Are you ready to take your eCommerce business to the next level? Knowing what the future holds is essential in any business, especially when it comes to planning for sales. To ensure success and stay ahead of the competition, accurately forecasting future eCommerce sales will give you a major advantage.
By utilizing specific techniques and strategies that can help predict upcoming trends, your online store is sure to grow! In this blog post, we’ll discuss how eCommerce sales forecasting can help you be smarter about growth strategies and compete more effectively in today’s market.
What is eCommerce sales forecasting?
A sales forecast is an evaluation or prediction of future cash flow management. Simply expressed, it is the ability to forecast when money will enter and exit an organization in order to reduce risk, recognize commercial possibilities, and foresee problems.
Sales forecasting is a business management topic that is often overlooked by eCommerce organizations, although it may provide competitive advantages when implemented correctly.
When is the right time to make a sales forecast?
You must establish an annual target as well as a sales estimate. Your sales projection, on the other hand, must be broken down quarterly.
Certain industries, such as caterers and hotels, require a daily forecast. This may be used to your online business.
Your eCommerce sales forecasting should not be based on emotions, but rather on historical facts, critical KPIs, and forecasts of industry trends.
Sales forecasting methods for eCommerce
Depending on how long you’ve been running your online store and the various sources of your visitors, the three most frequent forecasting approaches are:
Sales history of competitors
Assume you have recently established your eCommerce firm and have no sales history. The greatest option is to evaluate how well your rivals are performing. You may obtain invoice data from your rivals and evaluate their invoicing information as well as their market share. You’ll have enough information to forecast how your firm will perform in the first year.
Your own sales history
Taking your sales history into account is a traditional approach of eCommerce sales forecasting. You’ll have important data to work with if your eCommerce firm has been up and operating for a few months or years.
To forecast future sales, two elements must be considered: seasonality and growth %. By researching your historical sales history and understanding seasonality, you may estimate your revenue for the coming year.
Statistical data from the channels
Statistics from multiple sales channels are available, and you may utilize the data to generate your sales estimate. For example, you may utilize email marketing sales and open rates, the number of individuals who buy from your online store via Facebook Ads or Google Ads, the volume of sales from affiliates, and so on.
Proper eCommerce sales forecasting is critical for businesses of all sizes. It allows you to track your progress, plan for the future, and make necessary adjustments along the way. If you need help getting started, our team at Atom can assist you. We have a wealth of experience in helping businesses forecast their sales and we’d be happy to put that knowledge to work for you. Contact us today to get started.