As Q1 draws to a close, brands need to take stock of their YTD Amazon performance and make strategic adjustments for the rest of the year.
But which metrics should be reviewed? And what action items should be prioritized over the following quarter? Finding the time to do a proper deep dive can be a real challenge.
Since Bobsled was established in 2015, our clients have absolutely adored our 90-day performance and strategy reports. We draw attention to the wins and losses from the prior quarter, and map out exactly how we intend to drive growth in the future.
Want to learn exactly what goes into our quarterly Amazon account audits? Read on!
Compare sales from the most recent quarter to the same quarter from the previous year. Even if your Amazon product catalog has not changed, you should still be seeing some type of YOY sales growth. This is because your products will have more tenure on the marketplace, and this generally translates to more customer reviews and better BSR (Best Seller Rank).
Take a look at the revenue and unit sales for your Top 5 ranking products. These are the ASINs doing most of the heavy lifting – it’s crucial they stay in stock.
Analyze total traffic and conversion rate. These data points can provide you with valuable insight about shopper intent at different times of the year.
Amazon’s B2B business is growing at a rapid rate. Don’t forget to factor your B2B performance into your quarterly review.
Appraise the results of any key promotions that ran during the prior quarter.
Review advertising performance from the prior 90 day period. Figure out what percentage of total sales is coming directly from advertising, and whether this ratio correlates with past quarters.
And don’t forget to analyze your 90-day Amazon DSP performance too. DSP advertising targets on and off-Amazon audiences that are typically higher up the decision-making funnel. This is why you need to compare DSP and PPC metrics separately.
A quarterly review is a good opportunity to analyze inventory management performance. Start with the Inventory Performance Index, which should be in the healthy green range.
Returns and refunds can really stunt your growth on Amazon. Identify how many units were impacted over the prior quarter.
Many brands on Amazon have to compete for the Buy Box on their product listings with other sellers. Failure to control the Buy Box will undermine your PPC performance and slow overall growth. Aim for at least 90% Buy Box ownership across your entire catalog.
You should also run an Inventory Age report to ascertain whether there is a risk of incurring any LTSFs (Long Term Storage Fees). Hopefully the result is 0 for all of your ASINs, but if not, consider removing, liquidating or destroying those units to limit LTSFs.
Bobsled recommends running Repeat Purchase Behavior, Market Basket Analysis and Item Comparison reports when conducting quarterly reviews.
Analyzing customer behavior can help brands make informed decisions when it comes to Promotions (e.g. BOGOs, Coupons) & Virtual Bundles. By putting the items that shoppers often buy together or contemplate buying in a BOGO or a Virtual Bundle, brands can increase their average order value.
Amazon also provides useful customer insights across demographics such as Gender, Age and Household Income. These data points can be extremely helpful for brands looking to reach more potential customers through DSP.
“Bobsled is a very professional, responsive asset to our Amazon strategy. We chose to work with Bobsled to help us grow our business on Amazon and to maneuver through the Amazon structure. They are responsive, professional, knowledgeable and contributed to our Amazon growth. They have assisted us with negotiating our Amazon terms, strategizing pricing, review response, brand presence and be more visible and outbidding our competition.”
— Nancy Nelson, TV Ears
You’ve successfully compiled all the relevant performance data from the last quarter. Congrats! The next step is to carefully map out the upcoming 90 days.
Quarterly reports are useful because they allow brands to be proactive about their Amazon presence. However, finding the time to take stock every 90 days is easier said than done.
If you could benefit from a team of experts reviewing your Amazon account get in touch below!