New Amazon Real-Time Revenue Forecasting

Picture this: It’s Black Friday, and you want to know where your sales are headed by the end of the day so you can make some key marketing and pricing decisions. Our Real-Time Revenue Forecast does all the legwork, making it easy to see whether you’re on track. 

Actionable, Real-Time Data at your Fingertips

As a former operator myself, I know how crucial it is to have an estimate of where your day is going, especially during big events. Have you ever seen a company war room where teams gather to track metrics and make decisions during key moments? The end of day forecast can be crucial, driving adjustments to pricing, discounts, and marketing in real-time.  

In contrast, one of our clients discovered the day after Prime Day that their ad agency had gone off the rails, overspending their budget by millions of dollars while selling at breakeven. If our client had been monitoring throughout the day, they could have directed their agency to translate higher than expected demand into more margin rather than giving away product to their customers essentially at cost. With this tool, you can have your own Amazon war room anytime you need it. 

Do you want to know how we made this tool?

To get these results, it took multiple iterations to find the best methodology. Our data engineering and science teams tried multiple methodologies: using different historical benchmarks, ways of finding the right curve, and adjusting for partial hourly data. The final product is the result of many hours of development and testing.

How else can our forecasting help: Using more advanced machine learning, we also develop daily forecasts for every product in a client’s catalog. For some clients, this amounts to thousands of daily forecasts generated automatically and an aggregate topline revenue forecast. These are useful for Finance and Ops planning.

You may be wondering: “That sounds great, but how can this tool do this?” 

Our Real-Time Revenue Forecast uses statistics to predict hourly sales for the rest of the day based on historical data and performance so far. We do this every hour as more data comes in and automatically generate multiple forecasts, picking the best one to use.  

Cumulative trends gives an accurate forecast based on daily and historical activity.

Modeled Revenue Forecast projects out performance in months to come.

Conclusion

With real-time forecasting, you can more easily adjust ad budgets and promotions on the fly to ensure you hit your numbers on key days. Looking ahead, we are exploring ways to use this data to send alerts and notifications to notify proactively on significant changes. Let me know your thoughts and what else you think we should be building in this area! 

Additional Posts

Spotlight article on our client True Classic
iDerive Client Spotlight: True Classic Tees
Explore the transformative collaboration between iDerive and True Classic Tees as they navigate the challenges...
Banner image for article on navigating Amazon in 2024 for Sellers
Navigating Amazon in 2024: For Sellers
Learn the topmost critical areas Amazon sellers need to focus on to optimize performance in 2024.
Selling on the Walmart marketplace
Walmart Marketplace: Your Next Essential Selling Destination
Get started on the Walmart Marketplace.
Improve your sales this holiday season on amazon with these collection of help tips by Andrew Tookey
Q4 Success on Amazon: iDerive's Expert Guide
Amazon sellers, get the most out of your Q4 on Amazon.