"Revenue is vanity, profit is sanity, but cash is king." Many Amazon sellers know their revenue, but not their real profitability. In this deep dive, we show you the KPIs that really count.

Why KPIs Are So Important

Amazon Seller Central shows you revenue and orders. But that says nothing about your actual profit. Without the right KPIs, you're flying blind:

Tier 1: The Basic KPIs

Net profit per unit

The most important number: what's left after ALL costs for each product sold?

Net profit = Selling price - COGS - Amazon Fee - FBA - PPC - Returns - Other costs

Goal: At least 15-20% of the selling price

Profit Margin (%)

The percentage share of profit in revenue.

Profit Margin = (Net profit / Selling price) × 100

Benchmark: 20%+ is good, 30%+ is excellent

Buy Box Rate

How often do you hold the Buy Box?

Buy Box Rate = (Impressions with Buy Box / Total impressions) × 100

Goal: 70%+ for competitive products

Tier 2: The Advanced KPIs

TACoS (Total ACoS)

The share of your total PPC costs in total revenue.

TACoS = (PPC spend / Total revenue) × 100

Benchmark: 5-10% for established products

TACoS vs ACoS: ACoS only shows the ROI of your PPC campaigns. TACoS shows how much of your total revenue you spend on advertising - including organic sales. A low TACoS means you generate a lot of organic sales.
Return Rate

Percentage of returned products.

Return Rate = (Returns / Orders) × 100

Goal: Under 3% (depending on category)

Inventory Turnover

How often do you sell through your inventory per year?

Inventory Turnover = Annual revenue / Average inventory

Benchmark: 4-8x per year depending on category

Tier 3: The Pro KPIs

ROI (Return on Investment)

How much return do you achieve on your invested capital?

ROI = (Net profit / Invested capital) × 100

Goal: 50%+ per year

Contribution Margin

What each product contributes to the contribution margin.

Contribution Margin = Selling price - Variable costs

Helps with prioritising your portfolio

The Ideal Dashboard

A good dashboard shows you at a glance:

Monitor daily:

  • • Revenue & orders
  • • Buy Box Rate
  • • PPC spend & ACoS
  • • Inventory of critical products

Analyse weekly:

  • • Net profit per product
  • • TACoS trend
  • • Return Rate
  • • Product performance rankings

Conclusion

The right KPIs give you control over your business:

  1. Basics: Net profit, Profit Margin, Buy Box Rate
  2. Advanced: TACoS, Return Rate, Inventory Turnover
  3. Pro: ROI, Contribution Margin

With the Sellercore Profit Dashboard you get all these KPIs automatically in one overview - without hours of tinkering in Excel.

All KPIs at a Glance

With Sellercore you track all the important metrics automatically.

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