Intelligent Data Integration of Inventory and Sales Velocity Into Bidding
The Challenge
A fashion sneakers e-commerce retailer was experiencing significant growth but facing critical inefficiencies in their marketing strategy. Despite using "best practices" recommended by Google, they confronted three major challenges:
Wasting ad budget on high-demand products that would sell organically
Investing in marketing products with limited stock that quickly sold out
Neglecting slow-moving inventory that accumulated in their warehouse
These inefficiencies were not only inflating their marketing costs but also creating inventory imbalances that affected their overall business performance.
Our Approach
We developed a comprehensive solution that bridged the gap between their inventory management and marketing platforms:
Unified Data Foundation
We created a seamless integration between their Power BI business intelligence system and Google Cloud Storage, establishing a single source of truth for all product data.
Real-Time Inventory Intelligence
The solution incorporated critical inventory metrics, including:
- "Weeks-in-stock" calculations based on current sales velocity
- Stock levels across all SKU variations
- Brand popularity and demand forecasting
- Limited edition and waitlist status identification
Dynamic Budget Allocation
Our algorithm automatically adjusted marketing spend based on inventory intelligence:
- Reduced or eliminated spend on highly sought-after brands with organic demand
- Minimized investment in products with low "weeks-in-stock" metrics
- Redirected budget to slow-moving inventory with healthy margins
- Protected conversion rates by preventing promotion of low-stock items
24-Hour Refresh Cycle
The entire system updated daily, ensuring marketing decisions always reflected the current inventory reality.
The Results
Measurable Outcomes
- Revenue grew by 180.7% year-over-year in their primary market
- Ad spend increased by only 108% (compared to 156% growth before implementation)
- ROAS improved by 56.5%, reaching 9.7 (up from 6.2)
- Overall project ROI of 798% including implementation costs
Strategic Business Evolution
- Inventory Optimization: Balanced stock levels across product categories
- Enhanced Customer Experience: Eliminated frustration from out-of-stock promotions
- Strategic Decision-Making: Connected marketing spend to inventory turnover
- Operational Efficiency: Client created a new role dedicated to the system
"This success story demonstrates the power of connecting traditionally siloed business systems. By bridging the gap between inventory management and marketing platforms, we created an intelligent system that made decisions based on the complete business reality, not just marketing metrics."
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