What is demand forecasting, and why does my business need it?

Demand forecasting essentially dictates what products to buy and what time of year. It’s a predictive analytics process that uses historical data to estimate the demand your customers will have for your goods in the future so that you can order accordingly. Demand forecasting ensures that your inventory availability meets the needs of your customers. One tremendous benefit of this? Your business can avoid lost sales—this is essential because a lost sale costs more than you think. Lost sales that aren’t accounted for (and therefore not tracked) can’t be factored into future forecasts—that means you can’t track the revenue loss that was caused directly by these out-of-stock periods.

What’s worse? When you run out of stock on Amazon, you can lose your page placement to competitors—throwing away months (if not years!) of hard work, time, and money.

Another reason that proper inventory demand forecasting is critical to the success of your business is that it ties into your brand’s reputation. When an item is OOS, customers become frustrated—and 70% of shoppers who experience three or more stockouts will stop buying from your business altogether.

Your business doesn’t need just any demand software—you need the best forecasting capabilities available, and RestockAMZ delivers it.