Ecom Markdown Optimization Simulator Demo

5
Ecom Markdown Optimization Simulator Demo
1,000
30 mins

Setting the right discount is a tricky balance: too high, and profits suffer; too low, and products may not sell.


Our Markdown Optimization Simulator uses historical sales data to recommend the optimal discount for each product while protecting profit margins.


So in ecom biz, we do discount working, one for BAU days and another for Event days. This working we do every month and then run the discount separately for BAU n Event days. Now instead of doing that manually on excel, the tool will do that while taking into account gross margins so that we don't end up giving more discount than is required. There is a point in the graph where revenue don't essentially go up, infact degrows, with higher discount. The model finds that out.


Our Markdown Optimization Simulator uses Linear Regression model that predicts how different discount levels impact units sold, revenue, and gross margin. It identifies the optimal markdown point where revenue peaks without destroying margins, and analyzes the trade-offs between inventory liquidation and profitability.


The result? Data-driven recommendations that help brands and retailers price smarter, sell faster, and protect margins/profits.


Let's connect to understand how we can build it and finetune it for your brand.