Learn About Sales Forecasting by KwickMetrics
Sales forecasting is the process of predicting sales for a product or service. It involves collecting data about past sales and making assumptions about future demand based on them. KwickMetrics can perform sales forecasting for your products and help you prepare yourself for unexpected demand.
Why do you need to forecast sales?
Sales forecasting is a vital part of the business management process. It helps you plan for future demand, supply and expenses so that your company can operate efficiently and profitably. It not only helps you with the quantity of units you need to be prepared to process, but also the timing of when you can expect a spike in demand because of deals, promotions, or events.
In this article, we'll look at some of the most common reasons companies may need to forecast their sales to stay competitive.
How does KwickMetrics Sales Forecast work?
There are many different approaches to forecasting. KwickMetrics is powered by state-of-the-art machine learning algorithms, which uses past trends along with other variables such as holidays and important Amazon event days like Black Friday and Cyber Monday to predict future sales.
Since this feature is still in beta, KwickMetrics only predicts and forecasts the future sales of your top five SKUs. This is because products with very low or insufficient data will not have clear seasonality; there will be no pattern of sales for such products, making it impossible to predict. The more sales your products have over a long period of time, the more accurate the results.
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How do we perform forecasting using historical data?
Historical data is often used as a method for quantitative forecasting because of its ability to show the past performance of a particular model or event.
The first data point is pulled from Amazon - this is the historical data. We augment this data with additional information such as a library of holidays and important Amazon events that may affect your sales. We have also planned to incorporate additional data points such as Amazon Advertising data as well as any deals or PPC campaigns you may have run during that time period. We then run this through our machine learning pipeline and voila! You are now able to see your sales forecast in real time over any period of time, complete with a comparison of last year’s actual sales.You can also view various statistics about how accurate our machine learning models are as well as compare for yourself the forecasted sales versus your previous sales from an earlier time period. We try our best to give you the most accurate results and are improving our pipeline every single day to give you faster, more accurate predictions.
A good idea of how much demand there is for your product will help you plan for success.
Sales forecasting is a way of planning for success. It helps you plan your supply chain, production and marketing efforts, and sales targets. The more information you have in advance, the better able you'll be to make decisions at a critical time.
Forecasting helps with all these things because it allows companies to estimate the demand for their products over time. In other words, if you know what they're going into business with, you can ensure they're ready when it comes time for them to sell those products!
To take your sales forecasting skills to the next level, you need to understand why it's important and how to improve your sales using this information. We hope this article has given you more insight into forecasting sales and how KwickMetrics’s new feature will help you in this. We are excited to announce that KwickMetrics is about to launch the sales forecasting feature to the public by the end of October. We will come back with an update on this in our next post. Happy Selling!!!
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