Shopify demand forecasting, what is key?
The first and most important element for any Shopify demand forecasting is to accurately predict how much of each inventory item you will sell. That could be from each location if you run are running a website with multiple locations. Or to be more accurate, you need a prediction of how much you could sell if you had each inventory item in stock when a customer wants to buy it.
Demand forecasting for Shopify can be an easy concept to understand. However, many practical details can make it hard to do well no matter how good Shopify is. Here are several factors that complicate the process of demand forecasting for Shopify:
- The number of forecasts you must generate
- Lumpy or erratic demand for your inventory
- Trending demand
- Promotional demand
- Seasonal or cyclical demand
- Forecasting Demand for a new inventory item
The process of generating demand forecasts for Shopify is an exercise in statistics and probability, hence why we use computers and machine learning. For any Shopify business, big data and predictive analytics play a growing part in providing a precise and granular look at previous and future customer and inventory demand. While the assessment of this information requires complex and advanced algorithms, back to the computers and machine learning, probability still plays a substantial part in generating a demand forecast for Shopify. So even with a very detailed look at the causes for customers to purchase goods, there is still a measure of inaccuracy that must taken into account.
So forecasting for Shopify if not easy, that is why we built Intuendi. Our goal is that you can focus on what matters most and that is growing your Shopify business. Let Intuendi do the hard work in forecasting your Shopify future demand, identifying items that are under-performing and telling what to what buy!