The 4 most important metrics for scaling your Amazon Brand 2025

Many Amazon retailers dream of turning a few products into a real company. Scaling increases sales and profits, but also complexity. Only those who keep an eye on the right metrics can grow and be successful in the long term. In this blog post, you will find out which four metrics should accompany you on your path to a profitable Amazon brand, how to measure them and how to optimize them in a targeted manner.

https://www.youtube.com/watch?v=eF0lABFy4YU

Why metrics are essential for successful Amazon scaling

It is no longer enough to simply sell a good product. If you want to achieve more, you have to think like an entrepreneur. This means not only increasing sales, but also constantly scrutinizing and monitoring the processes in the background. The more products you have and the stronger your growth, the more important an overview of the key figures becomes.

These four metrics determine whether your growth is profitable and sustainable:

• TACoS: How expensive is your advertising in relation to the entire account?
• Conversion rate: How efficiently is traffic converted into sales?
• Share of organic sales: How much are you still dependent on PPC?
• Cost of Goods Sold (COGS): How much profit is left over after purchasing and logistics?

Don't rely on your gut feeling. Business success comes from numbers and their interpretation.

If you are looking for support in scaling and optimizing these metrics, Stacvalley is a strong partner for Amazon brand growth.

TACoS: The truth about your advertising costs

What is TACoS?

TACoS stands for Total Advertising Cost of Sales. In contrast to ACoS (which only shows the paid advertising costs in relation to PPC sales), TACoS shows the share of your total advertising costs in total Amazon sales.

Important points:

• TACoS: (advertising costs/turnover of all sales) * 100
• ACoS: (advertising costs/revenue from advertising) * 100
• With TACoS you know how advertising really affects your overall profitability.

Why is TACoS so important for scaling?

If you have growing sales, launch new products or invest heavily in PPC, profitability can quickly suffer. Profit comes under pressure precisely because each new product often requires more advertising.

If you only look at the ACoS, you often overlook how advertising costs affect your overall profit. TACoS, on the other hand, helps you to recognize an imbalance early on.

You should always analyze your TACoS on a monthly basis. The better your organic ranking, the lower your TACoS will be because more sales will be generated without advertising.

Which values are useful for TACoS?

A good guideline is 5 to 15 percent. However, the optimum value depends heavily on your niche and your margin.

With more than 15 percent, you are often already too high, unless you are in extremely competitive markets such as supplements or electronics.

Regular tracking, e.g. with tools such as Sellerboard, is a must. Enter the values, observe trends and compare products with each other.

Practical implementation

• Maintain your TACoS per month
• Don't forget to calculate it account-wide
• Compare different products within your portfolio
• Check whether increasing advertising expenditure is accompanied by organic growth
• Remain critical: a TACoS that is too high is a red alert

Only with this view will your company grow healthily and profitably.

Conversion rate - your turbo for sales and profits

What does conversion rate mean on Amazon?

The conversion describes how many visitors to your offer page actually buy. The higher the conversion rate, the easier it is to scale - because every click brings more value.

An improvement of just one percentage point can have a huge impact on your profits. This is especially true if you have a high spend on PPC campaigns.

Factors that influence your conversion rate

You should have the following adjusting screws on your screen:

• Product images and videos: First-class photos and moving images are a must. They distinguish top offers from the midfield. [Stacvalley specializes in precisely this optimization.]
• Product quality and reviews: Bad reviews scare buyers away. Good stars become a ticket to more purchases.
• Pricing: Don't become a price dumper, but also find the sweet spot where your product is perceived and still converts.
• Click-through rate (CTR): If nobody clicks on your offer, nobody can buy. The CTR shows how often your product is actually visited after a search.

Conversion rate - How good is good enough?

Are you selling a simple pair of garden shears for 15 euros? 20 % conversion is realistic here.
For expensive products, such as a home gym for 500 euros, even 2 % is very good.

There is no "perfect" value. Goal: Improve your conversion rate continuously, no matter where you currently stand.

Tips for a strong conversion

• Optimize photos, videos and A+ content regularly
• Actively collect customer reviews
• Adjust your price depending on the market situation
• Always adapt the language, wording and description to the questions of your target group
• Experiment with titles, bullet points and offer prices

By constantly working on your conversion rate, your sales will grow almost automatically.

Organic sales - your sustainable growth

Why organic sales are more important than PPC

PPC campaigns bring speed but cost margins. Organic sales, on the other hand, ensure sustainable profit.

Your goal: At least 60 to 65 percent of all sales should come from organic ranking. At the beginning of the product launch, you are often more dependent on PPC. In the medium term, however, your ranking must become so good that the majority of your orders come from search.

Advantages of a high proportion of organic sales

• Better margin: no advertising costs, but full profit
• More visibility: A good organic ranking continuously brings traffic without effort
• Long-term stability: Your brand stands for itself and grows even without major advertising pressure

Risks of too much PPC dependency

If you consistently generate over 50% of your sales through PPC, it will be difficult to remain profitable. Especially in saturated niches, margins and profits decline when advertising costs become too high.

The less dependent you are on the advertising budget, the more stable and sustainable your company's growth will be.

Monitoring and tips for more organic sales

• Keep statistics on your organic sales share
• Check rankings of the most important keywords regularly
• Optimize your listing for search engines and visitors
• Plan your stock levels so that you never go out of stock - this is the only way to keep your ranking stable

Permanent monitoring is a must. Tools or a good Excel list can help with this.

Example of sales distribution:

COGS - How to manage your costs and profits

What is behind "Cost of Goods Sold"?

COGS (Cost of Goods Sold) includes all costs incurred for the purchase, production and shipping of your products. The lower your COGS, the more profit you have left. Rising purchase prices or expensive logistics eat into your profit.

Common errors with COGS

Too many retailers rarely pay attention to the creeping increase in their COGS. Suppliers make small price mark-ups, transportation costs increase or packaging becomes more expensive - all of which can go unnoticed.

How do you optimize your COGS?

• Negotiate regularly with suppliers
• Analyze new production processes, packaging sizes or materials
• Get an overview of the freight costs and book as far in advance as possible
• Optimize logistics and warehousing

Guideline: Ideally, your COGS should be 30% of the sales price. Anything significantly higher (50% or more) jeopardizes the scaling of your company.

Tips for checking your COGS

• Enter all costs regularly and monitor increases
• Check every month to see if you can discover new savings potential
• Use key figure dashboards or calculation tools specifically for Amazon sellers

With good COGS control, you are ideally positioned for growth and larger orders.

Bonus: Inventory Turnover Rate - Your key to lean warehouse management

What is the stock turnover rate?

The inventory turnover rate indicates how often you sell and replenish your entire stock within a certain period of time (usually 2-3 months). It is crucial so that you do not tie up capital unnecessarily or have too many storage costs.

Challenges in everyday life

Delivery delays, political events or logistics problems can quickly lead to bottlenecks today. It can quickly happen that goods do not arrive, get stuck at customs or a ship is delayed.

Goal: Balance between availability and storage costs

The linchpin is the right planning:

• Avoid out-of-stock: No product = no sales = loss of ranking
• Avoid overstocking: too much stock = unnecessary costs and tied-up capital

Especially with monthly sales of 100,000 euros or more, you should keep a very close eye on how long your stock will last and how quickly you need to reorder new goods. Empirical values help to improve forecasts.

Practical tips for warehouse management

1. Check stock and sales figures on a monthly basis
2. Adjust your order quantities to seasonal and market developments
3. Create a buffer for unforeseen delivery delays
4. Use tools or simple Excel spreadsheets for your planning
5. Observe the turnover rate and optimize if necessary

Too little stock slows down your growth. Too much stock destroys your margin.

Implementation: How to keep an eye on all metrics

Create a dashboard or a clear Excel table for all four metrics. This is the only way to recognize early on where action is needed.

Recommendations for your controlling:

• Set fixed dates (e.g. monthly) for review and recalculation
• Use tools for automated reporting (e.g. Sellerboard)
• Have your data checked regularly by professionals or an agency
• Work on interpretation: learn to interpret key figures correctly and derive actions
• Document each adjustment and observe the effects

Good routines for data maintenance increase the security of your business planning.

Do you want support and analysis from an experienced partner? Use the initial consultation with Stacvalley to take your Amazon brand to a new level.

Conclusion

If you want to remain successful on Amazon, you have to think beyond product quality and marketing. Only those who measure, analyze and constantly optimize the right metrics can grow sustainably and set themselves apart from the competition. Keep an eye on TACoS, conversion rate, organic sales share and COGS and constantly optimize them. With a clear focus, good routines and tools, you can create the perfect foundation for profit and growth.

Stay informed, stay focused - and take your Amazon brand to the top together with professionals like Stacvalley!