Review definitions for General, Advertising, and Product Metrics.
Flywheel: Teikametrics’ customer-facing ‘retail optimization’ platform, the product.
Max Ad Cost per Sale (MACS): An input within our bidding algorithm that dictates a user’s willingness to spend or their bidding strategy. Set at the campaign level, this enables bid automation.
Bid automation: A schedule of daily, sometimes hourly, bid changes made to ad groups and keywords within your campaigns
Total Sales: Your total Amazon sales (includes paid and organic) over a given time period.
Total Ad Sales: Total sales generated by Sponsored Product and Sponsored Brands advertising over a given time period.
- If you see total sales higher than ad sales on the product metrics page, this is a result of how Amazon attributes sales and spend to a SKU: Same Sku vs Other Sku Attribution
Total Ad Spend: Total amount spent on Sponsored Products and Sponsored Brands advertising over a given time period.
ACoS: 'Advertising Cost per Sale': the ratio of ad spend to targeted sales. Measures the effectiveness of your advertising.
- Calculation: (ad spend / ad sales)*100
Conversion: An action that's counted when someone interacts with your ad, defined here as a click resulting in a sale. *Multiple units could be purchased in a single conversion*
Conversion Rate: The percentage (%) of customers who clicked on an ad and resulted in a sale over a given time.
- Calculation: (Orders/Clicks) * 100
Impression: When an ad appears on page results
Click: Consumer was shown an ad and engaged. Paid click on an ad
Cost Per Click (CPC): The average amount of spend per click = (spend / clicks)
Click-Through Rate (CTR): The rate by which a click results from each impression = (Clicks/impressions)
Product Metrics Terms:
Cost of Goods Sold (COGS): Direct costs of producing the goods sold by a company, includes the cost of materials and labor directly used to create the good; excludes indirect expenses, such as distribution costs. Vary by seller and product, unique to each individual.
Benefits of COGS in Flywheel:
- Est. Gross Profit, Est. Gross Margins, Pre-Ad Gross Margins, MACS Calculator
TACoS: ‘Total Advertising Cost of Sale’ or Total ACoS measures the impact of your advertising on your overall business or the effectiveness of your ad spend in relation to your total sales. A lower TACoS indicates you're generating more sales organically
- Calculated as: (Ad Spend) / (Total Sales) *100
- View TACoS at the product and account level
Estimated Gross Profit*: This number tells you how much your gross profit was over a given time period. Appears on the Home page (account level) and Product Metrics (product level).
- Total Sales - (Amazon Selling Fees + FBA Fees + COGS + Ad Spend)
Est. Gross Margin*: Sales Revenue retained after factoring in associated costs. Percentage (%) of total sales that become profits.
- Selling Price - (COGS + Amazon Selling Fees + FBA Fees + Ad Spend)/Price *100
Pre-Ad Gross Margin: *Teika Term* Sales Revenue retained after factoring associated costs, excluding AD SPEND. Indicates how much money you can spend on advertising and still turn a profit on each sale. Helpful when setting MACS in the profit stage.
- Selling Price - (COGS + Amazon Selling Fees + FBA Fees)/Price *100
Est. Amazon Selling Fees: Fees associated with selling on Amazon: commission and closing fees, typically 15% of the sale.
Est. FBA Fees: Estimate of fees paid to Amazon associated with Amazon fulfilled products aka Prime; calculated automatically using Amazon’s Get my Fees report. Includes pick and pack, shipping and handling, customer support. Does not include monthly or long term storage fees.
- FBA = Fulfilled by Amazon
- FBM = Fulfilled by Merchant (no additional fees, no Prime status)
Associated Campaigns: Number of active campaigns a particular SKU is being advertised in.
- A high number of campaigns (over 5) indicates inefficient ad spend (most cases)
- A low number of campaigns (1 or less) indicates an opportunity to increase visibility
Units Sold: Total number of units sold per SKU over a given time.
*COGS are required