Evaluating Amazon SEO performance can be challenging, especially for beginners or people who do not have a technical background. This article will focus on the main metrics to understand how your amazon SEO campaign is doing and what adjustments you need to make for it to be more effective.
How to Evaluate Amazon SEO Performance?
To start with, let’s identify the main components of a successful amazon SEO campaign. The 3 most important aspects are:
1) Rankings – obviously high rankings equal more visibility and consequently, higher sales
2) Traffic – this is closely related to #1 as if you rank for a given keyword, you will get more traffic from that keyword
3) Sales Conversion Rate – obviously it’s better to have more traffic but if the click-through rate is low, it might not be worth having so much traffic. That said, high conversions are essential as you will need to generate enough revenue to cover your ad spend and any other costs associated with your campaign.
If your conversion rates are low, you either need to try to improve your product or reduce your CPC (cost per click).
Advertising Costs & Fees Report: This report gives you detailed information about your ads and fees charged by Amazon. It also provides a comparison between Standard and Sponsored ads. Keep in mind that Sponsored Products Ads (formerly known as Headline Search Ads) have a higher CPC, so if your product isn’t converting that high with Standard ads, it might be a sign that you’re targeting the wrong keywords.
Daily Ad History Report: This report gives you an overview of your daily activity for each campaign. It’s a good idea to compare weekly ads vs. monthly ads and analyze the results at the end of each month.
Keywords Performance Report: It contains all data related to keywords, including impressions, clicks, CTR, etc. To get more insight into this report, you should use metrics from other reports such as Monthly Sales and Estimated Sales Per Keyword (from Keywords Performance Report). This will allow you to calculate average sales per click among different campaigns and ad groups and between standard and sponsored ads, CPC vs. CPM, etc.
Campaign Summary Report: This report contains the total sales generated by each campaign for a given month. It also contains the number of items sold per ASIN to calculate the conversion rate at a product level. You’ll also find a comparison with previous months or years to analyze trends.
Sales & Traffic Estimate Report: Another important metric to look at is Estimated Sales Volume by Month, which will tell you how much estimated revenue you need to cover your advertising costs. Note that this data is not available in all reports, but it’s usually available under Performance -> Marketing -> Advertising Reports -> Advertisers Estimates table within Seller Central account (login required).
The main issue with this data is that it’s calculated based on past sales and historical fees, thus not considering future changes in the market (e.g., fee increase) or new products on your listings.
Net Revenue Per Click & Net Sales Per Click: These two metrics are convenient if you want to calculate how much each click is worth for you automatically. You can then use them as a proxy of what you’re willing to pay for CPC or CPM campaigns, knowing that they’re highly dependent on your conversion rate and costs per item sold.
This metric also depends on your product pricing strategy, so it’s important to consider these when calculating ROI and customer lifetime value for different keywords and ads.
Amazon SEO is a complex process that requires time and patience. It’s important to keep in mind that Search Campaigns data is highly volatile, and it’s difficult to understand the impact of changes without analyzing performance over multiple months or years.
We hope this article answered your questions about Amazon SEO and how you can evaluate performance for different campaigns. If you have any other tips or suggestions, feel free to leave them in the comments section below.
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