2024-08-02 09:46:50
Convert competitor BSR/velocity into estimated daily sales (use the provided conversion table).
Compute ROP = Lead time × Avg daily sales + Safety stock (copy the spreadsheet formula).
Run a landed cost scenario per SKU (unit price + freight + duty + VAT + insurance + handling).
Pick shipping mode by value density ($/kg or $/CBM), lead time tolerance and stockout cost.
Automate: competitor alert → Zapier/Script → Slack + Freight RFQ → expedite air if urgent.
Who should read this
Core metrics & glossary (formulas up front)
Impact map: competitor signal → logistics action (compact table)
Data sources & how to get reliable competitor velocity
Converting BSR to estimated daily sales — practical method + caveats
Reorder point and safety stock — formulas, examples, spreadsheet formulas
Landed cost — components, calculations, downloadable-ready formulas
Shipping decision tree: sea vs air vs rail vs courier (rules & heuristics)
Worked numerical scenarios (3 SKUs with full math)
Monitoring SOP: automation recipes (Zapier + webhook + Google Sheets + Slack)
RFQ template + freight forwarder checklist + negotiation script
KPI dashboard fields & how to use them (CSV/Google Sheets ready)
FAQ (schema-ready answers)
Procurement managers, brand/product teams, 3PL operations, and international freight planners who want to translate Amazon competitor data into concrete replenishment, transport and landed-cost decisions to reduce stockouts and protect margins.
BSR — Amazon Best Seller Rank. Not direct sales; use conversion table below.
Estimated daily sales (EDS) — your conversion from BSR or tool output.
Lead time (LT) — total days from order confirmation to goods available for sale (factory lead + in-transit + inland).
Safety stock (SS) — buffer inventory to cover variability.
Reorder point (ROP) — ROP = LT_days × AvgDailySales + SafetyStock.
Days of inventory (DOI) — DOI = OnHand / AvgDailySales.
Value density — $ per kg or $ per CBM. Helps choose transport mode.
Landed cost — UnitCost + Freight + Insurance + Duty + VAT + Clearance + Inland.
Competitor signal | Immediate logistics decision | Time window | Example action |
---|---|---|---|
Sudden BSR improvement (+30% rank) or buy box price drop | Investigate; raise reorder priority | 0–48 hrs | Trigger alert; if velocity sustained, request expedited air top-up |
Small, sustained BSR rise (slow growth) | Monitor; prepare next sea restock | 3–14 days | Increase reorder frequency; no immediate air |
Seasonal promo announced (competitor coupon) | Short term buffer (safety stock) | 0–7 days | Split container: send partial by air for safety, rest by sea |
Recurrent out-of-stock competitor | Opportunity to raise price & maintain supply | ongoing | Keep larger FCLs; lower reorder frequency variability |
Tools: JungleScout, Helium10, Keepa, Sellics — they estimate units/day from rank and category. Use 3 sources and cross-check.
Seller Central reports: Your own historical sell-through (truth). Use it to calibrate BSR→sales heuristics per category.
Public signals: Sponsored ad changes, listing edits, reviews velocity. Combine for contextual signal.
Smoothing window: use 7/30/90-day rolling averages to distinguish spikes vs trend. For replenishment decisions prefer 30-day avg + 7-day for urgency.
Validation: sample 10 SKUs where you know actual sales and test your BSR→sales conversion. Adjust coefficients by category.
Important: no single universal formula exists. Below is a practical, conservative heuristic used widely by operators. Calibrate with your own data.
(These are rough ranges — calibrate to category and season)
BSR 1–10 → >100 sales/day
BSR 11–50 → 30–100 sales/day
BSR 51–200 → 10–30 sales/day
BSR 201–1,000 → 1–10 sales/day
BSR 1,001–10,000 → 0.1–1 sales/day
Practical formula (category-adjusted)
A safe working formula:
EstimatedSalesPerDay = K / (BSR^α)
Where K and α are calibration constants. Typical starting values: K = 1000, α = 0.9.
Example: BSR = 500 → EDS = 1000 / (500^0.9)
Compute step-by-step:
500^0.9: compute 500^0.9 ≈ e^(0.9ln(500)). ln(500)=6.214608; 0.96.214608=5.5931472; e^5.5931472≈268.5.
1000 / 268.5 ≈ 3.723 → ~3.7 sales/day.
Tip: use tools to estimate K & α for each category by regression on known SKU historical sales.
ROP = LT_days × AvgDailySales + SafetyStock
SafetyStock (simple) = z × σDemand × sqrt(LT_days)
z
= normal z-score for desired service level (e.g., 1.65 for 95% service level).
σDemand
= standard deviation of daily demand.
SafetyStock = AvgDailySales × LT_days × Buffer%
Typical Buffer%: 20% for reliable supply, 50% for variable supply.
Assume columns: ,,,D: Z
(e.g., 1.65)
ROP:=A2*B2 + D2*C2*SQRT(B2)
Safety Stock (simple %): =A2*B2*0.25 (25% buffer)
Avg daily sales = 5 units
Lead time = 30 days
Std dev daily = 2 units
Service level 95% → z = 1.65
SafetyStock = 1.65 × 2 × sqrt(30)
Compute sqrt(30)=5.4772256; 1.65×2=3.3; 3.3×5.4772256=18.0744 → ~18 units
ROP = 30×5 + 18 = 150 + 18 = 168 units
Components (standard):
Unit cost (ex-factory)
Packing cost (per unit)
Freight (sea/air/rail) allocated per unit
Insurance (% of CIF)
Customs duty (% of CIF depending on HS code)
VAT / GST (applies in many markets)
Clearance & brokerage fees
Inland transport to warehouse/FBA inbound prep
Misc. (bank fees, inspection fees)
Step-by-step example (full arithmetic, exact)
Scenario: 1,000 units ordered, unit cost = $3.50, sea freight for container allocated per unit = $0.80, insurance 0.5% of goods, duty 6% CIF, VAT 20% (applied to goods + freight + duty), clearance & inland = $200 total.
Goods = 1,000 × $3.50 = $3,500.00
Freight = $800.00 (given)
Insurance = 0.005 × Goods = 0.005 × 3,500 = $17.50
CIF = Goods + Freight + Insurance = 3,500 + 800 + 17.50 = $4,317.50
Duty = 6% × CIF = 0.06 × 4,317.50 = $259.05
VAT base = Goods + Freight + Duty = 3,500 + 800 + 259.05 = $4,559.05
VAT = 20% × VAT base = 0.20 × 4,559.05 = $911.81
Clearance & inland = $200.00
Total landed = Goods + Freight + Insurance + Duty + VAT + Clearance = 3,500 + 800 + 17.50 + 259.05 + 911.81 + 200 = $5,688.36
Per unit landed cost = 5,688.36 / 1,000 = $5.68836 → $5.69
Make it automated:Spreadsheet columns: ,,,,,,. Use formulas:
Goods = UnitPrice*Qty
Insurance = Insurance% * Goods
CIF = Goods + FreightTotal + Insurance
Duty = Duty% * CIF
VAT = VAT% * (Goods + FreightTotal + Duty)
TotalLanded = Goods + FreightTotal + Insurance + Duty + VAT + OtherFees
PerUnit = TotalLanded / Qty
Value density (USD/kg or USD/CBM)—higher density favors air for speed.
Lead time tolerance—how quickly you must restock.
Stockout cost—margin lost per day of OOS.
Variability of demand—if high, favor faster modes or higher safety stock.
Seasonality & promos—in promo windows, prefer speed to capture demand.
If value density > $30/kg and stockout cost > freight delta → air for replenishment.
If value density < $5/kg and lead time tolerance > 30 days → sea (FCL).
If shipping to Europe from China and moderate urgency (15–25 days acceptable) → rail (cost < air, time ≈ 15–20 days).
For samples/small urgent top-ups → courier.
Use a split strategy: forward ~70% by sea and 30% by air as a safety top-up for your top SKUs.
Calculate per-unit landed cost by mode.
Calculate lost margin per day of stockout.
If (lost margin/day × expected days saved by air) > (air freight delta / units moved), choose air. Else sea/rail.
Unit ex-factory = $12.00
Monthly demand (from competitor data) = 900 units → AvgDailySales = 900 / 30 = 30 units/day
Lead time sea = 45 days; lead time air = 7 days
Qty reorder = 2 × LT × daily sales for sea (safety) = choose 1,000 units for sea full container allocation simplicity. Use smaller air top-ups.
Landed cost inputs (approx.)
Sea freight per unit = $1.20
Air freight per unit = $6.00
Insurance, duties, VAT & fees: sum sea = $2.50 / unit, sum air = $2.50 / unit (same duty/VAT structure, freight differs)
Per unit total
Sea per unit = 12 + 1.20 + 2.50 = $15.70
Air per unit = 12 + 6.00 + 2.50 = $20.50
Stockout cost estimate
Gross margin per unit at selling price $35 (example): margin = 35 − shipped landed cost (assume other costs) ≈ 35 − 15.70 = $19.30
Expected lost margin per day if OOS = AvgDailySales × margin = 30 × 19.30 = $579/day
Decision logic
Air reduces lead time by 45 − 7 = 38 days. If switching to air prevents 38 days of stockout for 500 units, the value of the avoided stockout far exceeds the air freight delta. For high-velocity & high-margin SKUs, use air for urgent top-ups and sea for base stock (split strategy).
Recommended action: Keep a base of 1,000 units by sea; keep an air safety buffer (e.g., 210 units = 7 days of sales) prebooked monthly to avoid stockouts.
Forest Leopard International Logistics Co.