There has been a time in all of our careers when we have been awash in logs and reports about our Amazon PPC campaigns. There is a perception that reporting is merely busy work without substance. Nothing could be further from the truth.
It’s a great chance to reflect on, evaluate, and compare strategies and actions, to confirm or disprove old ideas, and to synthesize and improve new ones. In addition, it also helps you collect data about what works for your store. Your Amazon report’s performance depends on how well you analyze it, or how well your PPC manager does. Analyzing and making decisions using data without meaningful analysis is just throwing numbers at a computer.
With the help of sourcing tools, a lot of information about your campaign can be collected. Sellers will be able to make better decisions when researching products on Amazon, and planning their future strategy if they have more data available. However, that assumption is based on sellers’ ability to interpret the data they have gathered.
Using Market Intelligence on Amazon to do product research begins by searching for the item you’re interested in. If you’re looking for a product, we recommend searching for its most relevant yet basic term. In this article, we will demonstrate how market data for Amazon is analyzed. Also, we’ll talk about the advantages of Amazon campaign reporting.
If you are new to Amazon and need help in analyzing data from Amazon reports, gathering data for product research or want amazon ppc management services do let us know at Urtasker.
What is Research & Analytics?
The goal of Research & Analytics is to gather, study, and understand consumers’ needs, wants, and perceptions of products and brands. It allows for the researcher to generate a report for the company’s management to take market decisions by aggregating and unifying customer sentiment at scale.
Interpreting and gathering analytic data on Amazon product research
Find out what customers are buying using this search term
Search terms and/or product markets should be researched to find out what sells. Consider a business that sells grilling gloves. There are a lot of gloves used in cooking, such as oven mitts, dishwashing gloves etc. You could lose a lot of money if you choose the wrong product category for your search term, which in this case is oven mitts. Your Amazon brand management will also be negatively impacted if you select the wrong products to list at your listings.
Nevertheless, you may wish to position the product differently to make it more relevant to the actual sale. Your selling price might need to change drastically in a market that is highly competitive.
If you analyze a market carefully, you may find listings that have unusually high or low sales or reviews. In general, these listings should be considered outliers when considering your market. Due to the fact that these listings don’t represent the market and what you would expect for your product, they shouldn’t be considered in your analysis. Market Intelligence detects outliers and highlights them in the Filtered View.
Categorization of products
Knowing the Amazon product category is crucial when estimating sales based on Amazon product research. According to the Best Seller Rank for a product in its respective top-level category (ex. Kitchen & Dining), sales are estimated. You may also be able to gain insight into how other sellers are positioning the product by understanding the category. Finally, you should familiarize yourself with the requirements relevant to certain categories of products. Sourcing a gated product without adequate preparation will leave you with headaches in the long run.
BSR (Amazon’s Best Sellers Rank)
The Amazon Best Sellers Rank measures how well a particular product has done compared to other products in a specific category. For example beauty products usually have BSR of 1. A BSR of 2 would indicate that the second bestseller is following closely behind. Purchasing decisions can be influenced by this data. A proprietary algorithm converts BSR into estimated sales using Amazon’s product research tools. To give a quick idea of how sales have changed for a particular product over the last 30 days, Market Intelligence displays a sparkline of BSR over the past 30 days.
Your sourcing decision is influenced by two important factors related to price:
- Understanding how much you can charge per unit can help you know how many products to sell each month if you have a revenue/profit goal in mind.
- By determining the price of your product, you can determine its margin per unit. Unit margin is the amount of profit per sale of a product.
Price can be used as a lever to increase or decrease traffic in some markets, as well as affect profitability in others. It is common for sellers to source higher quality goods, which forces them to charge higher prices than the average. It is definitely appropriate at certain times, places, and strategies. This, however, usually ends up being a mistake, and the product does not match sales expectations.
Suppose that there were 30 orders over the past 30 days, and you estimate the number of sales for the month. An ever-evolving custom sales estimation algorithm is derived from a significant amount of historical and current market data, and is continually updated and improved nightly. In order to estimate the number of orders for a product, we observe its Amazon Best Sellers Rank in a category at the top.
Using campaign reports to your advantage
Using Amazon Reporting to Reach Your Strategic Goals
Your Amazon reports will be more effective if you consider your strategic mission first. Increasing revenue is your goal, right? Do you want to increase awareness? If you want to achieve something specific, write it down before you start analyzing reports, and keep it in mind during the process. You will maintain a consistent perspective when you analyze metrics this way. Plus, it lets you know whether your goals are realistic or not.
Learning from Your Amazon Reports
Our number one principle at Amazon Advertising is that you should always strive to learn and improve. To stay on top of the ever-changing world of Amazon selling, you need to constantly update and expand your knowledge.
You can learn about your Amazon campaigns in the same way by using your reports. It is based on defining what’s good and bad, as well as deciding why some things have changed, that they help you understand.
Your future optimization decisions are based on how you understand past campaigns and trends. This is particularly important if your product experiences seasonality. A drop in conversions for three consecutive months can be confusing, but if the campaign is advertising snowblowers in June, that makes sense.
Analyzing trends can be done through reports. Try to find patterns over time and see if that trend can be continued or changes based on changes in input. Using a trend analysis in your campaigns also helps you understand how different metrics interact with one another.
Using Amazon Reporting to Improve Your Campaigns
Comparing your recent performance with historical patterns is an important step after reviewing your data with a goal-focused lens. It is also essential to hypothesize the reasons behind any changes in metrics. Once that is done, implement improvements to the campaign.
During your report reading time, you should begin forming a plan for how your campaign can reach its goal or get back on track. Your key metrics, both recent and historical, will give you insight into the impact of your previous actions. It is not worth repeating a strategy you tried previously and didn’t achieve the expected results.
Your Amazon PPC management strategy should be able to deliver the results you need. When you examine your next report, you can gauge how successful the overall strategy was.
Optimizing your Amazon PPC campaign must be based on data to ensure that your efforts deliver results. The only way to do that is to examine your campaign reports deeply and determine how strategy and KPI changes are related.
You should always keep your major objective in mind and insight before you do anything else. By doing this, you avoid falling into metric traps that do not have much relevance to your goal. Determine the trends and historical cycles that govern your campaign. A lot of people don’t know the history of their campaign, and that is why they are in trouble.
Make sure you know what’s moving in which direction, and look for trends. Search about the product you are going to sell thoroughly and interpret the relevant metrics mentioned in this article to be sure you are making the right decision. Then run your PPC campaigns to see how you perform and what could be done better.
If you need further guidance on analyzing PPC campaign data, you can ask for our expert guidance at Airtasker. We also provide Amazon brand management services for analyzing your reports and PPC management services to effectively run your advertising campaigns, which can generate a good amount of data to analyze later.