How Does Amazon Sales Data Analysis Grow Sales?
In today’s hyper-digital world, data analytics is at the core of any business that’s hoping to achieve success. When it comes to eCommerce especially, data analytics help sellers to better optimise their Amazon sales strategy by gaining valuable insights.
If you’re dead serious about learning how to increase Amazon sales, then you should understand how data analytics work and how they can help you achieve more in less time.
Amazon Data Analytics – What is it?
Amazon data analytics refers to the process of analysing consumer buying and preference patterns, sales and many other data points, which helps to make well-informed and data-driven decisions. By analysing specific metrics, you can drastically increase Amazon sales and also improve your overall Amazon sales strategy.
Data analytics are very useful to sellers because they are the key to increasing revenue, helping you analyse different metrics, including sales, keywords, conversions rates, consumer buying behaviour and more.
How do data analytics help increase Amazon sales?
Data analytics play a key role in helping sellers increase Amazon sales and devise a better strategy to improve sales. When you have access to specific metrics, you can better understand the market trends that can potentially drive higher revenue, and consumer behaviour, which will help you tailor your offerings accordingly.
Just some of the benefits of using data analytics for fine-tuning your Amazon sales strategy include:
- Better-informed business decisions
- Higher conversion rate
- Much better optimisation
- Improved sales insights
Let’s expand a little on the above benefits;
Amazon data analytics are without a doubt the safest way to make business decisions. Even if you want to make any changes in your business or selling structure in future, you can do so with full confidence, knowing that each decision is backed by substantial and concrete data.
Amazon data analytics also reveal potential flaws or shortcomings in your business model or the way you are generally doing business. For instance, you can clearly see where you’re losing out on revenue, why you’re losing it, how to cut down your losses as much as possible, and what Amazon sales strategy to devise to deal with such losses.
Your ACoS may sometimes be very high when we talk about PPC campaigns on Amazon. But through data analytics, you can cut down your ad spend and maximise ROI.
Another important element involved in Amazon data analytics is that it provides sales insights – these can be used to quickly determine which products are selling the most, which ones are selling the least, slow-moving items and what your sales may potentially look like in the future, based on the current findings. This can make inventory management a little easier, and you will almost always know which item should be in stock at any given time.
Another key advantage of Amazon data analytics is that it offers insights into conversion rates. You can easily determine how many buyers clicked on your ads and how many actually completed the buyer journey – by looking at what the data and numbers indicate. Having this data at your fingertips means you can most definitely optimise your product listings and ad campaigns in order to boost conversion rate.
Product research, ad campaigns and keywords usage are undeniably critical facets of Amazon selling. Data analytics enhance each one of these to provide better results at the end of the day.
Here are a few key benefits of using data analytics to increase amazon sales:
- Undeniably, the safest way to make well-informed business decisions; even when you’re planning to bring future changes into your business, you’ll have the confidence of knowing that each decision is backed by concrete, substantial data.
- Reveal flaws in your current business model or the way you do business each day; you can clearly identify areas where you’re not making a profit, why you’re not making it and how to cut losses. As a result, you can come up with a much better Amazon sales strategy.
- Reduce ad spend; with Amazon PPC marketing campaigns, you may have noticed how your ACoS is often quite high. But with data analysis done for you by a professional Amazon marketing agency, you can easily reduce your ad spend and maximise ROI as well.
- Insights to help you sell more; another very important benefit of using Amazon data analysis is that it gives you critical sales insights into which one of your products are selling the most, which ones are selling the least, and also the ones which are selling very slowly. Plus, you get additional insights into what your future sales may look like. As a result of knowing these metrics, you’ll always be on top of your inventory management, knowing exactly how much of a specific item to keep in stock at any given time.
- Insights into how your conversion rate is doing; data analytics allow you to understand how many users click on your ads on a daily basis and how many actually converted to a customer, simply by looking at certain numbers and data. This data can be used to further fine-tune your ad campaigns and optimise listings.
- Product research, keyword usage and Amazon ad campaigns; with these three being highly important facets of your Amazon sales strategy, data analysis can only help enhance each one to give you the best results possible.
How to read Amazon Business Reports – Sales & Traffic Data
So many people dont realise that some key metrics such as “unit session percentage”, “session rates” and ” units ordered” literally dictate your Amazon seller performance. “unit session percentage” is the Amazon seller metric name for the products “conversion rate” we can accurately monitor this and see how well your listing is fairing against other products in your range and also, and perhaps more importantly the competition. A poor conversion rate likely means improvements need to be made in your product listing.
How Do I Do Data Analysis In Amazon Vendor Central
Vendor central has a slightly more fragmented way of helping you made decisions about sales and performance, remember; just because Amazon are buying your product. means they are selling it, its crucial for you to look at both your Inventory health report, your sales diagnostic report and use your spreadsheet formula to “vlookup” the two.
If you have Amazon brand analytics in your amazon vendor reporting account you can look at the conversion rate and glance view (called “sessions” in seller central) to make simillar decisions on how to improve your product listings.
Trying to increase Amazon sales means you’ll encounter many challenges along the way which can truly test your knowledge, patience, skills and perseverance as an eCommerce seller.
With the aid of Amazon sales strategy analytics tools, you can overcome most of those challenges to become a top seller.
Trying to increase Amazon sales means you’ll encounter many challenges along the way which can truly test your knowledge, patience, skills and perseverance as an eCommerce seller. With the aid of Amazon sales strategy analytics tools, you can overcome most of those challenges to become a top seller.
With the above said, it’s also important to choose the right Amazon analytics tools to get the job done. Chris and his team of Amazon marketing specialists have years of experience helping businesses gain the necessary insight to sell more on Amazon. With Chris’s expertise and knowhow, you can easily join the ranks of the top sellers on Amazon.