A Must-Read for E-commerce Businesses! How to Use Demand Forecasting AI to Prevent "Stockouts" and "Excess Inventory" During Sale Periods
The "Two Failures" Often Encountered During Sale Periods In the operation of e-commerce sites and online shops, sale events (such as Rakuten Super SALE, Amazon Black Friday, and in-house e-commerce mega-discounts) are opportunities to significantly increase sales. However, at the same time, the following failures tend to occur. 1. Underestimating demand leading to "stockouts": Selling out at an early stage and missing out on sales that could have been captured. 2. Overestimating demand leading to "excess inventory": Being left with a large amount of unsold stock after the sale ends, putting pressure on cash flow. Especially in apparel, seasonal goods, and daily necessities e-commerce, making accurate ordering forecasts is directly linked to profit margins. Visualizing "Demand Growth Rates" from Past Order Data It is difficult to predict the rapid sales spikes during sale periods using…