Ecommerce is still a complicated and intricate business, even in this day and age. E-tailers must not only offer the best products in the right places at the right price to be successful, but also adapt to market changes. Knowing what customers want and when is vital to success in the global ecommerce market. Ecommerce companies used to plan inventory and warehousing according to “seasonal peak” dates. These were holidays such as Thanksgiving or Christmas. Ecommerce businesses could look at past trends to determine what stock type shifted when and how that would impact their business. These peaks are changing, and many seasonal sales peaks, such as those for spring, are getting longer. Many fashion e-tailers are launching multiple collections per year. This makes it harder to predict future demand for certain products. What can online retailers and e-tailers do to predict what consumers are looking for in a week or month?
Forecasting is crucial. Forecasting is a process that predicts future demand by using historical sales data. This can be applied to both new and older products. Ecommerce businesses can identify patterns and trends in order to predict future sales. They can then use their order management system to track sales data. Some online businesses categorize their forecast models at a macro-level. This is the most general level. Others prefer micro-level forecasting. Fashion companies may choose to invest in short-term forecasting depending on their industry. This is because the product offerings are seasonal and change according to the season. Ecommerce companies could face many problems without the right model of forecasting. These include stock and inventory issues, shortages of warehouse staff, and returns issues.
Forecasting not only helps e-tailers deliver the products they desire, but also keeps them ahead of their competitors. E-tailers can ensure that hot-ticket products sell through by increasing inventory before stock levels drop during sales, for example. Customers are happy and they won’t switch to other brands for the same products. Ecommerce businesses can reduce financial risk by accurately forecasting their future sales and make better financial decisions. If sales data from the past shows that new products may take longer to sell in higher volumes than expected, e-tailers might choose to purchase less stock to launch a new product. Ecommerce companies can use forecasting to help them price their products. Historical data and market research can provide insight into which products are most in demand right now and what the average customer would pay for them. Ecommerce businesses can benefit greatly from forecasting inventory and warehousing costs. Modexpress, a global fashion fulfilment expert, wants to assist its clients and merchants in their forecasting models so that they can maintain the flexibility and agility necessary to satisfy their customers.
Modexpress provides accurate inventory management solutions that give real-time insight into product inventories. This can be used to help e-tailers increase and decrease stock levels according to their needs. Modexpress’s management information systems are state-of the-art and provide real-time stock status updates, insights into turnover rates, and percentages of return. E-tailers have more flexibility to react quickly to market changes. Modexpress is keen to maximize space and operates from multiple warehouses located in strategic locations. This allows Modexpress to reduce “time to market” for its products while making the most of its space. Modexpress can also help with expectation management and backlog management during busy periods as well as returns. Modexpress handles returns with care. They check to make sure they are in good condition, undamaged, and complete before processing them. Modexpress’s CCO Nor Coorlander says that fast and reliable returns handling can be just as important as outbound shipping. Modexpress serves all channels, from ecommerce to outlets and stores from its warehouses. This allows Modexpress to keep stock management costs low while allowing for maximum flexibility.
Modexpress’s years of expertise and experience are not the only thing that sets it apart. It is also committed to supporting its employees. The logistics company ensures that its warehouses are stocked with the best staff, and works with both internal and external agencies to find the best people. The firm makes sure that all staff are trained properly and keep up-to-date with all safety and health requirements, even during busy seasons. Coorlander adds that staff training and upscaling is essential to meet seasonal challenges such as Black Week. “Forecasting based on historical data has always contained some risk elements, but when combined with our solutions, e-tailers will be successful.”
