Emanuel Ruiz breaks down the four metrics Amazon FBA sellers need to track: impressions, click-through rate, conversion rate (20% for supplements, 2% for products over $100), and TACoS, which measures advertising spend against sales.
There are 4 metrics that matter most to be successful on Amazon FBA private label. Number 1, impressions. How are you driving traffic to your actual listing? Because you can't expect to get any type of sales if you don't run any traffic. Number 2, click-through rate. Okay, as a new seller, you might not have a number of reviews like your competitors, but how does your listing photo look like? How does your title look like? What is the pricing compared to the actual market of your actual product, right? You're running traffic with impressions. Make sure you take advantage of that with your click-through rate. Number 3, conversion rate. People mess this up all the time. Conversion rate matters in different types of category. If you're like in the supplements niche, you want to have like a 20% conversion rate. If you're basically 99% of sellers, If your product is over $100, expect to have around a 2% conversion rate. If it's below $50, expect to have at least a 5 to 6% conversion rate. So conversion rate matters. And last but not least, TACoS. You're driving all this traffic with Amazon PPC. You think you might be profitable, but if you don't understand TACoS, you don't understand this game of Amazon FBA.
