Running a successful Amazon FBA business in 2025 is no longer just about finding a trending product and listing it on the marketplace. Competition is fierce, customer expectations are higher than ever, and Amazon’s algorithms reward sellers who actively monitor and optimize their business performance. To stay ahead, you need to track and improve the right Amazon KPIs (Key Performance Indicators).

These KPIs give you measurable insights into your business health, advertising performance, sales efficiency, and customer satisfaction. Without tracking them, you’re essentially running your business blind. With them, you’ll know exactly where to make improvements, when to scale, and how to stay compliant with Amazon’s strict standards.

In this complete guide, we’ll dive into the 8 most important Amazon KPIs for FBA sellers in 2025, explain why each metric matters, how to measure it, and actionable strategies to optimize your results.

1. Conversion Rate (Unit Session Percentage)

What It Means

Conversion rate measures how many visitors to your product listing actually buy your product. On Amazon, this is tracked as Unit Session Percentage. For example, if 100 shoppers visit your listing and 15 purchase, your conversion rate is 15%.

Why It Matters

Conversion rate is one of the strongest signals to Amazon’s algorithm that your product is relevant and desirable. A high conversion rate improves your organic ranking, lowers advertising costs, and boosts profitability.

How to Find It

• Go to Seller Central > Reports > Business Reports

• Select Detail Page Sales and Traffic by Child Item

• Look at the column Unit Session Percentage

Benchmarks

• Amazon average: 10–15%

• Well-optimized listings: 20% or higher

How to Improve Conversion Rate

• Use high-quality images and infographics (show lifestyle use cases).

• Optimize titles, bullet points, and descriptions with targeted keywords.

• Price competitively, but highlight unique value to avoid a race to the bottom.

• Gather positive reviews (through Vine, review automation, or excellent service).

• Use A+ Content and video to build trust.

2. Keyword Ranking

What It Means

Keyword ranking measures where your product appears in Amazon’s search results when customers type in specific search queries. Ranking high for your target keywords means more visibility and more sales.

Why It Matters

Over 70% of Amazon sales come from searches on the first page, and most shoppers never click to page two. If your product isn’t ranking high for relevant keywords, your sales will stagnate.

How to Track Keyword Rankings

• Use Amazon tools like Brand Analytics (for registered brands).

• Third-party tools like Helium 10 or Jungle Scout Rank Tracker.

Strategies to Improve Keyword Rankings

• Target long-tail keywords with lower competition.

• Optimize your listing with backend search terms and semantic variations.

• Run PPC campaigns on new keywords to boost relevance and visibility.

• Drive external traffic (social ads, influencer campaigns) to accelerate rankings.

3. Inventory Performance Index (IPI)

What It Means

The IPI score is Amazon’s way of measuring how well you manage your FBA inventory. It evaluates how efficiently you balance supply and demand.

Why It Matters

A low IPI score can limit your storage capacity in Amazon’s fulfillment centers, increase storage fees, and even lead to stranded inventory.

IPI Score Factors

• Excess Inventory: Too much unsold stock.

• Sell-Through Rate: Speed at which inventory sells.

• In-Stock Rate: Avoiding stockouts.

• Stranded Inventory: Listings without active offers.

Benchmarks

• Minimum required IPI: 400

• Good performance: 500–800

How to Improve IPI

• Use Amazon’s Restock Inventory tool for recommendations.

• Run promotions or coupons to move slow sellers.

• Remove stranded inventory immediately.

• Balance stock levels with forecasted demand.

4. TACoS (Total Advertising Cost of Sales)

What It Means

TACoS = Ad Spend ÷ Total Revenue (including organic + ad-driven sales).
It shows how your advertising spend impacts your overall sales.

Why It Matters

TACoS provides a holistic view of your business growth. A decreasing TACoS indicates that organic sales are growing, while ad spend is driving long-term visibility.

Benchmarks

• Healthy TACoS: 10–15% for most sellers.

• High TACoS (>20%): Too dependent on ads.

How to Lower TACoS

• Optimize listings to convert more organic traffic.

• Invest in keywords that build organic ranking over time.

• Cut wasteful ad spend on low-performing keywords.

• Use Sponsored Brand Ads to increase brand recall.

5. RoAS (Return on Advertising Spend)

What It Means

RoAS = Total Ad Revenue ÷ Ad Spend.
If you spend $100 and generate $400 in sales, your RoAS is 4.

Why It Matters

RoAS tells you whether your ads are profitable. It’s the opposite of ACoS, but many sellers find it easier to interpret.

Benchmarks

• Break-even RoAS: 2–3 (depends on margins).

• Target RoAS: 4+ for profitability.

How to Improve RoAS

• Use negative keywords to block irrelevant clicks.

• Optimize campaigns weekly — adjust bids, pause underperformers.

• Focus on high-converting keywords.

• Segment campaigns by product and match type for better control.

6. ACoS (Advertising Cost of Sales)

What It Means

ACoS = Ad Spend ÷ Ad Revenue.
If you spend $50 to generate $200 in ad sales, your ACoS is 25%.

Why It Matters

ACoS shows how efficiently your ads are converting. While TACoS shows business-wide impact, ACoS focuses solely on ad-driven sales.

Benchmarks

• Target ACoS: Depends on your profit margin. If your margin is 30%, aim for ACoS under 30%.

How to Lower ACoS

• Refine keyword targeting (focus on high-converting terms).

• Use exact match campaigns for precise targeting.

• Improve listing quality to convert more clicks into purchases.

• Adjust bids based on placement reports.

7. Amazon Fees

What It Means

Amazon charges several types of fees:

• Referral Fees: Percentage of each sale (8–15%).

• FBA Fees: Picking, packing, shipping costs.

• Storage Fees: Monthly and long-term storage charges.

• Other Fees: Returns processing, labeling, oversized item fees.

Why It Matters

Fees eat into your profit margins. If you don’t monitor them, you may think you’re profitable when you’re actually losing money.

How to Track Fees

• Use Amazon Fee Preview reports in Seller Central.

• Track profits with tools like Sellerboard or Helium 10 Profits.

How to Reduce Fees

• Optimize product size/weight to fit into lower FBA tiers.

• Use FBA inventory removals before long-term fees hit.

• Bundle products strategically to reduce per-unit fees.

• Regularly audit Amazon to catch overcharged fees.

8. Account Health

What It Means

Amazon Account Health is Amazon’s way of ensuring sellers meet performance standards and customer satisfaction metrics.

Account Health Metrics

• Order Defect Rate (ODR): <1% required.

• Late Shipment Rate (FBM sellers): <4%.

• Pre-Fulfillment Cancel Rate: <2.5%.

• Policy Violations: Must be addressed quickly.

Why It Matters

Poor account health can lead to listing suppression or even account suspension. For FBA sellers, it ensures Amazon continues trusting you with fulfillment.

How to Maintain Account Health

• Respond to customer messages within 24 hours.

• Avoid late shipments and always provide tracking (FBM).

• Monitor policy violation alerts in Seller Central.

• Be proactive in appealing issues before they escalate.

Why These 8 Amazon KPIs Matter

Each KPI gives you a different lens into your Amazon FBA business:

• Conversion Rate & Keyword Ranking → Sales efficiency & visibility

• IPI → Inventory health

• TACoS, RoAS, ACoS → Ad performance & profitability

• Fees → Cost management

• Account Health → Long-term business sustainability

By tracking these together, you’ll know not just whether your business is profitable today, but also whether it’s sustainable tomorrow.

Final Thoughts

Selling on Amazon FBA in 2025 is more competitive than ever, but data is your greatest weapon. By tracking and optimizing these 8 essential KPIs, you’ll gain the clarity needed to scale, protect your account, and maximize profits.

Don’t just rely on intuition — let the numbers guide your strategy. Whether it’s improving your conversion rate, lowering TACoS, or staying compliant with account health standards, the sellers who monitor their KPIs closely are the ones who thrive.

👉 Start by setting up regular KPI tracking in Seller Central and third-party tools. Review them weekly. Make adjustments monthly. And always keep your long-term growth goals in mind.

With the right focus on these metrics, you’ll not only survive Amazon’s competitive landscape but also build a profitable, scalable FBA business.