Since consumer buying behavior is non-specific, it is nearly impossible to project. While sales is a very useful technique for eCommerce businesses, it is not an exact science. Despite the progress of technology, statistics, and artificial intelligence, is still not as accurate as we may like it to be.
eCommerce businesses face new challenges challenges, but luckily there are key solutions. Read on to learn more about the biggest eCommerce demand challenges and how to overcome them.
What is demand ?
is the process that you use to determine future demand. The goal of is to help you prepare for more than just your current period. For example, restaurants would use demand to place orders for ingredients for the next quarter. Instead of just ordering standardized amounts of different foods, the restaurant would use demand to try to order what they need for different categories.
Proper demand helps you prepare and improve your bottom line. The key advantages of include:
- Improve your supply chain.
- Plan better marketing strategy based on the different cycles of your sales.
- Create a more accurate, flexible budget.
- Determine your staffing needs at different points in the year based on fluctuating demand.
- Track overall performance by comparing expected demand to the actual sales.
While is incredibly important and beneficial, it is not free of challenges. Some obstacles that eCommerce businesses face when it comes to include:
- Emphasis on historical data. relies on what happened in the past. While past activity is a good benchmark for future sales, it is not the only factor. Unfortunately, strategies often fail to consider the many other factors that will affect your demand in the future. This problem is exacerbated for eCommerce stores, where you need SKU-level data to forecast online sales.
- Fragmented business actions. eCommerce business implements several initiatives that may impact demand, and all of these different business actions are not always visible to every member of the company. Short term cycles that include new products, sales, discounts, advertising, and social media marketing can impact demand immensely, but they are not considered in traditional plans.
- It is very hard to forecast sales of items at the SKU level, even though this type of would provide the most accurate and useful information. Online shopping behavior relies on numerous factors that cannot necessarily be calculated scientifically.
- The eCommerce market is rapidly growing and changing. Standard relies on monthly processes, but to keep up with the digital world, you must track stock-flow planning weekly and with two to four-week cycles.
These challenges make it very difficult for eCommerce businesses to forecast demand. Selling on multiple platforms only exacerbates the complexity of the issue. The key to proper for eCommerce is to closely monitor online sales.
The Solution to eCommerce
Fortunately, there are a few ways to address the major challenges associated with . Your eCommerce business must address both the process and the technology associated with sales predictions.
The easiest way to improve your is with the best tool available, Listing Mirror. Listing Mirror understands both the importance and complexity of demand , and our #1 multichannel software makes the process much simpler and more effective.
In addition to , order fulfillment, and inventory syncing, we offer warehouse management. With our helpful Inventory feature, you can track previous sales data and trends to determine how much inventory you should order from vendors. Our powerful software ensures more accurate forecasts, so you can avoid being under or overstocked. Use our incredible software to simplify daily operations, including demand . To learn more about our feature, try it for yourself. Sign up today to try our 14-day risk-free trial!