Last week Amazon announced the launching of its new Demand Forecast Tool in Seller Central which provides sellers with estimates of their product's future demand for a period of up to 40 weeks. By using machine learning algorithms and historical sales data -previous orders, active deals, and any seasonal influences- this new tool builds a future demand estimate unique to each product.
The Two Prediction Levels The Demand Forecast Tool Offers
- Mean: This represents the expected weekly customer demand and is displayed as a green line in the tool.
- Optimistic: This is represented as a dotted line, and shows the optimistic forecast. It indicates that the demand for a product is expected to be at or below this level 90% of the time.
By default, the tool displays the mean prediction level for the forecast period, and sellers can view the estimated demand for their product for up to 40 weeks.
It also includes two additional lines that provide other useful information:
- Gray line: This line represents the ordered units of a product, and is displayed up to the trailing 52 weeks if the product has been sold via Fulfillment by Amazon for that long.
- Yellow line: This compares the number of ordered units from the previous year and is only displayed if the seller has been selling via Fulfillment by Amazon for at least two years.
How Does the New Demand Forecast Tool Allow Amazon Sellers to Stay Ahead of the Competition?
Provides accurate forecasts based on historical data and trends
This tool uses historical data and trends to generate accurate predictions of your product’s future sales, helping sellers anticipate demand for their products and plan inventory accordingly, reducing the risk of stockouts and overstocking.
Make informed decisions
The Demand Forecast tool gives insights such as expected revenue, inventory recommendations, and forecast accuracy, which help sellers make informed decisions about pricing, advertising, and inventory management.
Stay competitive
With accurate demand forecasting, sellers can stay ahead of the competition by anticipating market trends and adjusting their strategies accordingly.
Final Thoughts
In conclusion, Amazon Seller Central's new demand forecast tool is a game-changer for sellers. With accurate forecasts, insightful data, and easy customization, this tool will help sellers make informed decisions and stay ahead of the competition. Try it out today and see how it can benefit your Amazon business!