Did you exceed expectations with your Amazon sales in 2022? You have the opportunity to increase it in 2023, regardless of whether you are satisfied with it.
If you made a lot of money last year, celebrate and thank yourself. However, do not be discouraged if you barely survived. Keep in mind that Amazon remains the world’s largest e-commerce platform. You can make up for any losses you suffered last year thanks to its large customer base. There are a number of important aspects to boosting sales performance that go beyond optimizing an Amazon listing. The information you need to know is provided below.
How Does Amazon Evaluate Performance in Sales?
Before you can figure out how to generate organic sales on Amazon, you need to understand its metrics. Since Amazon is a business that cares about its customers, it measures the success of its sellers by how well they serve customers. As a result, it’s critical to understand these five metrics and how to use them to boost your Amazon sales rank.
1. Order Defect Rate (ODR): Your ODR shows how well you handle customer complaints before they escalate and how accurately you report the condition of your stock.
The defect is defined in three ways by Amazon: a bad product review, a slew of complaints from customers, and a chargeback on a credit card. ODR is calculated by dividing the total number of orders received within a given time period by the number of defect orders received by the platform’s system.
- How to Prevent Your ODR from Spiking: Always put your customers’ needs first. Resolve any problem as soon as it arises. Being attentive and prompting does more than just reduce negative feedback. However, it also contributes to an increase in traffic to your product listing, thereby increasing sales.
2. Pre-Fulfillment Cancellation Rate (PFCR): To determine your PFCR, Amazon looks at the percentage of canceled orders you received before the goods were shipped. Your PFCR should be less than 2.5% at best. If your PFCR is higher, you failed to meet Amazon’s target.
- How to Prevent Your PFCR from Spiking: Manage your stocks with care. Always keep your record current. You should be able to see how many units you have available and how many units make up the inventory you sent to Amazon. With this, you can keep track of the updates to the platform that happen whenever a customer buys your products.
3. Late Dispatch Rate (LDR): Amazon examines the proportion of orders that you fail to dispatch on time to determine your LDR. You failed to meet the market’s target if your LDR was higher than 4%. When the shipping details are confirmed after three days or more, an order is typically late.
- How to Prevent Your LDR from Spiking: You must ship customers’ orders as soon as they confirm them to avoid late dispatches. If not, ensure that you record everything and promptly handle shipping. With this, you must update your seller account information. Your LDR will rise if you fail to comply.
4. Policy Violations: Amazon will notify you whenever you violate the policy. Because of this, you should check your Performance Notifications on a regular basis. Go to Seller Central’s performance section to locate the warnings.
- What You Need to Know About Notifications: You should always check your notifications. You will be informed promptly in this manner, particularly if issues require immediate attention.
You have read all notifications if you see a green tick. The absence of a yellow tick, on the other hand, indicates that none of them has been read. Avoid going around a large red cross. It’s a sign that Amazon is keeping a close eye on your seller account.
5. Contact Response Time (CRT) Between Buyer and Seller: According to Amazon, sellers should respond to customers within 24 hours. Because of this, you should check your messages on a regular basis. You will be able to respond as soon as possible if you do this. Customers are irritated by delayed responses. You will not be able to provide the platform-required high-quality customer service if this occurs.
- How to Avoid Having a Negative Effect on Your CRT Metric: Dedicate a specific time each day to only reading and responding to messages. At all costs, adhere to it. You may miss important messages that require immediate response if you do not incorporate this task into your daily work activities.
How to Increase Amazon Product Sales: Seven Tactical Methods
Selling more products on Amazon necessitates a tactical strategy that combines strategic methods with close observation and rapid response. Seven strategic practices that will help you get the best results are listed below.
1. Regularly optimize your listings. You don’t have to look far and wide for information on how to properly optimize your pages on Amazon using keywords like “how to improve my amazon listing.” The essential aspects of optimizing your listings are outlined in the following checklist. Not only should they be able to convince your intended customers, but they should also adhere to Amazon SEO’s algorithms.
- Relevant keywords exist.
- Include the brand name, features of the product, materials used, and other important information about the product.
- Professionally taken photographs that meet Amazon’s requirements are in place.
- Images of a high quality highlight the product’s advantages.
- Make the pages optimized for both Google and Amazon.
A Category Listing Report, which you can request access to from Seller Support, is helpful. Your listing will be presented as a flat file in the report. It’s easier to spot mistakes and gaps in this format.
2. Make use of a number of different channels to market your products. It goes without saying that marketing on Amazon puts your products in front of your intended customers. However, you should include additional channels outside of the platform in your marketing campaign to get the most out of it. Additionally, having a brand-specific website is helpful. In a nutshell, the following is a list of well-known channels through which you can promote your goods.
- Amazon
- Your website
- Your online store
- eBay
- Etsy
- PPC advertisements
- Affiliate marketing websites
- Guest posts on a variety of blogs
3. Encourage customers to leave positive reviews; these reviews are genuine testimonials. They are effective in persuading potential customers to buy. They are successful in improving the ranking of your page in the process. As a result, your Best Seller Ranking (BSR) is affected. More significantly, They give you valuable information that you can use to improve your product and service and make the experience of your customers better in the future.
4. Make use of Amazon’s Sponsored Advertising options. Selling your product on Amazon puts your brand in direct contact with potential customers. Use a variety of strategies to take advantage of the advantages of PPC advertising. Advertising on the market boosts conversion in various stages of the sales funnel when used correctly.
5. Take note of your performance using established metrics because Amazon closely monitors the performance of sellers. As a result, it has come up with a number of metrics that measure each seller’s ability to provide excellent customer service. These are the main ones:
- Policy Violations Buyer-Seller Contact Response Time (CRT)
- Order Defect Rate (ODR)
- Pre-Fulfillment Cancellation Rate (PFCR)
- Late Dispatch Rate (LDR)
6. Maintaining a well-stocked inventory improves your Amazon pages’ organic ranking. If you were to handle it on your own, you might become overwhelmed. It’s possible that you won’t have much time to concentrate on other aspects of running your business that are just as crucial. You can make use of specially programmed software or rely on the skill of skilled staff who can manage your inventory on your behalf to make the process go as smoothly as possible.
7. Be highly eligible for Buy Box by dominating the competition. To survive in the highly competitive marketplace, you must learn about your rivals’ activities. You will have a better chance of developing strategies that could outperform them if you are familiar with their tactics. Being highly qualified to win the Buy Box will assist in expanding the influence of your brand.
Aids to Sales Performance: Apps and Tools
Because keeping track of your performance is important for increasing sales, taking the measures that were suggested earlier gives your company an advantage. You might find it easier to use sophisticated apps designed to speed up these processes when you’re looking over small details.
- CASHCOWPRO: Sellers who have an FBA account can benefit from this comprehensive analytics and performance tracking app.
- Forecastly: The app notifies you when your stocks run out. In addition to this benefit, it provides accurate recommendations regarding the quantity or units required to replenish your inventory and the best time to order them. Check out the dashboard of this app if you want to know which fees apply to which in a given circumstance.
- Shopkeeper It organizes and displays all relevant data so that you can quickly and easily access them.
- SellerLegend: If you want to know more about how well your FBA works, use this app. You can make use of the power suite’s tools for this.
Why it’s important to choose the right path
Increasing your revenue doesn’t just mean selling your products at any Amazon sale in 2023. You will have a much easier time developing an efficient strategy for increasing sales in the future if you are familiar with and comprehend the details presented here.
Additionally, doing so improves customer satisfaction. The overall quality of the service you provide is enhanced by the combination of strategic measures, cutting-edge technological advancements, and diligent monitoring.
