Run the Monthly SKU Action Review

Outcome: Turn SKU data into action cards with owner, evidence, next step, risk if ignored, and review date.

What to do in this lesson

Watch: start with the lesson video.
Learn: use the summary and key points to capture the operating principle.
Do: complete the action steps against one real product, SKU, campaign, supplier, or workflow.
Submit: write one action card with owner, evidence, next step, risk, status, and review date.

Watch

Hosted on Google Drive.

Lesson summary

This lesson teaches about the combined rank analysis metrics on the Amazon seller platform. It explains how the combined rank score is calculated by averaging the selected metrics, and how the combined rank table displays the number of products with a certain combined rank score. The key is to only select up to three relevant metrics to get a meaningful analysis.

Key points

The combined rank score is calculated by averaging the selected metrics (up to 3)
The combined rank table shows the number of products with each combined rank score
Selecting more than 3 metrics can make the analysis less useful
The combined rank only references the selected metrics, ignoring any unselected metrics
The decimal places in the combined rank table will change if only 2 metrics are selected

Action checklist

Select up to 3 relevant metrics to analyze for the combined rank
Avoid selecting all available metrics as it will not provide a meaningful analysis
Understand how the combined rank score and table are calculated based on the selected metrics

Full transcript

Open transcript

Hello Titans, Justin Dyson here, and in this video, we’re going to be diving into the combined rank analysis metrics, okay, and like, how does it actually function? This is not meant to be a super in-depth video of how the whole tool works. I simply want to talk about this tab here for combined rank, and then what all of these numbers, 1s, 2s, and 5s, and all that stuff means. So the combined rank itself, like we talked about going through the different presentations, it is combining each of these metrics together based on whatever you selected, okay? So before you ran the analysis, you got to pick whether it was totaling that revenue, CM3, and CM3, or maybe it was just these two, or maybe you don’t have ads data and you need to use these metrics, it doesn’t really matter what you’ve selected, however, you should never pick more than three, and you should really never pick any more than what is listed here, okay? And the reason is, when you start mixing and matching random numbers together, it doesn’t really give you a good indicator of maximizing profit or cash flow, okay? So stick to the numbers that are outlined here, or the numbers, but the metrics that are outlined here for what to combine, and then select those here. So if you select all these, you will learn absolutely nothing about your products, like it’s not going to be useful, okay? So don’t pick all of them, just pick the ones that you want to look at to solve a specific cash flow need. So in this example, we have these three selected, so totaling that revenue, CM3, and CM3 recovery of capital, okay? And we click run, and it spits this out. So the combined rank column and the combined rank table up here are correlated. For the combined rank score, what this is doing is it is averaging the three metrics that you selected together. So if totaling the revenues of one, CM3 dollars rank is a one, CM3 ROC rank is a one, the average of one one and one is one. So that’s why you get a one in the combined rank. It does not matter what is in CM2, CM2 ROC, or 1000 unit turnover. So when you come down here, I’m sure there’s some examples somewhere where you’re going to have maybe not necessarily in this account, but it isn’t uncommon to have where you have literally a one here, a one for CM3, CM3 ROC, and then there’s like five and five or something weird, okay? That is perfectly okay, because the combined rank is only averaging the scores of the metrics selected, okay? So hopefully that’s super clear. If you do the math for yourself, you’re literally taking one plus one plus three, which is five divided by three is 1.7, okay? That’s how that number comes about. Now when you come up here to the combined rank analysis table, that’s why you have the incremental numbers here. It is because you’re taking the average of ones, twos, threes, fours, and fives, and when you average them together, you can get a one, a 1.3, a 1.7, two, 2.3, 2.7, and so on, okay? This table, again, the details of everything in this table is in another video, but the number of parents with a score of one are indicated here, a 1.3 indicated here, 1.7 indicated here. So these numbers correlate with what is in this column here. So that’s it. I’m going to keep this one short and sweet. All I really wanted to call out is the understanding of what the combined rank is. It only references the selected items. It will not reference anything else. This is a one more caveat. If you were to do this with just two metrics selected, the actual decimal places are going to change in this table, because again, when you’re only measuring two things, you can’t get an average of 1.3 or 1.7, it can only be 1 or 1.5 or 2 or 2.5 and so on, okay? So again, when we look at the table down here, you’re going to have a 1, a 2, the average is 2.5, okay? In the same example here, you have a 2 and a 1, so the average is still 1.5, even though the numbers are reversed. So that’s how the combined rank is actually created. So that understanding has to be understood, because if you are looking at this and like, well, I’ve got a 1 and a 1 and then 2.5, why is it still a 1? It’s because the 2.5s are ignored, okay? That’s why. So hopefully, that makes sense and if it doesn’t, feel free to ask the network and we will get you all sorted out.

Resources

Source lesson: Setting up the Combined Rank Analysis
Resources: none attached yet.

Track: 05 — SKU Growth & Cashflow Operations
Module: Inventory & Cash Decisions