CAGR

Compound Annual Growth Rate (CAGR) is widely used in finance and business to measure how quickly something - such as sales, profit, or market value - has grown over a specific period, typically expressed as a percentage.

The formula is:

 CAGR = [(Ending Value / Beginning Value)^(1 / Number of Years)] - 1 

On Amazon, CAGR can help:

• Track long-term growth of a product, brand, or category
• Compare sales trends year-over-year
• Evaluate market potential for new products
• Present performance data in investor reports or brand pitches

💡 Example:
If your private label brand grew from $100,000 to $250,000 in 3 years, your CAGR would be approximately 32%, showing steady and strong growth.

In short: CAGR helps Amazon sellers and brands measure consistent growth over time - it smooths out fluctuations and gives a clear picture of long-term performance.