As an eCommerce business owner you need to plan budgets and submit purchase orders to vendors long before products are ready to ship. Advanced planning ensures that retailers have merchandise assortments targeted to their specifics customers. When holiday merchandise appears in October, it can spur consumer demand that picks up steam in November and December.
Accurate seasonal planning leads to improved sales, higher customer satisfaction levels, less surplus stock at all levels of the supply chain, lower risk of running out of high-demand stock and fewer markdowns. Long-range planning is tied to increased profitability.
eCommerce sites navigate seasonal cycles and improve their bottom line through a process known as collaborative planning, forecasting and replenishment (CPFR). Accurate forecasting generates initial preseason merchandise plans based on various trends, demographics, customer profiles, econometrics, etc. Forecasting also helps generate sophisticated in-season plans based on actual versus plan results at a detailed level.
For the holiday shopping season, retailers must have policies in place for price-matching, rain-checks, special orders and returns.
