How accurate are the AMZ Insight’s Sales Estimates? We get that a lot from our customers especially those who are relatively new. Let me tell you first that there’s no way anyone can get these very important figures from Amazon who is not the part of their data team. So, we at AMZ Insight tracking more than a hundred thousand products from all categories to collect massive data. Then this data is analyzed by our full time employed senior data scientist to form the algorithm of sales estimates. We continuously track Best Seller Rank (BSR), Buybox, reviews and other data of hundreds of items from each category for analysis. Variety of data analysis techniques help us to form the relation between BSR, reviews and the unit sales. Once we have this relationship on hand then it is much easier to estimate monthly sales and revenue for the product.
Our highly expert team of software engineers then translate the outcomes of data analysis in to the code to show you in numbers. So, you can stay updated with precise monthly estimated sales of your competitors. A scattered plot of data points (as shown below) that we collect everyday leads us to establish the relationship between the BSR, reviews, Buybox and the sales.
Relationship Between Bestseller Rank and Sales
Its very important to understand this relationship that how sales and the Bestseller Rank are connected to each other. This is very easy, as a rule of thumb the items which make most sales will have the lowest number of BSR and least sold item would have highest number of BSR. As a seller you may already know that BSR 1 in any category is the top rank and increase in this number means lower rank. In the same way, regular sales ensure consistent sales rank. Amazon’s algorithm of calculating the sales rank is mostly based on the number of sales of that item.
How Accurate are our Sales Estimates
Well, in most cases our sales estimates are incredibly accurate except for the few of them. As we know, we get a scattered graph from our collected data points and the estimates are for a given time period. So, if a product makes a certain number of sales in that time period it’s more likely to make similar sales in future. But, in case there was a huge promotion running during that time period then it won’t likely to continue selling with that pace and our sales estimates may seem little bit too much for that item.
Many times we heard from our users that the sales of their own products are sometimes over or under estimated around 20% that’s why they make adjustment in the estimate according to that. Let me tell you that due to multiple scattered data points the average sales numbers that we get are the best estimates so you’re advised not to make the adjustments.
We don’t claim the sales numbers are 100% correct for the products but we do say the estimates are up to 90% correct. So, use these vital numbers to keep tracking the sales of your competitors and formulate your business strategy according to that.