Brand Valuation
Key Performance Indicators on the Brand Valuation page
The Key Performance Indicator (KPI) section provides quick visual indication of brand performance across multiple KPIs, by means of a health bar that goes from red to green. The current input values for each KPI are shown in the top right of each KPI card.
For low-scoring KPIs, recommendations are included in the expandable area of the respective KPI card.
The following overview provides more information on the calculation basis and benchmarks for each KPI.
| KPI Category | KPI Name | What is the KPI based on? | How do the top performing brands score for each KPI? |
|---|---|---|---|
Products | Product Complexity | Based on the number of products that make up 60% of EBITDA (Trailing 12 Months) | Brands with 1 or 2 products making up 60% of EBITDA are low in complexity and score high for this KPI. |
Products | Best Seller Rank | Based on the current Best Seller Ranking across subcategories | Brands with products in the top 10 of their respective BSR subcategories are top performers and therefore score high for the Best Seller Rank KPI |
Profitability | Profit Margin | Based on the profit margin (EBITDA / Net Sales) across the brand (Trailing 12 Months) | Brands with a profit margin higher than 25% are top performers and therefore score high |
Profitability | EBITDA Growth Rate Year on Year (YoY) | Based on the brand EBITDA growth rate of the last year (Trailing 12 Months) vs the year before | Brands with an YoY EBITDA Growth rate higher than 50% are top performers and therefore score high |
Profitability | EBITDA Growth Rate Month on Month (MoM) | Based on the brand EBITDA growth rate of the last completed month, compared to the same month in the previous year. | Brands with an MoM EBIDTA Growth rate higher than 50% are top performers and therefore score high |
Customer Satisfaction | Return Rate | Based on the % of products returned in the last year | Brands with a return rate of less than 5% score high |
Customer Satisfaction | Repeat Customer Rate | Based on the % of purchases that came from repeat buyers in the last 18 months | Brands with a repeat customer rate higher than 20% score high |
Customer Satisfaction | Rating | Based on the rating across products (all time) | Brands with an average product rating higher than 4.3 score high |
Customer Satisfaction | Review Volume | Based on the number of reviews per product (all time) | Brands with products that on average have more than a 10,000 reviews score high |
Customer Satisfaction | Review Quality | Based on the negative review rate (all time), where negative ratings are 1,2,3 star ratings. | Brands with a negative review rate of less than 10% score high |
Account Health | Order Defect Rate | Based on the order defect rate across the Seller Central Account (last 2 months) | Seller accounts with an order defect rate of less than 0.25% score high |
Account Health | Policy Violations | Based on the number of policy violations across the Seller Central Account (last 6 months) | Seller accounts with 0 policy violations score high |
Advertising | TACOS | Based on the Total Average Cost of Advertising (Ad Cost / Amazon Sales) in the last completed month | Brands with a TACOS ratio of 8% or less score high |
Shopify | Shopify Revenue | Based on the Shopify Revenue (Total Sales) growth of the last year (TTM) vs the year before | Brands with revenue growth of over 30% score high |
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