Why Most Amazon Brands Fail: Ignoring These 20 Critical KPIs

Today we’re diving into a critical aspect that separates the thriving Amazon brands from those that falter. Many wonder why some brands skyrocket to success on Amazon while others struggle to gain traction. Often, the difference lies not just in products or marketing but in the keen monitoring of specific metrics—Key Performance Indicators (KPIs) that many brands overlook to their detriment.

We’ve compiled a list of the Top 20 KPIs that every Amazon brand must track to truly understand their business dynamics. These aren’t just numbers; they’re the pulse points of your brand’s health and growth on one of the world’s most competitive platforms. From inventory turnover to customer lifetime value, understanding these KPIs can dramatically enhance your strategic decisions, helping you optimize every aspect of your operations from marketing to supply chain management.

So, let’s roll up our sleeves and explore these transformative metrics that can propel your Amazon strategy to new heights.

Top 20 KPIs for Amazon Sellers

1. Conversion Rate (CR)
  • Formula: Divide the number of sales by the number of visitors and multiply by 100.
  • Tracks the effectiveness of your listing to convert visitors into buyers.

2. Traffic (Sessions)
  • Monitor the total number of visits to your product listings to gauge market interest.

3. Average Order Value (AOV)
  • Formula: Divide the total revenue by the number of orders.
  • Measures the average spending per transaction.

4. Total Revenue
  • Simply the total income from sales before expenses.

5. Profit Margins
  • Formula: Divide net profit by total revenue and multiply by 100.
  • Essential for assessing the financial health of your operations.

6. Inventory Turnover Rate
  • Formula: Divide the cost of goods sold by the average inventory.
  • Helps manage stock levels and understand sales efficiency.

7. Sell-through Rate
  • Formula: Divide the number of units sold by the number of units available and multiply by 100.
  • Useful for inventory management.

8. Return on Advertising Spend (ROAS)
  • Formula: Divide the gross revenue from ad spend by the cost of ad spend.
  • Indicates the profitability of your advertising campaigns.

9. Advertising Cost of Sales (ACoS)
  • Formula: Divide ad spend by sales and multiply by 100.
  • Critical for measuring advertising efficiency.

10. Organic Sales Percentage
  • Formula: Divide organic sales by total sales and multiply by 100.
  • Reflects dependency on paid versus organic traffic.

11. Customer Acquisition Cost (CAC)

  • Formula: Divide total marketing and advertising costs by the number of new customers acquired.
  • Calculates the cost to acquire a new customer.

12. Customer Lifetime Value (CLTV)

  • Formula: Multiply average order value by purchase frequency and then by customer lifespan.
  • Predicts the total revenue a business can expect from a single customer account.

13. Cart Abandonment Rate
  • Formula: Subtract the number of completed transactions from the number of carts created, divide by the number of carts created, and multiply by 100.
  • Helps identify issues in the sales funnel.

14. Buy Box Percentage
  • Formula: Divide the time in the Buy Box by the time the listing is active and multiply by 100.
  • A higher percentage increases sales opportunities.

15. Product Ranking for Key Search Terms

Measures visibility and SEO effectiveness.

16. Order Defect Rate (ODR)
  • Formula: Divide the number of defective orders by the total orders and multiply by 100.
  • Important for maintaining customer satisfaction and account health.

17. Replenishment Frequency
  • Formula: Divide days of inventory by days between reorder.
  • Ensures product availability and operational efficiency.

18. Net Promoter Score (NPS)
  • Formula: Subtract the percentage of detractors from the percentage of promoters and multiply by 100.
  • Gauges customer satisfaction and loyalty.

19. Page Views and Conversion Rate by Page
  • Formula: Divide the number of sales by the number of page views and multiply by 100.
  • Identifies high-performing and underperforming pages.

20. Repeat Purchase Rate (RPR)
  • Formula: Divide the number of customers who made more than one purchase by the total number of customers and multiply by 100.
  • Measures customer loyalty and the effectiveness of retention strategies

Empower Your Amazon Journey

Understanding and tracking these KPIs will give you a comprehensive view of your business’s performance and areas for improvement. For a more in-depth look at each KPI and tips on how to enhance them, download your free comprehensive KPI guide today. If you need help analyzing these metrics or tailoring them to fit your business model, feel free to book a discovery call with me. Let’s optimize your Amazon business together for maximum success!

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Krystel Borg

Krystel possesses a unique expertise in transforming company sales, thanks to her knack for devising strategic blueprints and fostering high-performing teams. Throughout her career, she’s been at the helm of businesses that have burgeoned from mere startups to eight-figure giants. She boasts two notable exits in the CPG sector, with one being the acclaimed Swander Pace Private Equity Group.
Her profound understanding of product-centric ventures spans the entire lifecycle—from conceptualizing brands to overseeing logistics, supply chain management, and devising robust digital marketing initiatives. One of Krystel’s standout accomplishments in sales is her tenure with QVC, where she not only celebrated over 100 on-air appearances but also clinched a nomination for their coveted “Rising Star” award, sharing the limelight with industry titans like Sephora.
With a proven track record of scaling startups to monumental heights—like achieving $1.5M in revenue within a year and subsequently doubling it—and salvaging firms from deficits to enjoy $1.8M profits, Krystel’s prowess is undeniable. She masterfully steered a company to emerge as an unrivaled leader in its sector by multiplying its sales from $4M to $18M in half a decade.
In recent years, Krystel has channeled her vast experience into mentoring, playing pivotal roles as a consultant or board member to embolden fellow entrepreneurs. Her versatility is further accentuated by her engagements across diverse industries

Navin Williams

With 11 years of leadership experience in Business Management, Navin Williams has consistently delivered transformative results. His leadership has championed small businesses on their path to accelerated growth, steered large enterprises towards a surge in efficiency by up to 40%, and provided strategic direction to e-commerce companies navigating the dynamic digital marketplace.
His toolkit of expertise encompasses spearheading organizational transformations, enhancing business agility, and driving process efficiency across a spectrum of domains and frameworks, with a particular emphasis on Lean principles. Understanding the unique challenges and opportunities presented by both brick-and-mortar operations and digital storefronts, Navin is adept at crafting strategies that align with specific business objectives.
His commitment to rigorous reporting ensures transparency and data-driven decision-making, solidifying his reputation as a versatile and results-driven business leader.

Jane Sampson

Jane Sampson boasts over 15 years in the Apparel & Home Fashions sector. Throughout her career, she’s demonstrated a depth of knowledge in areas like Design, Product Development, Global Sourcing, and Market Research. Her business acumen is backed by a proven record in Procurement, Business Planning, and Sales.
Central to Jane’s professional journey is JANEEN HOME LLC. This company, under her leadership, specializes in introducing new textures, designs, and prints for bedding and soft home lines. Her brand’s presence is felt in prominent retailers such as Macy’s, Ross Stores, Hobby Lobby, Bealls, and Belk.
Beyond her corporate achievements, Jane shares her industry insights as an Adjunct Professor at Baylor University. She remains committed to fostering growth and nurturing future talents, ensuring they’re equipped for success in the dynamic world of Apparel & Home Fashions.

Archana Reddy Williams

From the corporate world to the dynamic world of Amazon, Archana’s journey has been nothing short of transformative. As a seasoned management consultant, corporate leader, and a 7-figure Amazon seller, she founded CartKaboom with a vision to demystify the Amazon maze for brands.
What drives Archana? Her passion for ensuring every brand gets a fair shot at success on Amazon. CartKaboom works tirelessly as a partner, acting as a true extension of brands, ensuring they shine in the Amazon marketplace. While she cherishes working with all types of businesses, Archana’s heart holds a special place for family-owned and women-led brands. Drawing from a wealth of firsthand insights and tailored strategies, she’s had the honour of propelling many of these businesses to 7+ figure successes on Amazon.
At the heart of CartKaboom, it’s not just about metrics. Archana delves deep into a brand’s narrative and core values, designing Amazon-focused strategies that amplify their presence. From listing enhancements and keyword optimization to effective advertising campaigns, Archana ensures that brands don’t just survive, but thrive in this ecommerce behemoth. Outside the world of ecommerce, Archana is active in real estate. As an Accredited Real Estate Investor and a CRE General Partner, she oversees diverse commercial real estate ventures, bringing the same dedication and business acumen to this vertical.
At the core of it all, Archana’s faith in God and her family remain her pillars. She resides in Dallas, Texas with her husband and three kids. For relaxation and fun, she enjoys travelling, hiking, and exploring nature, seeing it as a reflection of God’s beauty. She’s also active in local church initiatives, emphasising community growth and unity.