- Seller Labs
- On April 17, 2019
Amazon data without goals is like trying to sip water from a fire hose. When sellers define their business goals, they’ll be able to couple them with the right data.
We hear an awful lot about data—and Amazon data specifically—these days. Whether it be about data security, analytics, access to data or the lack thereof, data is a part of our everyday lives—and has been for some time.
As an Amazon seller, you’re more than likely concerned about data and how it can help you make the necessary sales you need to grow. This is something every e-commerce professional should be thinking about. Most sellers know that they need data in order to be competitive. But there’s more to data than you realize. Having access to data isn’t enough. In fact, it’s only one step in the journey of making data work for your business.
Be careful what you wish for because access to too much data can be paralyzing. Leaving you chasing down endless wild goose chases that don’t yield actionable results.
Not all ASINs Are the Same
The Pareto Principle—aka the 80/20 rule—states that approximately “80% of the effects come from 20% of the causes.” You’ve probably noticed that the majority of your sales come from a small minority of your ASINs. This is the Pareto Principle at work.
Of the 100% of data you have access to, it’s more than likely that you’ll only use 20% of it. You need the right data in order to make informed business decisions. This is why you should start with your business goals first before seeking data. If not, you’ll be going down endless rabbit holes and wild goose chases that will more than likely be unfruitful. Which brings me to my next point…
Setting Goals to Inform Your Amazon Data—Not the Other Way Around
Understanding your business goals prior to your pursuit of data will save you time and energy. Using data to inform your goals will make you chase the data and not the goal. So, what are your goals? To increase traffic, conversions, sales and profits? Great. Now go find the data that informs you on the direction your goals are heading.
As soon as you begin tracking your business goals, you’ll want to establish key signals that will direct you to what needs your attention. The easiest way to illustrate this is by comparing your business to the dashboard of a car. When everything is going well, the needles are pointing in the right direction and no lights are on. But when something goes wrong—say your gas is low or your tire is flat—a red warning light will illuminate to catch your attention. These lights won’t disappear until you’ve addressed the issue or until you’ve neglected the issue for so long that your car doesn’t work.
Your business is the same way. You can create a dashboard for your business with lights that illuminate when something needs your attention. But you first have to determine what those lights are before you can illuminate them.
This is where aligning your business goals with the right data is crucial. When you know what you’re measuring, you’ll be able to connect the right dataset to inform a specific goal. So when something is wrong, a warning light will illuminate.
We all want a four-hour work week, but that won’t happen until you can run your business in the most efficient way possible. Connecting your goals to the right data will get you there.
The topic of data—and Amazon data—is seemingly endless. But this is also true of the possibilities that data can give you. By defining your business goals, you’ll then be able to narrow down your specific data needs—and not the other way around.
One of the easiest ways to visualize your Amazon data in an actionable, digestible format is with Seller Labs Pro. You can connect your Amazon seller account to make the tool your new home base. What’s more, you’ll be able to view your profits and losses on a macro and micro level. This will give you a holistic view of your business’ overall health and growth.
Don’t take my word for it: Try Seller Labs Pro free for 30 days and start to make sense of your business’ data.