3 Essential Amazon Sales Metrics Defined: Sales, Revenue, & COGS
How to measure success in the Amazon ads dashboard and Amazon Sales Reports (Vendor Central, Sales Central, Amazon Advantage)
To measure the true impact of your Amazon Ads, it’s critical to understand how Amazon defines three key sales metrics: Sales, Revenue, and COGS (Cost of Goods Sold). These aren’t just numbers in a spreadsheet—they shape how you assess profitability, optimize ad spend, and ultimately grow your business.
Pro tip: Interpreting these metrics from Amazon’s perspective—not yours as a seller or vendor—is the key to avoiding costly misinterpretations.
1) Sales: What Amazon Received from the Customer
The Sales column in the Amazon Ads dashboard (see the red circle in the image below) reflects the discounted price paid by the customer. This is not the amount you receive as a vendor or seller.
So why does this matter?
Because ACOS (Ad Cost of Sale) and ROAS (Return on Ad Spend) are calculated using this discounted price, not your actual earnings. This can skew your perception of campaign performance.
⚠️ The Discount Trap
When ads drive higher demand, Amazon often increases discounts to boost conversion and increase their market share. While sales volume may rise, the consumer’s discounted price drops, causing:
Higher ACOS (bad),
Lower ROAS (also bad),
Even though your earnings haven’t changed.
This makes Sales a flawed standalone metric for ad evaluation. It’s useful for trend tracking, but misleading if used without context.
2) Revenue: Ordered vs. Shipped
The Sales Reports within Retail Analytics (across Vendor Central, Seller Central, and Amazon Advantage) provide two key revenue columns:
Ordered Revenue – Revenue based on the date of order placement
Shipped Revenue – Revenue based on the date the product shipped
Both reflect the consumer’s discounted price, just like the “Sales” metric in the Ads dashboard.
✅ Which One Should You Use?
While both metrics are similar, Ordered Revenue is preferred when analyzing ad impact because it ties directly to when your ads influenced a purchase.
3) COGS: Your True Amazon Revenue
This is where things get tricky.
Amazon provides a metric called Shipped COGS (Cost of Goods Sold). But beware: this is not your manufacturing cost—it’s Amazon’s internal cost to purchase your product.
What Shipped COGS Includes:
Your discounted wholesale price
Returns
Damage allowances
Amazon’s fees and co-op deductions
Early payment discounts
Adjustments from participating in promotions like coupons or extra consumer discounts
Excludes: Amazon Ads costs
Effectively, Shipped COGS = Your Revenue from Amazon.
To get a more accurate picture of ad profitability:
Adjusted ROAS = Shipped COGS / Ad Spend
Adjusted ACOS = Ad Spend / Shipped COGS
👀 Distributor Caveat
If a distributor manages your Amazon relationship, your true revenue is:
Shipped COGS – Distributor Fees/Costs
That number, not “Sales” or “Revenue,” is your real bottom line.
Summary: Know What You’re Looking At
| Metric | What It Is | Where It's Found | Represents |
|---|---|---|---|
| Sales | Discounted customer price | Amazon Ads Dashboard | Used in ACOS/ROAS calculations |
| Ordered Revenue | Price at time of order | Retail Analytics Sales Report | Tracks revenue at time of order |
| Shipped Revenue | Price at time of shipment | Retail Analytics Sales Report | Tracks revenue when order ships |
| Shipped COGS | Amazon’s cost to buy your product | Retail Analytics Sales Report | Best proxy for your actual revenue |
Conclusion: Make Smarter Decisions with the Right Metrics
Amazon Ads can be your most powerful and profitable ad platform—but only if you interpret its metrics correctly. Remember:
Sales ≠ Your Revenue
ROAS and ACOS can mislead
Shipped COGS is your best friend
Understanding these nuances allows you to manage spend, forecast profit, and optimize campaigns with confidence.
Need help managing your Amazon Ads, especially for books? We specialize in advertising for publishers—let’s talk.
