eCommerce Inventory Forecasting for the Holiday Season
The holidays are right around the corner, and now is the perfect opportunity to look at inventory forecasting for the holidays and throughout Q4. Inventory forecasting is all about responding to the increased demand we often see during the holiday season, and it can be a delicate balance. On one hand, you can end up bringing in too much inventory and having capital tied up. On the other hand, you do not have enough stock and fail to deliver the product to your consumers on time. Here are benefits good inventory forecasting can bring to your business:
When customers visit your website or your store, you want to have everything they may be looking for in stock and ready to go. Particularly around the holiday season, it’s unlikely that customers will be willing to wait around for a product to be replenished. By conducting inventory forecasting, taking into consideration previous trends from previous years, you’ll be able to significantly reduce your risk of stockout and be prepared when customers show up.
Reduce Inventory Costs
Inventory forecasting allows you to get an understanding of how much of a product you’ll need in order to fulfill consumer demand. As a result, you’ll be less likely to spend unnecessary amounts of your budget on storing inventory in the warehouse.
The Right Pricing Strategy is Crucial
When pricing items, it’s incredibly helpful to have an understanding of the demand for that product. When you do, you’ll be able to adjust pricing to match the demand appropriately. That means selling more of the less in-demand products with lower prices and increasing the price of your most popular products.
For help with inventory forecasting this holiday season and beyond, reach out to us.
Way Day 2022 Follow-Up
While average transaction values may still be on the rise, Way Day 2022 failed to exceed consumer spending for Way Day 2020 and Way Day 2021, dropping 13% compared to 2021 and 4% compared to 2020. This drop was likely in part affected by supply chain constraints, declining consumer demand, some shift back to retail, and inflation.
Average transaction values throughout 2022 have grown, however, with the average transaction in April at $317, a 14% increase year-over-year and a 28% increase compared to April 2020. While the shopping event may not have surpassed the last two years, it did show a general increase in traffic compared to the weeks before the event, rising 4% compared to the previous week and 19% bigger than the week of Way Day 2021.
To gain more expert insights into Way Day 2022 and how it affects your business, reach out.
Mobile Marketing Tips
Tailor your mobile marketing strategy to your target audience for a seamless user experience from start to finish.
Who is Your Target Audience?
Who your target audience is will be the main factor in how you set up your mobile strategy. Are they tech-savvy users who have used a mobile device most of their life, or are they late adopters? No matter who your audience is, they will likely seek a clean and easy-to-navigate experience. That being said, depending on who will be receiving your content, it’s vital to create an experience that makes sense for that audience specifically.
Keep Your Marketing Relevant
Remain relevant and on-trend, particularly when it comes to mobile marketing. With advancements, updates, and upgrades happening on a seemingly daily basis, ensuring that your mobile app and website are as up-to-date as possible and utilizing the latest technology is integral to providing a seamless user experience. Be sure to keep an eye out for emerging trends, tools, and more that can help you tailor your mobile campaigns for your audience.
Ask for Feedback
No one will provide more honest or helpful feedback than the consumers who are on the other end of your mobile marketing strategy. Reach out to your audience and request feedback on their experience, whether through package inserts when products are delivered, a friendly email after an order has been confirmed, or simply as a pop-up on your mobile website.
Chat with us to learn more about improving your mobile marketing strategy.
Freight Costs Expected to Drop
Cleveland Research Company (CRC) released a freight update, indicating large drops in both truckload (TL) and ocean freight are expected in 2023, with shippers seeing the potential of 10-15% in total savings, driven by a 20-25% decrease in ocean costs and a 10-15% decrease in Truckload costs. Parcel carriers are also expected to be more flexible as we enter the peak season.
It’s vital that shippers look into cost-savings opportunities as more transport capacity becomes available.
Insights from CRC’s findings:
- Demand for transportation is slowing down, with inventory becoming more normalized over the last two months.
- TL market has seen the most immediate and largest opportunities for price and cost saving, with spots declining 26% since January. It’s likely that this trend will continue into 2023.
- Research has indicated that overall ocean costs will be deflationary come 2023.
- Other modes (not truckload or ocean) will likely still see inflation in 2023, however, the growth rate is expected to slow.
For more information on freight costs and how Highlands can help you find cost-saving solutions, reach out to us.
Check Out Our Recent Webinar:
Live Shopping: Key Learnings From China
In this video, Gordon Christiansen, Partner at Highlands, interviews Andreas Goller, formerly of Oddity Asia, offering insights and recommendations through his, and his company’s experiences, with Live Shopping in China.