Product ranking on Amazon is based on machine learning algorithms. These models are using multiple sources of information to index every product on all relevant search terms. One of the data points that is used is the sales history of the product. This signal can be boosted using Amazon deals of the day.
At m19, we analyzed data cross hundreds of amazon accounts to measure the impact of deals of the day on the product’s sales velocity. And guess what, deals have a great positive impact on 95% of products that didn’t run out of stock in the following weeks.
Here is a short description of the experiment :
- Compute total sales averages per ASIN 15 days before and 15 days after the deal of the day date
- Remove the deal’s day from the data set
- Remove ASINs that run out of stock during the 15 days following the deal
- Remove Special days from the experiment dataset: Prime Day, Black Friday, and Cyber Monday …
Below is an extract of products that got the Deals of the day boost. The impact is obvious in the sales velocity. The lasting positive effect on some specific keywords rank can be also a good metric to look at to measure the deal's impact.
Average daily total sales in euros
In addition to sales velocity, every Amazon seller who is running deals of the day should be closely monitoring the following :
- Level of stock, a deal of the day can pretty quickly mess up all the sales forecasts
- Main keywords organic ranking
- Products margin especially if heavy advertising is running on the product. Lowering the price has a direct impact on margins.
Deals have 2 weeks lasting boost effect on promoted products.
Every eligible seller should consider using them to increase profit or liquidate stock while keeping an eye on product margins because of the deal's discount.
William & Tarik