In the past, starting an online business meant guessing whether a product was popular or not. But now, thanks to technology and big marketplaces like Amazon, things have changed! Third-party tools like AMZScout can estimate sales of Amazon products at a far better accuracy than anyone. This guide is for Amazon sellers who want to understand how AMZScout estimate sales and offers insights to make better business decisions.
Why Do Amazon Sellers Need Sales Estimation Data?
Amazon product sales data can be extracted from both web app and Chrome extension. Find out how to use AMZScout Chrome extension & how to use AMZScout Web App in our extensive guide. Learn about installation, features, and best practices to use the extension.
Now, when sellers start their Amazon journey, understanding how well a product is selling becomes a crucial piece of the puzzle. The reasons behind this are as clear as day.
- Informed Decision-Making: Imagine running a store, but you can’t see how many customers will buy a particular product. This is where sales estimation comes in handy. Knowing how well a product is selling allows sellers to make informed decisions like managing the inventory and avoiding out-of-stock mishaps.
- Inventory Management: Accurate sales estimates help sellers keep track of what’s popular and what’s not. This means they can avoid stocking too much of a slow-selling product or, conversely, ensure they have enough of a hot-selling item to meet demand.
- Marketing & Advertising: Understanding a product’s sales performance influences marketing decisions. If a product is doing well, sellers might invest more in advertising to boost its visibility and capitalize on its success. If sales are slower, a different marketing approach might be needed to give the product a push.
How Does AMZScout Estimate Sales of Any Product?
AMZScout estimates sales by considering the following 3 factors or rather steps.
- Checking Ranks: AMZScout looks at the rank of each product on Amazon. The lower the number, the higher the sales.
- Tracking Product Inventory: AMZScout can’t track all the products because there are so many. So, they keep an eye on the sales of top-ranking products, like #1 and #5.
- Smart Averaging: AMZScout may not know the sales of every product, but by looking at the sales of #1 and #5, they can make smart estimates for others. It’s like figuring out the average based on what they do know.
Let’s Try an Example
Imagine AMZScout knows the exact sales for products ranked #1, #2, #5, #8, and #10. For products like #3, #4, #6, #7, and #9, they don’t know the sales, but by using their smart averaging, they can make a good guess. It’s like connecting the dots to see the bigger picture.
This is a simplified explanation, and in reality, they use data from many points, including real Amazon sales. If a product doesn’t have a rank in its main category, they estimate sales in subcategories, making their estimations more accurate.
The following image is an example of how AMZScout shows the estimated sales data.
So, that’s how AMZScout gives us a pretty good idea of how well products are doing on Amazon!
Accuracy & Limitations of AMZScout Sales Estimations
There are a lot of things that go into building the tool and the data sources for how AMZScout estimate sales. AMZScout’s sales estimates are built on diverse data sources, making them valuable insights for Amazon sellers. The accuracy of these estimations is greatly enhanced by the real-time data from various points in the Amazon marketplace. By considering a multitude of data, including actual sales figures, AMZScout aims to provide users with reliable and up-to-date information about product performance.
While AMZScout strives for accuracy, it’s important to acknowledge certain limitations that can affect the precision of estimates.
- Sudden changes in market trends
- External promotions, or external events
- Seasonal fluctuations in demand can affect sales rank
- Potential shifts in consumer behavior during different times of the year
- Holidays or special events can introduce temporary distortions to sales data
Find out more on benefits and limitations in our AMZScout review.
How often are the AMZScout sales estimations updated?
AMZScout regularly updates its estimations to provide users with the most current information. However, the frequency of updates may vary based on factors such as product popularity and changes in the marketplace. Check more details about AMZScout here.
How does AMZScout handle products without a Sales Rank?
If a product doesn’t have a Sales Rank in its main category, AMZScout estimates sales in subcategories. This approach enhances the accuracy of estimations for products that may not have a direct ranking in their primary category.
How does AMZScout handle seasonal variations in sales?
AMZScout considers seasonal variations in its estimation process. Sellers should be aware that certain products may experience fluctuations in demand during different times of the year, and this can influence the accuracy of sales estimates.
What data sources does AMZScout use for sales estimation?
AMZScout utilizes a combination of data sources, including real Amazon sales data, to provide comprehensive and accurate sales estimations.
Does AMZScout consider international marketplaces in its estimations?
Yes, AMZScout takes into account data from various Amazon marketplaces, providing estimations for products in international markets.
Does AMZScout offer any integration options for sellers or third-party tools?
AMZScout primarily operates as a standalone tool. For the latest information on integrations, you should check the official AMZScout website or contact their support team.
Is the Sales Estimator tool Free to use?
Yes, the Sales Estimator is a free tool. At the same time, AMZScout comes feature-packed. If you wish to buy a premium version of it, we have exclusive AMZScout discount coupons to save up to 90% on your subscription.