An online retail forecast is an evaluation — using consumer and sales data — of future sales predictions for the ecommerce retail sector.
In retail, ecommerce businesses often rely on consumer, marketing, and sales data to make informed decisions about their future efforts. An online retail forecast is necessary for this process, as it provides projections of critical elements of future retail trends, including consumer product demand, sales predictions, inventory stock levels, and more.
An online retail forecast requires consistent, accurate data, including past sales performance metrics, website analytics, market analyses, and competitive data.
With this information, brands can adjust their systems to take advantage of upcoming consumer interest and better prepare for financial ups and downs. If a brand uses data to identify that sales on certain products increased by 10% during the past three summer seasons, for example, they can predict that they’ll see the same boost this year. The brand can then stock inventory properly, promote product bundles to drive upsells, and tailor marketing materials to certain products.