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Download 2024 Amazon Seller Benchmark Report:

How does your store measure up?
Use our free Amazon seller benchmark guide to track your Amazon store against industry-wide targets.
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Amazon Seller Benchmark Report

useful info to know

How to use our
Amazon Seller Benchmark Report

This report isn’t another snooze fest of random charts and numbers. We want you to use this 2024 Amazon Seller Benchmark Report to dive into the numbers that keep your business ticking—cash flow, liquidity, and managing risk. See how your Amazon business stacks up against the competition, both the multi-million dollar companies and the little guys, and gather data to identify which parts of your business require attention and which parts are thriving.

How we measure the data

elite

Elite

Represents the top 10 percentile within the report, highlighting those with the most efficient expense metrics.

high

High

Indicates above-average figures in expense categories, based on our expertise in e-commerce bookkeeping.

medium

Medium

The middle point of data, offering a general benchmark for comparison.

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How to calculate your IBO

IBO (Improve to Benchmark Opportunity) illustrates potential profit gains by aligning a single metric with its benchmark, assuming all other metrics remain constant. To estimate potential bottom-line improvements, subtract your figure from the benchmark and multiply by your sales. This calculation reveals the profit increase achievable by meeting the benchmark standard.

CALCULATION: BENCHMARK # - YOUR ACTUAL # X YOUR SALES

Key Amazon Benchmarks to Track

Sales returns & discounts

Sales returns and discounts reflect consumer satisfaction and pricing strategy effectiveness. For sellers experiencing higher return rates, a granular analysis by month may be needed to reveal underlying issues, be it consistent patterns or isolated incidents related to specific product problems.
Sales returns & discounts
Direct:Variable Costs

Direct/Variable Costs

Direct costs encompass the variable expenses associated with sales, such as COGS, Fulfillment Fees, and Marketplace Commissions. While these have remained static as a percentage of revenue, we've noted an upward trend in fulfillment fees by 1-2 percentage points annually.

Gross Margin Analysis

Gross Margin is the cornerstone of profitability, marking a critical measure of financial health for any e-commerce business. A slight shift in Gross Margin, as little as 2%, can disproportionately impact net profit by up to 20%.
Gross Margin Analysis
spend

Advertising Spend

Advertising is the most dynamic category for our clients, noticeably affected by seasonality and market strategy. It's considered a variable expense, though it doesn't neatly translate into per-unit costs on the P&L.

Operating Expenses

Operating expenses, with advertising spend at the forefront, are key drivers in gaining a competitive edge. However, this spending leaves a thin margin for other operational costs, which remain minimal in comparison.
Operating Expenses
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Amazon Seller Benchmark Report

FAQs About Amazon Benchmarks

What are Amazon Seller benchmarks?

Amazon-Seller benchmarks represent the average performance metrics gathered from over 100 Amazon sellers. These benchmarks cover various areas such as supply chain management, fulfillment, customer service, and technology infrastructure. They provide key indicators for evaluating a company’s success and ensuring optimal performance across its operations.

Amazon-Seller benchmarks are crucial because they provide a standard for evaluating the performance of your business against industry peers. By understanding these benchmarks, you can identify areas for improvement, optimize your operations, and make informed decisions to enhance your overall performance. They help ensure that your business is competitive, efficient, and aligned with best practices in the industry.

These benchmarks cover a wide range of areas, including but not limited to:

  • Advertising Costs
  • Fulfillment Costs
  • Cost of Goods Sold
  • Gross Margin
  • Net Profit

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