Countdown to Prime Day: How to Identify Promotional Opportunities with COGS, Conversion and Traffic Data
- Jennifer Dare
- On April 5, 2019
- 0 Comments
Discover potential Prime Day promotions by comparing product profitability and conversion rate data with traffic data to identify your biggest opportunities—then promote them! Quantify can help you discover the biggest winners.
April has hit, signaling the beginning of spring – and the second quarter. As Amazon business owners, we also begin the intense march towards Prime Day! Last year, sales for this event topped 100 million products. And you have a huge opportunity to capitalize on this spike in traffic. All eyes will be on Amazon – are you ready?
Likely, there’s a lot of planning you need to do – and yes, in April.
And that means crunching the numbers now so you can make good decisions! As the senior product manager for Quantify, our reporting product, my eye is on metrics all the time. So in thinking about Prime Day prep, I want to remind you about three things you need to be thinking about in Quantify this month to ensure you’re planned, prepped, and Prime Day ready!
Use the cost of goods sold to see what really performs.
Quantify is powerful because it provides you with all of the information you can get in Seller Central plus more – to give you a better, clearer picture of your business.
One of the things that Quantify enables is a clearer picture of your net profit by uploading the cost of goods sold (COGS) for your products. COGS is an important metric because it is a profitability measure. It evaluates how efficient you are in managing fees outside of Amazon in the production process, and we’ll cover more about how to calculate it in a future post.
Quantify helps you manage your catalog and identify top performing products — also for FBA customers, we notify you when supply levels are low and it’s time to reorder. Quantify also includes tagging which allows you to organize your catalog by product line or seasonal stacks. With your new, clearer understanding of which products are most profitable, you can start prioritizing your game plan for Prime Day.
Prioritize the performers…
So, am I saying you should change your selling strategy specifically for Prime Day? It’s worth a look! With current estimates suggesting that half of US households will be Prime members this year, you want to be sure you’re prepared to feature the products that you know will sell – and make you the most money.
One thing I think is a great approach is to combine product profitability information with conversion data to determine where you have some great opportunities.
What I mean is that you should combine looking at the metrics in your Quantify Financial reports (like net profit margin, net sales, and net profit) with data you can find in the Quantify Promote report. This report shows you the products that have high conversion rates (greater than 25%) but need more traffic. These are great opportunities for you! If you can find the products that convert that net you the most profit, they are perfect contenders for promotion.
…Then promote them!
So what does promotion mean? Amazon has a huge number of advertising opportunities, but there are two main things you should be doing to get started.
- Investigate Sponsored Products ads. Here’s a great place to get started – or check out our Ignite product if you want to better automate campaigns you’re already planning.
- Optimize the keywords in your listing to get more traffic to these products, and to encourage conversion when a buyer gets to your product page (through search or ads).
Quantify is a powerful reporting tool that can help you make decisions much more effectively, and right now is the time! Prime Day preparations have already begun for the most successful Amazon sellers, so these tips should help you get started now.
Oh, and I’ve got a bonus tip: If you have a long lead time for some of your top-performing products, start checking out the Inventory report for FBA now. This report gives insight into stock levels, and planning ahead will ensure you can meet your demand on Prime Day!
If you aren’t keeping an eye on your business health, you can test out Quantify with a free 30-day trial.