With a quantifiable weekly weight index, operators can break away from the traditional empirical operation ideas and track sales through data. For Amazon operations, the weekly weight index has the following three uses.
1. Decomposition of daily sales targets
If Amazon stores are managed as retail stores, the performance appraisal targets must be decomposed into the smallest executable unit, that is, the daily sales target. Considering the impact of cyclicality, you can refer to the following formula to formulate a reasonable sales target:
Daily sales target = monthly sales target X (daily weight index / monthly weight index)
(where the monthly weight index is equal to the sum of the daily weight indexes of the whole month)
Let’s take the data just now as an example. If the monthly target of store A is 30,000, the sales target that store A should achieve every day can be calculated.
2. Monthly sales forecast
In addition to setting goals, you can also track the performance completion in a timely manner according to the daily sales situation to maximize sales. Here, the following formula can be used:
Monthly sales forecast value = 2-day sales / (Daily weight index / Monthly weight index)
Assume that today is the 18th, there are 12 days until the end of the month, and store A has completed a total sales of 17,510, with a completion rate of 58.4%. At this time, follow up in time according to the weekly weight index to observe the sales completion.
3. Sales comparison
For some special sales nodes, such as Prime Day, Black Friday, Cyber Monday, etc., operators need to set performance goals separately. At this time, it is necessary to make a comprehensive comparison of sales over the years. In addition to setting appropriate goals, operators can also guide reasonable stocking to avoid out-of-stock or redundant inventory.
At this time, the unit weight value can be used to measure:
For example: Assuming that the sales of store A on Prime Day (Tuesday only) in the past three years were 1581, 1795 and 1663 respectively, the unit weight value can be used to compare the sales status of the three years.
Store A’s Prime Day sales have been declining in recent years, and the operator needs to further analyze the cause of the problem.