KPI

A Key Performance Indicator (KPI) is a quantifiable value that reflects progress toward a business objective. In the Amazon ecosystem, KPIs are used across all areas - from operations and marketing to sales and customer service - to evaluate performance and drive strategic decisions.

Common KPIs for Amazon sellers and vendors:

• Sales revenue
• Conversion rate (CVR)
• Buy Box percentage
• ACoS (Advertising Cost of Sale)
• Inventory Performance Index (IPI)
• Customer satisfaction score (CSAT)
• Late shipment rate / On-time delivery rate

Why KPIs matter:

• Provide clear benchmarks for success
• Help identify strengths and areas for improvement
• Guide data-driven decision making
• Influence account health, seller rankings, and eligibility for programs like Prime or deals

💡 Example: A 3P seller tracks ACoS as a core KPI to determine the efficiency of their Sponsored Products campaigns.

In short:
KPI is a measurable value that shows how effectively you're meeting your business goals - essential for tracking performance on Amazon and beyond.