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Inventory management is a critical aspect of any eCommerce business. It can mean the difference between success and failure, as poor inventory management can lead to running out of stock or holding too much inventory, both of which can hurt your bottom line. One of the essential aspects of inventory management is forecasting sales and inventory needs. With effective inventory forecasting, you can make informed decisions about your inventory and avoid lost sales due to stockouts or overstocked items.
BigCommerce inventory forecasting is a powerful tool that helps you understand your sales trends and predict future demand. In this article, we will dive into what this feature is, how it works, and how it can benefit your eCommerce business.
What is BigCommerce Inventory Forecasting?
BigCommerce inventory forecasting is a tool that uses historical sales data to predict future inventory needs accurately. It uses advanced algorithms and data analytics to forecast sales trends and ensure that you always have the right products in stock at the right time. With this feature, you can make informed decisions about your inventory, purchase orders, and avoid stockouts or overstocked items.
How BigCommerce Inventory Forecasting Works
BigCommerce inventory forecasting uses the following data points to predict future sales and inventory needs:
Historical Sales Data
BigCommerce inventory forecasting uses your past sales data to analyze sales trends, seasonal fluctuations, and other patterns. The more data you have, the more accurate the forecast will be. If your business is new, it might take some time to gather enough data before the forecasting feature becomes effective.
Current Inventory Levels
BigCommerce inventory forecasting takes into account the current inventory levels of each product. This data helps predict when to reorder each product to avoid stockouts or overstocked items.
BigCommerce inventory forecasting is sensitive to seasonal trends and adapts its predictions accordingly. As the holiday shopping season approaches, for example, the forecasting feature will adjust its predictions to reflect this trend.
BigCommerce inventory forecasting also takes industry-wide trends into account. This includes trends related to the products you sell, such as popularity, demand, and market saturation.
BigCommerce inventory forecasting also considers lead time, which is the amount of time it takes for your supplier to deliver a product once you place an order. This data helps ensure that you order products early enough to avoid stockouts during peak selling times.
Benefits of BigCommerce Inventory Forecasting
BigCommerce inventory forecasting provides businesses with several benefits, including:
Accurate Sales Predictions
With BigCommerce inventory forecasting, inventory managers can make informed decisions about which products to stock, how much inventory they need, and when to reorder. Accurate sales predictions help businesses avoid stockouts or holding outdated and slow-selling products.
Reduced Inventory Costs
Overstocking can lead to higher inventory holding costs, and unsold inventory can become difficult to liquidate. With BigCommerce’s inventory forecasting, businesses can minimize inventory costs by ordering the right amount of inventory at the right time.
By having the right products in stock at the right time, businesses can increase sales by meeting customers’ demands and avoiding stockouts. Additionally, BigCommerce inventory forecasting can help identify popular products, allowing businesses to capitalize on emerging trends.
Improved Customer Experience
BigCommerce inventory forecasting can help businesses avoid stockouts, ensuring that customers can receive their desired products on time. This can improve the customer experience, resulting in increased customer loyalty and repeat business.
BigCommerce inventory forecasting is a powerful tool that can help eCommerce businesses make informed decisions about inventory management, which can lead to increased sales and customer satisfaction while minimizing inventory holding costs. By taking into account historical sales data, current inventory levels, seasonal trends, industry-wide trends, and lead time, this feature accurately predicts sales trends and inventory needs with a high degree of accuracy. eCommerce businesses can benefit greatly from incorporating BigCommerce inventory forecasting into their inventory management strategy.