Based on the remaining weeks of supply for each SKU, stock level report is shared.

Any SKU is considered understock if by the time you place a new order and receive the next shipment, the current stock level is reduced to zero.

Minimum level in the parameters can be set as a sum of lead time stock (weeks) + buffer stock (in weeks).

On the other hand, A SKU would be overstock if the stock substantially exceeds the lead time to get the SKU back in stock.

Based on the PPC Sales % and the TACoS of each SKU, report is shared for SKUs where there is potentially underspend or overspend of PPC. Also, report is shared for such SKU where PPC spend has been incurred but there is no revenue generated.

PPC Sales % is the % of sales generated from advertisement compared to the overall sales of the SKU. Higher the PPC Sales %, lower are the organic sales and vice versa. This would mean that the product is selling only if we are incurring more cost on PPC and there are low organic sales.

Total Advertisement Cost of Sales (TACoS) % is the % of advertisement spent to earn the total revenue of the SKU. Higher TACoS would imply that there are low organic sales. Generally, a seller can consider as overspending PPC on a SKU in case if the PPC Sales generated are more than 50% of the total revenue (PPC Sales%) and he has spent more than 30% of the revenue in generating the sales (TACOS%). We can mutually decide and finalise the parameters suited for your business.

Order Conversion rate is one if the important factor to understand if the product is priced rightly. Considering the units ordered during the period and the sessions generated for the SKU, conversion rate is derived. Higher the conversion rate, lower the product is potentially priced and vice versa. It is important to understand the right price point for any product.

Analyzing the sales of the products period over period becomes important to understand the performance of each product and take timely corrective actions (For e.g., increase sales velocity by running deals or promotions in case there is significant decrease in sales or increase the price to reduce the sales velocity in case if there is significant increase in sales)

Analyzing the fulfilment costs as well the storage costs becomes important in order to save profits. One can identify SKUs where high fulfilment costs is charged by amazon and decide if any restructuring is required in the packaging. Similarly for SKUs where there is High storage cost, one need to evaluate if placing any removal or disposal order is economical.

Various factors are important in considering an ideal budget for ad spend on any product. Analyzing the Margin ROAS (for both on overall sales as well as PPC Sales), Revenue ROAS, Margin after PPC Spend, PPC Sales % and other criteria’s becomes important in deciding a budget. However for new product and strategic products, the spend needs to be budgeted based on best judgement.

Based on the various criteria’s as mentioned above, we categorize each SKU into different categories highlighting the ones which give maximum return for every dollar spent and also those which definitely result in losses for even a dollar spent. We allocate the PPC spend budget to maximize the return on investment of PPC spend. You can also review the SKUs and then manually change the allocations and the category considering the new products or any strategic products while finalizing the PPC spend.

We share detailed performance reports (weekly or monthly or both) for each marketplace for all the SKUs which helps in assessing performance for each product as well as the marketplace. This report gives a more holistic view on the performance of each SKU and which factors need to be further assessed in order to optimize the profits.