Top KPIs to Track for Evaluating Your Amazon Marketing Service Performance

You're at the proper place if you're exploring the world of Amazon Marketing Service (AMS) to increase brand awareness.

At Ginesys, we are aware that Amazon advertising has the potential to revolutionize the industry, but only if the appropriate metrics are being monitored to gauge its effectiveness.

With millions of sellers competing for the Buy Box and customer attention, understanding your AMS performance is key to staying ahead. 

Let’s explore the top Key Performance Indicators (KPIs) you should focus on to ensure your campaigns are driving sales, optimizing spend, and growing your business. 

We’ll break these down into categories, share actionable insights, and highlight how to use these metrics to refine your strategy.

Why KPIs Matter for Amazon Marketing Service

Running an Amazon Marketing Service campaign without tracking KPIs is like driving without a map—you might move forward, but you won’t know if you’re heading in the right direction. 

KPIs give you a clear picture of your campaign’s health, from ad spend efficiency to customer engagement. 

They help you identify what’s working, spot areas for improvement, and make data-driven decisions to maximize your return on investment (ROI). For Amazon sellers, where competition is fierce and algorithms are ever-changing, these metrics are your compass for success.

Start with Advertising Efficiency Metrics

The first area to focus on is how efficiently your ad budget is being used. Amazon Marketing Service offers tools like Sponsored Ads and Display Ads, but without monitoring efficiency, you could be burning cash without results. Let’s look at the key metrics here.

Advertising Cost of Sale (ACoS) measures how much you’re spending on ads relative to the sales they generate. It’s calculated as (Ad Spend / Attributed Sales) x 100. For example, if you spend ₹5,000 on ads and generate ₹25,000 in sales, your ACoS is 20%. 

A lower ACoS means your ads are cost-effective, but benchmarks vary by category—fashion might aim for 25%, while electronics could handle 30%. 

Check this in the Amazon Advertising Console under Campaign Manager to see which campaigns need tweaking.

Return on Ad Spend (ROAS) flips the perspective, showing revenue per ad dollar spent: ROAS = Attributed Sales / Ad Spend. Using the same example, a ₹5,000 spend yielding ₹25,000 in sales gives a ROAS of 5, meaning ₹5 earned per ₹1 spent. 

A higher ROAS indicates better ad performance, and benchmarks often range from 3 to 5 for Amazon campaigns. Track this alongside ACoS to balance efficiency and revenue growth.

Measure Engagement with Click and Conversion Metrics

Engagement metrics tell you how well your ads are capturing customer interest and driving action. These are critical for understanding the effectiveness of your Amazon Marketing Service campaigns beyond just spend.

Click-Through Rate (CTR) shows the percentage of people who click your ad after seeing it: CTR = (Clicks / Impressions) x 100. If your ad gets 1,000 impressions and 30 clicks, your CTR is 3%. 

A good CTR on Amazon typically ranges from 0.5% to 3%, depending on your product category. Low CTR? Your ad copy, images, or keywords might need a refresh. You can find this in the Search Term Report in Amazon Seller Central.

Conversion Rate is the percentage of clicks that turn into purchases: Conversion Rate = (Orders / Clicks) x 100. If 30 clicks lead to 3 sales, your conversion rate is 10%. Amazon’s average conversion rate hovers around 10%, but top performers can hit 12-15%. 

A low rate might signal issues with your product listing—think pricing, images, or reviews. Dive into the “Detail Page Sales and Traffic” report in Seller Central to monitor this.

• Quick Tip: If your CTR is high but conversion is low, optimize your product page with better images or clearer descriptions.

• Pro Move: Test different keywords in your campaigns to improve both CTR and conversion over time.

Focus on Sales and Revenue Impact

Ultimately, your Amazon Marketing Service campaigns should drive sales and revenue. These metrics help you see the bigger picture of your advertising efforts.

Total Sales Revenue tracks the income generated from your ads over a specific period. This includes both direct sales from ads and organic sales influenced by increased visibility. 

In Seller Central’s Business Reports, you can see this under “Sales Dashboard.” A steady increase in revenue signals that your campaigns are working, but don’t stop there—segment your data by product to identify top performers.

Average Order Value (AOV) measures the average spend per order: AOV = Total Revenue / Number of Orders. If your campaign generates ₹50,000 from 200 orders, your AOV is ₹250. 

Higher AOV means customers are spending more per purchase, which you can boost through strategies like bundling or upselling. Monitor this to see if your ads are attracting high-value buyers.

Don’t Ignore Customer Satisfaction Metrics

Your Amazon Marketing Service campaigns don’t operate in a vacuum—customer satisfaction directly impacts your ad performance and long-term success. Amazon prioritizes sellers who deliver great experiences, so keep an eye on these metrics.

Order Defect Rate (ODR) reflects the percentage of orders with issues like negative feedback, returns, or late shipments. Amazon requires an ODR below 1%, as a higher rate can hurt your ad visibility and Buy Box chances. 

Check this in Seller Central under “Performance Metrics.” If your ODR is creeping up, address issues like product quality or shipping delays immediately.

Customer Feedback and Ratings are also tied to your ad performance. Positive reviews boost your product’s appeal, while negative feedback can tank conversions. Regularly monitor feedback in Seller Central’s “Voice of the Customer” dashboard. 

Reach out to unhappy customers to resolve issues and encourage satisfied buyers to leave reviews—this can indirectly improve your AMS results.

Assess Inventory and Account Health

Your Amazon Marketing Service campaigns won’t perform well if your inventory or account health is shaky. These metrics ensure your ads aren’t wasted on products that can’t be sold.

Inventory Performance Index (IPI) measures how well you manage stock—high IPI scores (above 500) improve your storage limits and ad visibility. 

Low IPI, caused by overstocking or stockouts, can limit your ability to run effective campaigns. Track this in Seller Central under “Inventory Planning” and adjust your stock levels to maintain a healthy score.

Sales Velocity tracks how quickly your products are selling: Sales Velocity = Units Sold / Time Period. For example, selling 300 units in 30 days gives a velocity of 10 units per day. 

High velocity indicates strong demand, which can amplify your AMS campaigns by improving organic ranking. Use this data to decide which products to push harder with ads.

How to Track and Optimize These KPIs

Tracking these KPIs is only half the battle—using them to optimize your Amazon Marketing Service campaigns is where the magic happens. Start by setting up a routine to review your metrics weekly in Seller Central and the Amazon Advertising Console. 

Use tools like Seller Central’s Business Reports for sales and customer metrics, and the Campaign Manager for ad performance.

• Set Benchmarks: Compare your ACoS, ROAS, and conversion rates to industry averages (e.g., 25-40% for ACoS, 10% for conversion).

• Test and Adjust: If your CTR is low, experiment with new ad copy or keywords. If conversion rates dip, optimize your product listings.

• Automate Where Possible: Use tools like Ad Badger for bid automation to lower ACoS and improve ROAS.

Common Pitfalls to Avoid

Many sellers make mistakes that can skew their Amazon Marketing Service performance. Don’t focus solely on ad metrics—ignoring ODR or IPI can hurt your overall account health and ad effectiveness. 

Avoid tracking too many KPIs at once; prioritize the ones that align with your goals, like increasing sales or improving ad efficiency. 

Finally, don’t set and forget your campaigns—regularly monitor and tweak them based on your KPI data to stay competitive.

A Tool to Support Your Amazon Journey

At Ginesys, we know how crucial seamless integration with marketplaces like Amazon can be. Ginesys One offers a cloud-based OMS with features like Ginesys OMS (Browntape) for marketplace integrations, real-time inventory sync, and smart analytics to track your sales and performance.

With over 50 integrations, it’s a perfect companion for managing your Amazon campaigns efficiently. 

Check out more at https://www.ginesys.in/.