Get to know your business
Flywheel is designed to help you understand and improve the health of your overall Amazon business. If you have never calculated your gross profit or analyzed your TACoS--don’t worry, you are not alone. While data on your total sales and ad sales can be easy to find, putting them together and then checking to see if you are profitable can be a tricky task. Even trickier can be doing this analysis at the SKU level...but more on that later!
First, let’s get a quick lay of the land
1. Est. gross profit. This number tells you how much your gross profit was over a given time period. Keep in mind, this number can be incomplete if you have not yet entered COGS (Cost of Goods Sold) for any of your products. Gross profit, in Flywheel, is calculated by subtracting your Amazon fees, FBA fees, ad spend and COGS from your total sales.
2. Total sales. This number tells you your total Amazon sales over a given time period.
3. Total ad spend. This number tells you the amount spent on Sponsored Products advertising over a given time period.
4. TACoS. Your Total Advertising Cost of Sale. This number tells you how you spend on advertising for each sale. It is calculated by dividing your total ad spend by your total sales.
Below the chart, you can see your opportunities and discover what Flywheel has been doing for you
5. Opportunities are your action items. Knowing your metrics is the first step, but being able to change them is just as (if not more) important. Setting up correctly by entering COGS and ACOS targets and then taking regular, weekly keyword actions is integral to your overall Amazon business success.
🏃♀️Teika Action: Click on the Cost of Goods sold tile to enter your first COGS. See how your estimated gross profit changed? The more COGS you enter, the richer the data!
6. Discover Flywheel. This section shows you what Flywheel has done on your behalf, as well as keep you posted on important news and updates from the Amazon ecosystem. The purple box, as your probably already guessed, is pretty important. It shows you the number of bid changes the algorithm has made for you over the past 30 days. While you and I might need sleep, the machine is always at work--learning from your data and making changes to improve performance.
🙋Tip from the experts: Our data scientists have done the math and the evidence is clear: there is not enough coffee in the world to keep you awake to make thousands of bid changes a month. Set your ACOS targets (hint: look at your Opportunities) and let the machine take over. I am sure you can find some other ways to spend your time!
Now that you have an idea for how your overall business is doing, it’s time to get down to individual products. The next section will walk you through the Product Metrics page and the information you can find there.