The Predicament of Predicting Demand
It’s a common challenge: Inventory is under ordered at the start of a pivotal selling season, but by the time the miscalculation is corrected sales have started to dwindle — turning what was once an out-of-stock issue into an overstock problem.
Without reliable forecasts, a seller will always run the risk of racking up fulfilment centre holding fees and inflated delivery costs. And without a steady stream of accurate insights, it can be incredibly difficult to predict demand or plan for peak seasons.
Whether it’s taking up space at your own warehouse or sitting in a third-party fulfilment centre, having the correct inventory level is critical. Getting it right every time requires in-depth forecasting for an accurate outlook at sales, channels and SKU-level information … the kind that accounts for both typical and seasonal sales environments.
Prefer the PDF version? Download the Demand Forecaster Overview here.
Turning Overwhelm into Advantage
The sheer volume of e-commerce transaction data that’s available today can put some amazing insights at every retailer and manufacturing brand’s fingertips. Data scientists have never had it so good.
But you’re not a data scientist.
You’re a time-strapped seller in need of accurate, actionable forecasts that can be applied across marketplaces and fulfillment centers — something capable of saving you from fees wasted on stocking surplus inventory and revenue lost to closeout prices when it comes time to eliminate the excess. And you need it yesterday — without blowing your budget on dedicated data scientists, costly consultants or a new inventory management tool.
What you need is an uncomplicated, reliable way to automatically predict item-level demand across multiple marketplaces based on:
- Historical sales
- Fast-moving e-commerce trends across hundreds of channels
If only you could more accurately predict sales and inventory this way, the risks of overstocking and underselling might just become a problem of the past.
How It Works
ChannelAdvisor’s Demand Forecaster is a data-driven forecasting tool that can help e-commerce sellers predict their inventory needed to meet upcoming sales volume, without over or understocking.
Combined with marketplace data, Demand Forecaster applies machine learning to perform detailed, SKU-level analysis and provides predictive targets for upcoming sales across channels. It’s an indispensable tool designed for sellers to provide critical insights into product-level demand so you can:
The stock level predictor helps empowers brands and retailers to predict inventory through seasonal sales cycles. This data makes it exponentially easier to avoid missing sales opportunities from running out of stock too soon.
Demand Forecaster helps reduce unnecessary inventory fees as well as unprofitable closeout pricing to adjust supply. How? By predicting per-product estimates of what sales targets will look like and an estimate of when stock will run low over a period of 30, 60 or 90 days.
With the historical seasonal sales analyser, which pulls from an astounding $8.1 billion in GMV data representing thousands of sellers across numerous channels, sellers can more accurately align inventory targets to the latest marketplace trends. Additional analysis can be done when evaluating new marketplace opportunities to reveal accurate sales insights, enabling sellers to choose the most profitable marketplaces for their products long before launching.