Rate

Conversion rate is the percentage of visitors who purchase your products. Analyze:

Conversion Rate Level:

Purchase rates post-visit.

Conversion Rate Development:

Changes in average conversion rates.

Improving product content quality can enhance your conversion rate and sales.

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Return Rate

Return rate, influenced by product quality and customer expectations, affects profitability. Key aspects are:

Return Rate Level:

Percentage of returned products.

Return Rate Outliers:

Products with high return rates.

Ensuring accurate product content can reduce returns and improve customer satisfaction.

Conclusion

By examining these metrics, you can effectively analyze your Amazon Vendor data to understand your business development and identify performance root causes. This approach allows you to move from symptoms to root causes and take appropriate actions.

If you have any questions or feedback, simply contact us here.

Thank you for reading and stay tuned for the next issue!

Putting the pieces together

Understanding these nuances enables better strategic decisions and can be enhanced by platforms like Catapult, which provides real-time, integrated data views across departments, crucial for manufacturers operating in multiple countries. Our tool, crafted with input from Amazon vendors, features a centralized dashboard that automatically converts Amazon data into a clear, actionable perspective on your performance.