RestockPro offers merchants the ability to see product potential and profitability on the SKU-level. The Restock Suggestions page gives you a wide view of many different metrics that can tell you how your products are selling, what the competition is like and help you determine whether or not to restock items.
The Restock Suggestions grid might look like data overload at first! That is because the suggestions of which SKUs to restock may be based on many factors. Different factors will be important to different types of sellers. Luckily, with the ability to hide and show various columns, use sorting, and save custom filters - RestockPro gives you a lot of powerful features to look at your SKUs in a way most valuable to your business. It refreshes all of the figures and crunches the numbers for you, offering suggestions based on well-informed supply chain formulas. However, the suggestions are just that, suggestions, and you will need tweak them based on your analysis of the figures, market savvy, and probably a bit of intuition.
Here are some considerations and useful ways to slice and dice through the suggestions:
Estimated Margin, EM% and Markup % - First and foremost, you will want to focus on products with the best margin. Sort the grid by margin or create a filter that hides any products that don’t meet your minimum criteria. Your 30D Velocity times your EM gives you a feel for the profit potential for the next month. See Estimated Margin Calculation.
Historical Sales - Review your sales figures from the past week, month, 3 months and 6 months. If your product has been well-stocked (ie, not having major periods of out of stock), the past sales give you a good indication of future potential demand.
Competition - RestockPro shows you how many FBA and non-FBA sellers there are for your SKU and even whether Amazon is competing with you. The more competitors there are, the less opportunity you have to own the Buy Box. You will need to weigh the competitive factors when deciding which SKUs or SKU parts to restock.
Supplier Cost - There is inherently less risk associated with lower cost items because there is less of a cash investment. Therefore, given two products with the same margin, you might evaluate which one to focus on based on the cost.
Category and Rank - The category and rank show the product popularity on Amazon and may be another consideration for assessing potential sales.
Beyond the Restock Suggestions page, RestockPro offers a variety of other powerful reports:
SKU Profitability Report - This gives you a historical view of past sales and estimated profit
Monthly Sales Analysis - Shows a graphical analysis of the trend in sales and out-of-stocks for up to a year
Supplier Performance - Helps gauge your supplier relationships and see which suppliers’ products yield the best sales and margins. This report also provides a graphical insight into aging inventory
Inventory Turn Report - This report calculates how quickly your products are turning over. Items with high turn and low turn should be analyzed - high turn with high out of stocks might indicate you are not restocking aggressively enough. Low turn items are at risk for becoming stale - consider strategies to move them by lowering the price, removing them, or bundling with other products as a kit.