How Can Amazon Seller Analytics Help To Increase Margins and Drive Profits

When it comes to making money on Amazon, it’s no longer an art form but a science. Almost often, there is a clear, data-driven justification for why your sales are increasing or decreasing, and that’s where the need to find Amazon analysis software comes into play.

It’s simple for Amazon merchants to identify sales swings. Profits are either increasing or decreasing – you do not need a master’s degree in complex data analytics to see your profit margins. However, delving through Amazon seller central data and determining fundamental reasons is a very different beast.

Numerous factors contribute to the success or failure of a product. Is your listing keyword-optimized? Is your product receiving favorable feedback? Is it reasonably priced? Is your firm even measuring the appropriate Key Performance Indicators (KPI) and Metrics?

These questions could go on and on, but the bottom line is that if you don’t have Amazon seller analytics data to analyze your Amazon earnings and expenditures over time, you’re making critical strategic decisions in the dark. To increase revenues, successful Amazon sellers must use powerful amazon data analytics tools.

Why is it necessary to analyze Amazon sales?

Selling on Amazon entails various fees that can quickly cut into your profit margin. We are referring to referral fees, FBA fees, shipping charges, storage costs, advertising budgets, and product costs, to name a few.

Keeping an eye on your firm’s financial health entails collecting and evaluating monthly sales and spending to obtain a sense of your overall success and performance in specific areas of your organization. By manually inputting Seller Central reports into a spreadsheet or using an amazon analysis tool, this may be done manually or automatically.

Important Amazon Seller Analytics That Help You Increase Profits

Customized Amazon Sales Tracking Categories

Sellers may sort their items by ASIN and export data to Excel using Amazon Seller Central. It’s understandable that you may not have the time to develop complicated data analytics tables in Excel.

To optimize your data and generate clear, bottom-line-driven solutions, you must personalize beyond ASIN and SKU. You should categorize the data in your company dashboard according to what is most essential to you.

For the year 2020, Statista reported that Amazon had net revenues of around 386 billion US dollars. With category management, Amazon merchants may push their businesses to new heights.

Consider a vendor who sells a diverse selection of technological and clothes items. The firm has grown significantly in recent months, necessitating the addition of inventory and speedier turnaround times.

Sorting tech items efficiently by unit sales might provide information into which products should be considered for price increases. Identifying apparel products that are not selling well may indicate time to explore alternate brands or run a promotion.

Profit Comparisons on Amazon’s International Marketplace

Selling on Amazon is no longer confined to the domestic market. With 14 foreign Amazon marketplaces and rapid development into other emerging nations on Amazon’s agenda, there are opportunities to earn from selling your items internationally.

Even though it may be easier to have your items listed across worldwide marketplaces than a few years ago, joining new international marketplaces brings a wide range of issues for you to consider, from international shipping rates to language obstacles to different designs and consumer trends in other regions.

This is where well-developed data analytics software comes into play. Comparing your goods’ success in various markets is crucial for identifying trends and developing your brand as a global player.

Management of Expenses and Cost of Goods Sold on a Customizable Basis

As an Amazon seller, you may incur both anticipated and unanticipated charges. Certain costs fit cleanly and neatly onto an accounting balance sheet — whereas others may be one-off items that appear to fit everywhere. Analytics tools give you stable enough accounting software to manage predictable monthly spending yet adaptable enough to change circumstances.

Similarly, the Cost of Goods Sold (COGS) varies according to various variables. Shipping rates, volume discounts, packing expenses, and other charges add to the total cost of goods sold. 

Amazon’s analytical tools make it simple to add new categories shown at the unit pricing. A Cost Of Goods Sold (COGS) analysis will assist you in determining how all of the small expenditures sum up to affect your profitability.

Amazon Seller Analytics Reporting: Graphs and Charts Created Automatically

Even if you have all the necessary facts at your fingertips, it’s easy to overlook the most critical insights if they aren’t presented in a visually appealing manner. As the saying goes, a picture is worth a thousand words. 

When it comes to absorbing data from Amazon sellers, the adage could not be more accurate. The use of bar graphs, line charts, pie charts, and color-coding simplifies seeing the overall picture.

Sales Analytics provides you with a range of options for collecting and analyzing important Amazon financial KPIs.

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