Partnering with an Amazon marketing agency is a big investment in your brand’s growth. But how do you know if the partnership is delivering as it should? Tracking the right key performance indicators (KPIs) gives you a clear window into your progress and ensures your money is well spent.
Why Amazon Marketing KPIs Matter
The right Amazon marketing agency brings expertise, experience, and tools that can propel your products to the top of search results and boost your bottom line. Yet, for your partnership to work, you need to agree on measurable goals. KPIs act as your progress markers—they show what’s working, what needs adjusting, and help you hold your agency accountable.
Focusing on solid, actionable KPIs protects your investment and keeps your business moving forward.
KPI #1: Advertising Cost of Sale (ACoS)
Advertising on Amazon is a powerful way to grow, but costs can spiral if you’re not careful. The first metric any Amazon marketing agency should monitor is your Advertising Cost of Sale, or ACoS.
- ACoS formula: (Ad Spend ÷ Ad Revenue) x 100
- A low ACoS means more efficient ad campaigns and better return on ad investment.
Monitoring this KPI over time helps you see whether your agency is achieving cost-effective growth or wasting budget. If your ACoS rises, it may signal untargeted campaigns or weak ad optimization. A strong agency will work to drive this number down, balancing cost efficiency with sales volume.
KPI #2: Total Sales and Sales Velocity
Ultimately, success with an Amazon marketing agency is measured in sales. But there’s more to the story than just total revenue. Sales velocity—the rate at which you sell products—matters, too.
- Total sales reflect your agency’s impact on your overall revenue.
- Sales velocity (number of units sold per day/week) shows how fast products move off the shelves.
Why track both? High sales numbers are great, but if your velocity spikes and then drops, your gains may not last. A consistent upward trend in both metrics reveals a sustainable growth curve—a key sign your agency’s strategies are truly working.
Monitoring these KPIs allows you and your agency to spot winning products quickly, identify seasonal trends, and reallocate resources toward the best performers.
KPI #3: Organic Ranking for Targeted Keywords
One of the greatest benefits an Amazon marketing agency offers is improved product visibility. Organic ranking—your product’s position in Amazon search results without paid ads—matters for long-term profitability.
- The closer your product is to page one for high-intent keywords, the more likely shoppers are to buy.
- Agencies track movement for priority search terms, using tools to monitor where you stand daily or weekly.
Improving organic rank reduces your reliance on paid ads and steadily increases ROI. Monitor this KPI to evaluate your agency’s SEO strategies: effective copy optimization, backend keyword targeting, A+ Content implementation, and regular listing updates.
If your organic rankings climb for chosen keywords, your agency is likely making smart, lasting improvements to your listings.
KPI #4: Conversion Rate (CVR)
Getting shoppers to your product page is only half the battle—convincing them to buy is even more crucial. Conversion rate measures the percentage of visitors who go from viewing to purchasing your product.
- High conversion rates mean your product detail pages are compelling and relevant.
- Low rates could signal poor images, weak copy, or uncompetitive pricing.
A skilled Amazon marketing agency will continually optimize your product listings—improving imagery, content, reviews, and pricing strategies. They’ll run A/B tests and use customer feedback to refine every element.
Regularly reviewing your conversion rate tells you whether these efforts are succeeding. A rising conversion rate signals that your agency’s optimizations are resonating with real Amazon shoppers.
KPI #5: Return on Ad Spend (RoAS)
Return on Ad Spend goes a step beyond ACoS to provide a clearer look at advertising effectiveness. It measures the total revenue generated for every dollar spent on Amazon ads.
- RoAS formula: (Ad Revenue ÷ Ad Spend)
- A higher RoAS indicates greater ad efficiency and profitability.
Your Amazon marketing agency should track RoAS for every campaign and adjust strategies to maximize returns. Low-performing campaigns can drain your budget, while high RoAS campaigns propel your growth.
Be sure your agency reports on RoAS by product, by keyword, and by ad type so you can see precisely what’s driving the best results.
Working Smart: Setting KPI Benchmarks With Your Agency
When you first engage with an Amazon marketing agency, it’s vital to establish clear benchmarks for each KPI. Don’t settle for vague promises—instead, agree on realistic targets and timelines.
- Review historical data to set baselines for ACoS, sales, conversion, and ranking.
- Define what success looks like for your brand and product category.
- Select a reporting cadence (weekly, biweekly, monthly) so you’re always informed.
Clarity is key. When both parties know which metrics matter most, your agency can tailor their strategies, and you’ll feel confident in your progress.
What to Do If KPIs Aren’t Moving
Even top agencies hit roadblocks: rising competition, shifting algorithms, or supply chain hiccups can affect performance. If KPIs stagnate or slip the wrong way:
- Open a dialogue with your Amazon marketing agency. Ask what they’re seeing and what pivots they recommend.
- Collaborate on a testing roadmap: new campaigns, keyword adjustments, listing refreshes, or price experiments can breathe life into slow metrics.
- Ensure your agency is proactive, not reactive. Your ideal partner will come prepared with solutions, not excuses.
Continuous improvement is the name of the game with Amazon. A hands-on approach—and regular, honest KPI reviews—keep your brand agile and ready to adapt.
Beyond the Basics: Additional Metrics Worth Watching
For some brands, five core KPIs might not be enough. As you evolve with your Amazon marketing agency, consider tracking other valuable metrics:
- Buy Box percentage: Monitor how often your offer wins the Buy Box, which directly impacts conversions.
- Customer review volume and rating: Rising positive feedback boosts long-term credibility and ranking.
- Inventory performance index: Ensures you stay stocked and avoid lost sales due to out-of-stock issues.
These supporting indicators can help you fine-tune your partnership and spot opportunities others might miss.
Building a Successful Agency Relationship
Working with an Amazon marketing agency should feel like adding an expert team to your business—not an expense to justify. Transparency and mutual accountability are essential.
- Demand regular KPI reporting that’s clear, actionable, and aligned to your goals.
- Celebrate wins as a team and address challenges together.
- Use KPIs as a shared foundation for innovation, ensuring you’re always moving forward.
Choosing the right agency is step one. Managing KPIs effectively turns that choice into market-leading success.
Conclusion
Tracking the right KPIs with your Amazon marketing agency ensures your partnership delivers real, measurable value. By focusing on these five key performance indicators, you’ll have a clear path toward sustained growth and market leadership. Start with these metrics, set bold but achievable benchmarks, and watch your Amazon business thrive.
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