A new tool tracks sales and pricing trends on Amazon.com
September 30, 2015 11:32 AM
Five companies are testing a new tool from Profitero for tracking sales and price changes on Amazon.com.
The software, called Amazon Market Share Estimation, tracks sales data from a sample of products and from “best-sellers rank” data that it collects directly from Amazon’s website, says Keith Anderson, Profitero’s vice president of strategy and insights.
It is designed to tell a retailer how fast a product category is selling on Amazon and how it’s faring against competitors in competing for market share on Amazon.
Among the companies testing it is Hyland’s Inc., a maker of homeopathic medicines. Hyland’s sells 300 products to such online retailers as Amazon.com, Target.com, Walmart.com, Drugstore.com and Vitacost.com.
“Knowing where we stand on Amazon versus others in our category is critical to attaining a competitive advantage,” says Garrett Bluhm, Hyland’s director of e-commerce. “Having a direct line of sight into how pricing, promotions and other variables affect share enables us to be much more opportunistic and responsive, and this translates into better performance.”
The tool can also track how much other merchants on Amazon’s marketplace are selling and at what price. That’s important because when Amazon itself sells a product it typically will lower its price to compete with marketplace sellers. And if the price gets too low, Amazon will send a notice to a supplier that it may stop stocking the item because it can’t sell it at a profit.
As Bluhm puts it, “Amazon has its systems dialed down to a science; they know if a product is or isn’t making a profit. They email us, ‘This product is bringing in a negative amount of money; unless you can discount it, we’ll discontinue the SKU as of this date.’”
Profitero, with offices in Dublin, Ireland, and Boston, says it monitors more than 275 million products available online in 40 countries.
The Amazon Market Share Estimation service is available as a standalone product or as part of Profitero’s e-commerce analytics suite.