Data is only as valuable as what you do with it. While many companies have become proficient at gathering data, far fewer are adept at transforming it into meaningful actions.
At Kaspien, we use proprietary applications to convert nebulous data into real, material gains for our partners. In our comprehensive approach, data drives fulfillment efficiency, mitigates risks, enhances marketing, and improves our organizational efficiency, all of which facilitate stronger and more fruitful partnerships.
We use many programs and strategies to make data actionable, but three of our most impactful efforts are: sales forecasting, intelligent ad automation, and organizational efficiency.
Mitigate Risks through Predictive Inventory Management
We process historical sales data through our inventory management system, enabling us to accurately forecast Amazon sales with a 96% accuracy. While 100% accuracy sounds ideal, some error is intentional: Because out–of–stock issues can slow a product’s sales velocity and harm a brand’s good reputation, we’ve purposely designed the algorithm to slightly over-forecast sales.
By predicting sales, we can purchase the ideal amount of inventory, moving it in a steady flow from your brand to customers without stagnating in warehouses. This in turn provides our partners a consistent and stable cashflow, while also significantly reducing Amazon inventory fees.
With more capital free from storage fees, Kaspien is able to more aggressively expand our partners’ catalogs, enhance marketing, and ultimately take a more calculated approach to Amazon that facilitates consistent, stable growth for our partners.
Refine Your Sponsored Ads through Intelligent Data Mining
Sponsored Product ads are the highest converting ad type on Amazon, which makes them one of the most valuable marketing tools in all of ecommerce. Since their introduction, Amazon has continued to expand Sponsored Products’ targeting capabilities by adding different ad groups and keyword generation. This added complexity is a double-edged sword, simultaneously increasing the ads’ potential profitability as well as their potential for wasted ad spend.
To ensure that Kaspien can keep providing industry-leading marketing results, we’ve built a bid optimization software called AdManager. AdManager automates four major optimizations that minimize wasted ad spend and maximize conversion rates.
We fuel AdManager’s intelligent ad management automations with data drawn from Amazon. The program retains ad performance data indefinitely, in contrast to the 60-day window of historical data provided by Amazon. Informed by the long-term data, Kaspien is able to detect and capitalize on market patterns, enhancing our Amazon marketing strategies and amplifying our partners’ ROI.
Improving Organizational Efficiency to Better Serve Our Partners
Though data-driven applications and strategies are key, they’re still only a piece of the puzzle. The other major factor is the group of people using those tools.
In addition to fueling our internal software with data, we use data to empower innovation and improve our organizational efficiencies. After being processed in the relevant applications, the data is filtered back into a central database, allowing our purchasing, compliance, marketing, and product expansion teams to collaborate more efficiently.
By streamlining our processes internally and promoting easy cross-department communication, we recover valuable time that we then give back to our partners, helping them strategize and successfully navigate the ins and outs of Amazon, instead of slogging through logistics.
Our partnerships are grounded in a mutually beneficial relationship. With every innovation, we both take another step forward. If you want to learn more about our retail and agency services or our self-service software, reach out through our contact form.
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