13 Best Metrics for Amazon PPC to Help You SCALE Your Amazon Sales
The Best Metrics For Your Amazon PPC and Amazon FBA Business
This is a question that I get quite often on the blog and on the YouTube channel. Quite honestly, the only number that matters in a business is your cash flow. Cash is king when it comes to an Amazon FBA business. The more you have, the healthier your business will be. I would highly recommend reading the book Profit First to learn a great system on how to always ensure your business has cash, an emergency plan, is profting, and thriving.
With that out of the way, let’s discuss the 13 numbers that we track on a weekly basis to check on our Amazon PPC campaigns and in turn check in to see how our Amazon FBA business is doing.
This is the number of times that the advertisements were able to be seen by potential customers. This shows how popular a keyword is on Amazon. It can show when there is a surge or decrease in the number of shoppers on Amazon. This is a good number to watch to keep track of how much REACH your advertising has. If you see a sudden decrease in impressions, then you might have a competitor outbidding you or your product might not be advertising anymore.
This is the number of times your advertisement has been clicked. It is very important to know your normal conversion rate along with the number of clicks. By knowing conversion rate (unit session percentage) you can make the educated decision when to pause a keyword in a campaign. For example, if your conversion rate is 10%, then you can pause a keyword once it gets to 10 clicks without a purchase.
3. Average Cost-Per-Click
The average Cost Per Click on a keyword helps to know the cost of a keyword and whether or not the keyword is worth pursuing. Some keywords may be very expensive, and not worth going after for your business. More expensive keywords will make it more difficult to scale your Amazon PPC campaigns and therefore your Amazon business.
4. Sponsored Products Advertising Spend
This is just your advertising spend on Amazon PPC, or Amazon Sponsored Products. Alone this number doesn’t mean much, but as we combine it with a few more numbers later on, it provides a lot of data.
5. Sponsored Products Advertising Orders
This is the total number of times a product has been purchased.
6. Sponsored Products Advertising Sales
This is the total revenue from an advertising campaign.
7. Sponsored Products Cost Per Acquisition (SP CPA)
Sponsored Product Cost Per Acquisition is the cost it takes to generate a one unit order. Take the spend from above and divide it by the number of advertising orders. SP CPA = SP Sales/SP Orders
8. Total Orders
It’s important to track the total number of units that have been purchased both through Amazon PPC and through organic sales.
9. Total Sales
Track the total revenue from Amazon PPC and through organic sales.
10. NET Profit
This is simply the amount of money gained or lost after all costs have been subtracted from total revenue. This is your profit.
11. Total Cost Per Acquisition (Total CPA)
This is the Total Cost Per Acquisition on the entire business, which includes sales from both advertising as well as organic sales. Total CPA = Total Sales/Total Orders
12. Sponsored Products Advertising Cost of Sale (SP ACoS)
Sponsored Product Advertising Cost of Sale (SP ACoS) is the ratio of Amazon advertising spend to Amazon advertising sales. ACoS = Ad Spend/Ad Sales
13. Total ACoS (TACoS)
The total advertising cost of sale for the entire account gives you TACoS. This includes organic sales as well. Total ACoS = SP Ad Spend/Total Sales. This is THE MOST important metric to monitor and you want it to be around 10-15%. This will tell you how much Amazon advertising is driving your sales (higher TACoS) or how much organic sales are driving your sales (lower TACoS).
TACoS will be high when you first launch a product, but after 6 months to a year, if you can’t bring it down to that 10-15% range, it might be time to reevaluate your place for that product and advertising.
Check out the FREE Amazon FBA spreadsheet that you can see in the video above, which helps you track all these numbers.
What’s Next With Your Amazon PPC?
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Each lesson is also below.
- Step 1 – Track and Measure Your Results
- Step 2 – Research Your Competitors
- Step 3 – Simplify Your Amazon Keyword Research
- Step 4 – Amazon Listing Optimization
- Step 5 – Set Up Your Amazon PPC Campaign
- Step 6 – SCALE your campaigns.
- Step 7 – Optimizing Keyword Bids for Increased Profitability
- Step 8 – 9 Best Amazon PPC Auto Campaigns Hacks and When to Use Auto Campaigns
- Step 9 – Product Targeting Ads
- Step 10 – How To Calculate Bid Adjustment for Top of Search
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- Bonus – Amazon ACoS Explained, Calculating Your Breakeven ACoS [WHAT YOU SHOULD REALLY MEASURE]
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