Whether you're securing budget, justifying investments, or aligning internal teams, proving ROI from your Amazon operations is non-negotiable. But not all metrics carry equal weight. To convince stakeholders and drive smarter decision-making, you need to focus on the numbers that tie directly to performance and profitability.
Here’s a breakdown of the essential Amazon metrics you should be tracking—and why they matter.
ACoS is a core metric in any Amazon advertising report. It tells you how much you're spending on ads to generate sales, expressed as a percentage.
The lower your ACoS, the more efficient your ad spend. For example, if your ACoS is 20%, you're spending $0.20 on ads to earn $1.00 in sales. This helps stakeholders understand whether your campaigns are driving profitable revenue—or just burning through the budget.
Closely related to ACoS, ROAS looks at the return you get for every dollar spent on advertising. Where ACoS focuses on cost-efficiency, ROAS highlights revenue performance.
A higher ROAS means your campaigns are generating more revenue per dollar spent—something every stakeholder wants to see. It’s one of the clearest ways to demonstrate advertising effectiveness.
CAC measures the total cost of acquiring a new customer, including advertising, marketing, and sales expenses. This number is especially important for brands aiming to scale.
If your CAC keeps rising without a proportional increase in revenue or customer value, growth becomes unsustainable. Keeping this metric in check is key to proving that your acquisition strategy is both cost-effective and scalable.
While CAC looks at cost, CLV focuses on value. It estimates how much revenue a customer is expected to generate over the course of their relationship with your brand.
When CLV is significantly higher than CAC, you're in a healthy position. This metric is crucial for stakeholders who care about long-term profitability—not just short-term wins. A strong CLV can also help justify investments in retention strategies, upsells, and loyalty programs. However, if your CAC exceeds CLV, it's time to rethink your acquisition approach.
Revenue is often the first number stakeholders look for—but it doesn’t tell the whole story. Pairing it with profit margins gives a more accurate picture of business performance.
You could be pulling in millions in sales and still be operating with razor-thin margins. In other words, profit matters more than impressive revenue. Tracking both helps demonstrate not just growth, but also financial health and operational efficiency.
Your conversion rate shows the percentage of shoppers who visit your product listings and complete a purchase. It’s one of the most powerful indicators of listing quality and marketing alignment.
A high conversion rate means your content is compelling, your traffic is relevant, and your product meets customer expectations. If you’re driving plenty of traffic but struggling to close sales, this is the first metric to investigate.
Impressions track how often your ads are shown, while CTR measures how often viewers click on them. These top-of-funnel metrics help assess how visible and engaging your ads are.
A low CTR could indicate weak creative, poor targeting, or low brand awareness. While these numbers don’t tell the full story, they’re critical for diagnosing issues early—before they drag down sales performance.
Tracking the right metrics isn’t just about optimizing performance—it’s about earning trust and getting budget approvals. When you can speak confidently about ACoS, ROAS, CAC, and other key KPIs, you're demonstrating that your Amazon strategy is data-driven, results-oriented, and worth investing in.
Make these metrics a regular part of your reporting, and you'll always be equipped to prove your impact—even to the toughest stakeholders.
