Chasing the Amazon Best-Seller Badge: What Metrics Should You Focus On?
All merchants want to earn an Amazon #1 Best-Seller Badge next to their products. Within your particular category or subcategory, best-seller status represents all your success as a merchant and helps boost your credibility and future sales.
But to be a best-seller, you need more buyers. And people can’t buy if they don’t find your products. And so, you can’t earn the Amazon best-seller badge if your listings aren’t ranking highly.
So how can you improve your rankings?
Check out these key stats Amazon uses to rank your listings, and learn roughly how much each one really matters.
Metric #1: Product Sales or Conversions (Yes, We’re Saying It)
OK this one is a bit obvious, but also most important. Your high-level goals, benchmarks and metrics should always ultimately be about sales, i.e., conversions. And of course, earning an Amazon best seller ranking is directly related to selling the greatest number of products within your category over a duration of time that Amazon does not specify publicly.
More importantly, constantly looking for ways to improve your sales is great for you and the success of your Amazon business. It’s important to keep sales at the forefront of your mind because all the remaining metrics we’re going to look at ultimately seek to affect your sales and conversions.
Metric #2: Unit Session Percentage or Conversion Rate
This is another especially important one. Your daily number of sales is NOT the same as your unit session percentage, also known as your conversion rate. Your conversions rate is your number of sales (“Total Order Items”) divided by the number of times people visited your listing (“Sessions”). The percentage you get is your conversion rate. For example, if 10 consumers visited your listing and only 5 actually bought your product, you would have a conversion rate of 50%.
A good conversion rate can serve as a performance indicator for your listings. But what is a “good” conversion rate? Before you get too carried away with your current conversion rate, realize that it is ultimately relative to your products and profits.
Using our previous example, you can see how low sessions and sales can potentially yield a good conversion rate. But unless those 5 products you sold were unique and very expensive, you’re probably missing your target in daily profits even with that 50% conversion rate. Conversely, a low conversion rate but high views can still produce enough sales to meet your daily profit benchmark.
In the end, you need to analyze your sales, sessions and profits carefully. Data doesn’t lie, but it can be misinterpreted. Find a conversion rate that is relevant to you and the profit goals you have defined for your Amazon business.
With this mindset, you can start to look for ways to reasonably improve your conversion rate. If you have a lot of views but not a lot of sales, make sure your listings are relevant to your audience and look for ways to call visitors to take action. If you have the opposite problem, look for ways to increase your brand awareness to gain more listing views. Always look for ways to improve your ability to sell, and winning that Amazon best seller badge will come naturally.
Metric #3: Product Reviews and Seller Feedback
While positive reviews do play a small part in the ranking algorithm, negative product reviews and bad seller feedback can have a significant effect on customer engagement, sales and your ability to get best-seller status. Therefore, it’s important that you consistently monitor product reviews and seller feedback on Amazon.
If you have incurred negative reviews and bad seller feedback, our Amazon Seller Central Strategies resource lays out the steps you can take to resolve or mitigate the damage.
Metric #4: Order Defect Rate (ODR) of < 1%
As the name implies, this metric seeks to measure your customer’s satisfaction with your product. Calculating the ODR accounts for orders that have received negative feedback, an A-to-z Guarantee claim or a service credit card chargeback.
- Negative Feedback: One- and two-star ratings are considered as negative seller feedback. Amazon reviewing monitoring can help you stay on top of negative feedback and mitigate the effects.
- A-to-Z Guarantee Claims: Failure to proactively resolve order problems may result in a customer filing an A-to-Z Guarantee claim. Amazon guarantees the condition of the items from third-party sellers (you!) and its timely delivery. If you don’t work with displeased customers and they file an A-to-Z Guarantee claim, Amazon will reimburse your customer if you fail to give them the agreed upon refund. Naturally, Amazon looks unfavorably upon sellers who incur frequent A-to-Z Guarantee Claims from their customers.
- Service Credit Card Chargeback: This occurs when a buyer disputes a purchase charged to their credit card with their bank.
All three of these metrics will increase your ODR, so you will want to avoid them to keep your rate lower than Amazon’s required 1% and maintain customer satisfaction.
Metric #5: Pre-Fulfillment Cancellation Rate of < 2.5%
This metric is pretty simple to understand and calculate. Your pre-fulfillment cancellation rate is the number of seller-fulfilled orders that you cancel prior to ship-confirmation divided by the number of seller-fulfilled orders in the relevant time period. Amazon wants all sellers to keep pre-fulfillment cancellations lower than 2.5%.
Metric #6: Late Shipment Rate of < 4%
Make sure your products are delivered promptly. Amazon wants to make sure third-party sellers are taking good care of their customers and orders that are ship-confirmed late may lead to increased customer contacts and negatively impact the customer experience. Keep your late shipment rate below 4%, and you’ll be fine!
Metric #7: Inventory Availability
This metric is somewhat obvious but can be fairly important. The more units you move, the more important it is to your rankings that you keep them in stock. Amazon basically just wants to know that you can meet market demand. Plus, some sellers find that adding to their inventory can provide an instant ranking boost.
Track And Improve Your Metrics More Easily
Winning that Amazon best-seller badge can seem like a full-time job in and of itself, but AMZAlert can help. Our Amazon seller software tool can help you track your best-seller rankings and constantly know where you stand in the Amazon marketplace.
The other good news is that the Amazon best seller ranking and status is essentially just a by-product of running a successful business. Focus on your customers, products, and business, and the best-seller badge will be much easier to attain.
If you have questions about Amazon best seller badge metrics or our seller software tools, call or contact AMZAlert. We would be happy to talk with you and help continue to grow your Amazon business.