Amazon Sales Monitoring & Demand Planning

Maximizing profitability for Amazon sellers with intelligent inventory management, ad optimization, and sales forecasting.

Data analysis dashboard on a laptop screen

Key Metrics Monitored

  • Sales Velocity (Units/Day)
  • Inventory Turnover Ratio
  • Stockout Rate / Days of Cover
  • Advertising Cost of Sales (ACoS)
  • Total Advertising Cost of Sales (TACoS)
  • Customer Return Rate
  • Demand Forecast Accuracy (MAPE/WAPE)
  • Buy Box Percentage

Technologies Utilized

  • Amazon Selling Partner API
  • Amazon Advertising API
  • Azure Fabric / Data Lakehouse
  • Microsoft Power BI
  • Python (Pandas, Scikit-learn, Prophet)
  • Inventory Management Software APIs
  • Cloud Functions (e.g., Azure Functions)

The Challenge

Selling on Amazon presents unique challenges related to inventory management, advertising optimization, and fierce competition. Sellers often grapple with:

  • Inventory Stockouts & Overstocking: Difficulty predicting demand leads to lost sales due to stockouts or tied-up capital in excess inventory.
  • Inefficient Ad Spend: Wasting money on unprofitable keywords or campaigns due to lack of clear performance data and attribution.
  • Manual Forecasting: Relying on spreadsheets or guesswork for demand planning, leading to inaccuracies.
  • Data Silos: Sales data, advertising data, and inventory data often exist in separate systems, preventing a holistic view.
  • Dynamic Marketplace: Rapid changes in competitor pricing, ad costs, and sales rank require constant monitoring.

Our Approach

Phoenix Dataworks delivers an integrated analytics platform for Amazon sellers:

  1. Automated Data Extraction: Utilize Amazon SP-API and Advertising API to automatically pull sales, inventory, FBA shipments, advertising performance, and settlement reports.
  2. Centralized Data Hub: Consolidate all Amazon data streams within an Azure Fabric Lakehouse, cleaning and structuring it for analysis.
  3. Performance Dashboards: Build comprehensive Power BI dashboards visualizing sales trends, inventory health (days of cover, stockout risk), advertising effectiveness (ACoS, TACoS), profitability per SKU, and demand forecasts.
  4. Demand Forecasting Models: Implement time-series forecasting models (e.g., Prophet, ARIMA) considering seasonality, promotions, and advertising impact to predict future sales.
  5. Inventory Optimization Logic: Develop automated alerts or reports suggesting optimal reorder points and quantities based on forecasts and lead times.
  6. Ad Spend Analysis: Analyze keyword performance, campaign ROI, and attribution to provide recommendations for optimizing ad budgets.

Potential Outcomes

Amazon sellers partnering with Phoenix Dataworks can anticipate:

  • Reduced Stockouts: Minimizing lost sales opportunities through accurate demand forecasting and timely reordering.
  • Lower Inventory Holding Costs: Avoiding overstocking by aligning inventory levels with predicted demand.
  • Improved Advertising ROI: Better allocation of ad spend towards profitable campaigns and keywords, lowering ACoS/TACoS.
  • Increased Profitability: Enhanced visibility into true product profitability after accounting for all fees and ad costs.
  • Time Savings: Automating data collection and reporting frees up valuable time for strategic activities.
  • Faster Response to Market Changes: Quick insights allow for agile adjustments to pricing, inventory, and advertising strategies.

Boost Your Amazon Sales Performance?

Let's discuss how integrated data analytics can optimize your inventory, advertising, and overall profitability on Amazon.

Request a Consultation