Amazon Sales Monitoring & Demand Planning

We automated inventory forecasting and nightly reporting for an Amazon seller—cutting overstock and reclaiming capital tied up in dead stock.

Data analysis dashboard for e-commerce

KPIs We Tracked

  • Sales Velocity (Units/Day)
  • Inventory Turnover Ratio
  • Stockout Rate / Days of Cover
  • Advertising Cost of Sales (ACoS)
  • Total Advertising Cost of Sales (TACoS)
  • Customer Return Rate
  • Demand Forecast Accuracy (MAPE/WAPE)
  • Buy Box Percentage

Technologies Used

  • Amazon Selling Partner API
  • Amazon Advertising API
  • Azure Fabric / Data Lakehouse
  • Microsoft Power BI
  • Python (Pandas, Scikit-learn, Prophet)
  • Inventory Management Software APIs
  • Cloud Functions (e.g., Azure Functions)

The Challenge

An Amazon seller was losing margin to stockouts, overstock, and opaque ad spend. Their operation struggled with:

  • Inventory Stockouts & Overstocking: Demand swings left shelves empty or capital locked in excess inventory.
  • Inefficient Ad Spend: Campaigns ran without clear attribution or profitable keyword focus.
  • Manual Forecasting: Spreadsheets couldn't keep up with seasonality and promotions.
  • Data Silos: Sales, ads, and inventory lived in separate systems with no single source of truth.
  • Dynamic Marketplace: Competitor moves and fee changes required faster decisions than weekly manual pulls allowed.

What We Built

We delivered an integrated analytics and automation platform:

  1. Automated Data Extraction: Pulled sales, inventory, FBA, advertising, and settlements via Amazon SP-API and Advertising API.
  2. Centralized Data Hub: Consolidated streams in an Azure Fabric lakehouse with cleaned, analysis-ready models.
  3. Performance Dashboards: Built Power BI views for sales trends, days of cover, stockout risk, ACoS/TACoS, SKU profitability, and forecasts.
  4. Demand Forecasting: Deployed time-series models accounting for seasonality, promotions, and ad impact.
  5. Inventory Optimization: Added reorder alerts and quantity recommendations tied to forecasts and lead times.
  6. Ad Spend Analysis: Surfaced keyword and campaign ROI so budget moved to what actually converted.

Results

After rollout, the seller delivered:

  • 25%+ overstock reduction by aligning inventory to forecasted demand.
  • Fewer stockouts from timely reorder signals instead of reactive buying.
  • Lower ACoS / TACoS by cutting spend on unprofitable keywords and campaigns.
  • Clearer SKU profitability after fees and ads—so weak products got fixed or cut.
  • Hours back every week by replacing manual data pulls with overnight reporting.

Tighten Amazon inventory and ad ROI

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