The financial health of your online store depends on a series of factors and sales forecasting is one of the most important.
Sales forecasting is an estimate or assumption to understand how many products the store expects to sell in a future period of time, such as a month, quarter or year. It is also very useful for thinking about special dates, such as Christmas and Black Friday.
In addition to understanding how cash flow may behave, sales forecasting also helps to plan resources, inventory, new investments and periods with peak seasonal sales.
Learn everything about the subject with us!
What is sales forecasting?
How important is sales forecasting for e-commerce?
How do I make sales forecasts for my online store?
6 sales forecasting methods you should know
List of free tools for sales forecasting
How do I set realistic sales goals based on my forecasts?
4 common mistakes when calculating sales forecasts in e-commerce
What is sales forecasting?
Sales forecasting is exactly what the name suggests: an estimate of how much the store should/can sell in the future .
One of the greatest references in Marketing, author Philip Kotler defines sales forecasting as “an estimate of future sales, usually in units or monetary revenue”.
To understand what the future results in e-commerce sales may be , you need to have the store's own history as a basis, but you should also keep an eye on market fluctuations, consumption trends and e-commerce commemorative dates .
What is the difference between sales forecasting and demand forecasting?
Another concept that is very similar to sales forecasting, but has a different application, is demand forecasting .
While sales forecasting is more internal and focuses on the company's sales estimates, the second case considers a broader view of the market.
In other words, demand forecasting analyzes the need for a specific product or set of products for the market in the future.
For example:
Let’s say your store specializes in baby products. Your sales forecast predicts that your store will see a 30% increase in sales in the second quarter of the year due to Mother’s Day.
While the demand forecast estimates that your store will need to purchase 15% more stock of personalized products for the date, because, historically, the store sells more of these products on the commemorative date.
How important is sales forecasting for e-commerce?
Making a sales forecast for your online store helps you understand different aspects of your business, from inventory control to decision-making when creating a promotional campaign for e-commerce dates, such as Black Friday.
Let's look at each of the following points:
Stock planning : allows e-commerce to maintain the appropriate indonesia phone number data stock balance to meet market demands, preventing excess products in the store or shortages for the end customer.
Resource allocation : helps you understand the ideal allocation of resources such as people, logistics , investment in paid media (if it fits into the strategy) and other points to meet the needs of the sales operation.
Marketing strategy : allows the company to plan and execute marketing campaigns strategically, optimizing the amounts invested in advertising and promotions, making campaigns more assertive.
Customer Experience : Ensures that orders are fulfilled with sufficient resources, resulting in positive customer experiences and loyalty.
Profit Maximization : Helps optimize pricing and margins, balancing promotions and profitability, and minimizing financial risks such as excessive expenses or unsold inventory.
Strategic decision-making : provides important information so that management can be assertive when making strategic decisions for the future of the business.
With all this information, you have the tools to prepare your store for the main commercial holidays, among other times of the year.
Guaranteed benefits of a good sales forecast
Creating a good sales forecasting system brings direct benefits to store management and efficiency.
You improve store management
Understanding what the future sales scenario will be like helps you plan product production. In addition, it is possible to establish realistic sales goals, anticipate market demands and prepare your online store for possible increases in flow.
You gain inventory efficiency
By forecasting your online store's sales, you can anticipate stock shortages or excesses , ensuring that the right products are available when customers need them. This helps reduce storage costs and losses.
Read also: How to manage inventory
You have control over your financial planning
Creating a good sales forecast makes planning your online store's finances more accurate. This ensures that you have the capital available to meet your production, marketing, and personnel needs.
You adapt to market changes
Evaluating future scenarios also enables you to identify trends and changes in demand for your e-commerce, allowing for quick adjustments to your business strategy.