Understanding and effectively managing key performance indicators (KPIs) is essential for Amazon sellers aiming to optimize their business operations and profitability. We offer a comprehensive suite of over 30 KPIs, providing sellers with valuable insights into various aspects of their business. This post breaks down essential Amazon metrics, categorized into Sales & Profit, Advertising, Traffic and Inventory metrics.

Amazon Metrics Overview:

Amazon sellers deal with a variety of metrics, but not all data points are equally valuable. My Real Profit breaks down key metrics into distinct categories:

Sales & Profit Metrics – Measures revenue, profitability, and order volume.
Advertising Metrics – Tracks ad efficiency and return on investment.
Traffic Metrics – Evaluates the number of visitors and conversion rates.
Inventory Metrics – Helps sellers optimize stock levels.
LTV & Subscription Metrics – Assesses long-term customer value and recurring revenue.
Market Share (SQP) Metrics – Analyzes how a seller’s performance compares to competitors.

To find a specific metric in My Real Profit’s analytics dashboard, use your browser’s search function:

Windows: Ctrl + F
Mac: Cmd + F

Sales & Profit metrics

Sales / Total Sales

Definition: The overall revenue earned from customers, covering both the item price and shipping costs for non-FBA orders. For FBA orders, only the item price is included.

Total Sales account for orders that are either Pending or Shipped.

If an order moves from Pending to Canceled, My Real Profit software will automatically remove it from the Total Sales calculation.

Calculation: Sum of the item_price row.

AOV (Average Order Value)

Definition: The average dollar amount spent per order.

Calculation: AOV = Total Sales / Orders

Units / Units Sold

Definition: Total number of units sold within a selected time period. The Units Sold metric uses the same logic as described in Total Sales.

Calculation: Sum of the quantity row.

Orders

Definition: The total count of orders (based on order IDs) placed within a chosen time frame. Each order may contain multiple units.

Calculation: Sum of unique amazon order ids.

Cost of Goods (COGS)

Definition: The total cost of inventory sold within the selected time period. This value must be manually entered by the user on the Products and COGS page.

Calculation: COGS value x Units

CLTV (Customer Lifetime Value)

Definition: Total revenue generated per unique customer.

Calculation: CLTV = Total Sales / Unique Customers

Fulfillment Fees

Definition: The cost of shipping and delivering products, represented by the total fulfillment fees for the selected time period.

For orders in Pending status, the exact FBA fulfillment fee is not immediately available, as Amazon may delay this information by 1 to 7 days after the order is placed.

My Real Profit relies on Amazon’s estimated FBA fee (updated daily) until the actual cost is provided. Once Amazon posts the final FBA fee, My Real Profit automatically replaces the estimate with the actual cost. All FBA fees are assigned based on the purchase date to ensure they align with the order’s placement date.

Referral Fees

Definition: A commission based on revenue that is paid to Amazon for using its marketplace. This fee is calculated as a percentage, which differs by category. The calculation method for referral fees is similar to that of fulfillment fees. Once an order is placed, the estimated fee is updated with the actual cost.

Calculation:

For FBA: Amazon commission % x (item price – discounts) For FBM: Amazon commission % x (item price + shipping price – discounts)

Advertising / PPC Cost

Definition: The cost associated with using Amazon’s pay-per-click (PPC) service to place your products in Sponsored placements. This cost should align with the data in your Amazon Campaign Manager, although there may be a slight 1-2% discrepancy due to variations in API data.

My Real Profit utilizes Advertised Product reports for Sponsored Products and Sponsored Display ads to provide a detailed breakdown of spending by ASIN.

For Sponsored Brands ads, the system evenly distributes the spend across all advertised ASINs (for example, if three ASINs are advertised, the total cost will be divided by three and allocated accordingly).

Advertising Sales / PPC Sales

Definition: The total revenue generated from pay-per-click (PPC) advertisements. This metric is calculated using the same methodology as the advertising costs previously described.

Refunds

Definition: When a customer requests a refund on the Amazon platform, several transactions occur that impact the seller:

Refunds: This includes the sales price returned to the customer, reimbursement of the referral fee to the seller, and a refund processing fee (20% of the referral fee, up to a maximum of $5).

Refund Administration Fee: If your refund rate exceeds the category average, Amazon may charge an administration fee.

Sellable Returns COGS: This represents the value of inventory returned to Fulfillment by Amazon (FBA) fulfillment centers in sellable condition, effectively increasing your profit since the product can be resold.

Other Fees

Definition: This category includes overall account-level expenses that cannot be attributed to individual products.

Storage Fee

Definition: The Amazon FBA (Fulfillment by Amazon) storage fee is the cost sellers pay for storing their inventory in Amazon’s fulfillment centers. As part of the FBA program, these fees are calculated based on the volume of stored products, measured in cubic feet.

Since there is a delay before these fees become visible on Amazon, My Real Profit provides an estimated cost. Amazon storage fees typically have a 1.5-month delay.

Example: Storage fees for October are charged between November 8th and 15th. My Real Profit’s estimation method helps sellers monitor these costs in real time.

The estimation is based on tracking daily FBA inventory levels and product dimensions, allowing for an accurate calculation of the space occupied in Amazon’s fulfillment centers and a prediction of the storage fee.

Discounts

Definition: The total amount spent on discounts during a specified time period. Discount costs follow the same calculation method as Total Sales and include various types of promotions, such as coupons, brand-tailored promotions, and Subscribe & Save offers.

The coupon redemption fee is a fixed charge per redeemed discount per order and differs by marketplace.

Calculation:

Discounts: Sum of “item promotion discount” but exclude coupons.

Discounts: Sum of “item promotion discount” but only include coupons.

Coupon Redemption Fee: Unique orders with coupons used x coupon redemption cost.

Total Marketing

Definition: The overall amount spent on promoting and marketing products on Amazon. This includes advertising costs, discounts, lightning deals, and coupon redemption fees.

Calculation: Total Marketing = Advertising Spend + Discounts + Lightning Deals + Coupon Redemption Fees

Total Marketing %

Definition: Percentage of revenue spent on marketing activities.

Calculation: Total Marketing % = Total Marketing Spend / Total Sales

Adjustments

Definition: Modifications or payments Amazon applies to your seller account for various reasons. These adjustments typically involve changes to your account balance due to inventory or order discrepancies. Reimbursements are issued by Amazon to compensate for losses or errors it is accountable for.

Manual Expenses

Definition: Costs that the user can manually input in the “Manual Expenses” tab.

Average Price

Definition: The average price of products sold during the selected time period, factoring in all discounts. It only includes units sold with a price greater than 0.

Excludes: Vine sales and replacements.

Calculation: Average Price = (Total Sales – Discounts) / Units Sold

Refund Rate (in Units)

Definition: Percentage of units refunded compared to the units sold.

Calculation: Refund Rate = Refunded Units / Units Sold

Refund Rate (in $)

Definition: Percentage of refund cost compared to the total sales.

Calculation: Refund Rate = Refunds / Total Sales

ROI (Return on Investment)

Definition: The profit generated in relation to inventory costs. This metric is valuable because the only upfront cost is for inventory, with other expenses occurring after the sale. ROI helps assess how much profit is made from the investment in inventory.

Calculation: ROI = Profit / Cost of Goods Sold (COGS)

Profit

Definition: The net income generated from sales, after accounting for all fees. This metric is displayed on the Profit dashboard.

Calculation:

Profit = Total Sales – (Cost of Goods + FBA Fee + Referral Fee + Refunds + Advertising + Discounts + Storage Fee + Other Fees + Adjustments + Manual Expenses)
Profit Margin = (Profit / Total Sales) × 100
Profit PPU (Profit Per Unit) = Profit / Units Sold

Profit from Sales

Definition: The net income generated from sales, excluding specific fees that are not directly related to the sales. This metric is useful for evaluating the performance of marketing activities during a particular period.

This profit metric is available only in advanced reports:

Day-to-day
Profit & Loss
Advertising Analytics

Exclusions: Adjustments, reimbursements, removal fees, subscription fees, long-term storage fees.

Calculation:

Profit from Sales = Total Sales – (Cost of Goods + FBA Fee + Referral Fee + Refunds + Total Marketing)
Profit from Sales Margin = Profit from Sales / Total Sales
Profit from Sales PPU (Profit Per Unit) = Profit / Units Sold

Advertising Metrics

Organic Sales and Organic %

Definition: Percentage of revenue generated from organic search (non-advertising).

Calculation:

Organic Sales = Total Sales – PPC Sales

Organic % = (Organic Sales / Total Sales) × 100

ACoS / PPC ACoS

Definition: ACoS (Advertising Cost of Sales) measures the percentage of your ad spend in relation to the revenue generated from ads. A lower ACoS signifies better advertising performance.

Calculation: PPC ACOS = (PPC Spend / PPC Sales) × 100

TACoS / PPC TACoS

Definition: TACoS (Total Advertising Cost of Sales) measures your ad spend as a percentage of total revenue, offering insight into the long-term effect of advertising on overall sales.

Calculation: TACOS = (PPC Spend / Total Sales) × 100

PPC CPA (Cost Per Action)

Definition: CPA (Cost Per Action) calculates the average cost to achieve one sale through PPC advertising. It reflects how much you paid Amazon to generate a single order from sponsored placements.

Calculation: PPC CPA = PPC Spend / PPC Orders

PPC Conversion Rate (PPC CVR)

Definition: This metric measures the percentage of clicks that lead to a sale. A higher conversion rate suggests better ad targeting or greater product appeal.

Calculation: PPC Conversion Rate = PPC Orders / PPC Clicks

Cost Per Click (CPC)

Definition: CPC represents the average cost each time someone clicks on your PPC ad. It is determined by your keyword bid and bid placement modifier.

Calculation: CPC = PPC Spend / PPC Clicks

Click-Through Rate (CTR)

Definition: CTR measures the percentage of impressions that result in clicks. A higher CTR typically indicates more engaging or relevant ad content.

Calculation: CTR = (Clicks / Impressions) × 100

Net ACOS

Definition: A custom metric by My Real Profit that takes into account discounts applied to advertised sales. Unlike Amazon, which uses gross sales (excluding discounts), Net ACOS adjusts for situations where a coupon and advertising are both used for the same ASIN, causing you to pay twice for one order. Discounts are estimated based on your Organic/PPC sales ratio.

Example: If 50% of your total sales are from ads, it is assumed that 50% of your discount orders were made through advertising.

Calculation: Net ACOS = PPC Spend / (PPC Sales – Discounts)

Return on Ad Spend (ROAS)

Definition: ROAS measures the revenue generated for every dollar spent on advertising. It reflects the effectiveness of your ad spend, with a higher ROAS indicating better performance.

Calculation: ROAS = PPC Sales / PPC Spend

Break-Even ACOS / BE ACOS

Definition: This metric indicates the ACOS level at which you break even, meaning you neither make a profit nor incur a loss. BE ACOS helps determine your maximum ACOS threshold and assess whether your advertising is profitable or not:

If your ACOS is above Break-Even, you incur a loss from advertising.
If your ACOS is below Break-Even, you make a profit from advertising.
If your ACOS is equal to Break-Even, you make no profit from ads.

Calculation: Break-Even ACOS = Profit Margin (excluding advertising costs)

Break-Even ROAS / BE ROAS

Definition: This metric shows the ROAS level at which you break even, meaning you neither make a profit nor incur a loss. BE ROAS helps determine your maximum ROAS threshold and assess whether your advertising is generating profit or loss:

If your ROAS is above Break-Even, you make a profit from advertising.
If your ROAS is below Break-Even, you incur a loss from advertising.
If your ROAS is equal to Break-Even, you make no profit from ads.

Calculation: Break-Even ROAS = Total Sales / Total Costs

Traffic Metrics

Organic Traffic

Definition: The number of sessions generated from unpaid sources, such as organic search results within Amazon. Organic traffic reflects how well your product is performing in terms of visibility without relying on advertising.

Calculation: Organic Traffic = Sessions – Paid Traffic

Paid Traffic (PPC Clicks)

Definition: The number of sessions generated from paid advertising campaigns, including Sponsored Products, Sponsored Brands, and Sponsored Display ads.

Conversion Rate

Definition: The percentage of sessions that result in a purchase (order). This metric indicates how effectively your product listing turns visitors into buyers.

Calculation: Conversion Rate = (Orders / Sessions) × 100

Unit Session %

Definition: The percentage of sessions that result in units being sold. This metric measures how effectively your sessions convert into product sales.

Calculation: Unit Session % = (Units Sold / Sessions) × 100

Organic Unit Session %

Definition: The percentage of sessions from organic traffic that result in units being sold. This metric measures the effectiveness of unpaid traffic in generating sales.

Calculation: Organic Unit Session % = (Organic Units Sold / Organic Traffic) × 100

PPC Unit Session %

Definition: The percentage of sessions from paid traffic that result in units being sold. This metric reflects how efficiently your paid campaigns convert traffic into sales.

Calculation: PPC Unit Session % = (PPC Units Sold / PPC Clicks) × 100

Buy Box %

Definition: The percentage of time your product appears in the Buy Box, the section where customers can add items to their cart.

Inventory Metrics

Sellable Stock: The total FBA inventory available for sale.

Reserved Stock: Inventory held by Amazon for pending orders or shipment processing (such as FC processing or FC transfer).

Pending Inbound: Inventory that is currently en route to Amazon fulfillment centers.

Unsellable Stock: Inventory that has been returned or damaged and is not sellable.

Total FBA Stock: The sum of Sellable Stock, Reserved Stock, and Pending Inbound.

Inventory Value: Total FBA Stock × Cost of Goods Sold (COGS).

Last 30-Day Sales: The total number of units sold for a specific SKU in the last 30 days.

Daily Units: The average number of units sold per day, calculated by dividing the Last 30-Day Sales by 30.

Days Coverage: The estimated number of days your current stock will last, based on the average daily units sold in the last 30 days.

Conclusion

Understanding your Amazon metrics doesn’t have to be complicated. Tracking the right numbers can help you see what’s working, where you’re losing money, and how to improve your business.

My Real Profit makes this easy by automating analytics, so you can spend less time on calculations and more time growing your business. With the help of tools such as My Real Profit, sellers can monitor, analyze, and optimize business performance to maintain a competitive edge on Amazon

Try My Real Profit for free and start making the most out of your Amazon data today!