Metrics to monitor on Prime Day

Prime Day is not far away. However, it’s never too early to start thinking about the key metrics you will need to monitor during this event. They will help you understand whether Amazon Prime Day 2022 will be a success for you or…simply an opportunity to improve for future events.

Here’s our list of the 5 main parameters that we think you should keep in mind if you want to increasingly boost returns on your Amazon marketing investments!

Average Unit Retail (AUR)

Let’s start with the Average Unit Retail (AUR) of a product. This metric represents the total revenue in euros (i.e., net sales of the product) divided by the total number of units sold. For example, if you have a  total revenue of €4,000 for 50 products sold, then the AUR of this product would be €4,000 divided by 50 units = €80. But what does this metric reveal?

Generally speaking, an AUR that is too high may lead to fewer sales. Your competitors may in fact have a price advantage. On the other hand, an AUR that is too low could indicate the possibility of a ready margin of additional profit if the price is increased.

In short, the AUR is a good tool for price optimisation. A must throughout the year, but obviously even more important on Prime Day.

Order Defect Rate (ODR)

The order defect rate (ODR) is the customer service parameter. Amazon considers an order to be defective if one of the following cases occurs

  • an A-to-Z warranty claim is made
  • a customer makes a refund request
  • a negative review is left (1 or 2 stars).

Amazon requires its sellers to always maintain an ODR of less than 1% to keep their accounts in good standing. Sometimes negative feedback or product defects are inevitable. However, if one focuses on customer service excellency, the number of satisfied customers will be significantly higher than the unsatisfied ones.

ACoS and TACoS

ACoS stands for ‘Advertising Cost of Sales’, a metric that is obtained by dividing the total expenditure on Pay-Per-Click (PPC) ads on a product by the total number of sales generated by these ads. Amazon sellers prefer low ACoS scores, as they indicate the highest return on investment for PPC campaigns.

TACoS (Total Advertising Cost of Sales), on the other hand, analyses the overall effects of PPC advertisements. In fact, it tallies the total number of sales of a product and not only those obtained through the PPC campaign. In other words, for high-volume events such as Prime Day, it may be worthwhile to maintain a high TACoS campaign. Especially if it promotes brand recognition and leads to overall sales growth that is likely to create long-term value.

Conversion rates

Conversion rates are obtained by dividing the number of items ordered by the number of views of the product page. This metric shows the percentage of persons who visit the page of the product and end up buying it.

If the product has a low conversion rate, the seller can try to improve it through various strategies:

  • by lowering the price
  • by optimising keywords and listings
  • by improving the number and quality of reviews
  • by improving offers on new products

Customer Response Time

It is important to respond to messages received from buyers within 24 hours. In general, this is a good rule to follow all the time. However, it’s especially important when millions of people shop on Amazon and expect exceptional products and customer service. In other words, customer response time indicates how long it takes you on average to respond to the messages your Amazon store receives.

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