Velocity, Forecasting & Replenishment is a set of metrics and reports that identify how quickly your products sell. With that information, ShippingEasy recommends when and in what quantity to restock each product. You save money by maintaining lean inventory without stockouts!
What is Velocity?
Sales Velocity is the rate your products are selling. Velocity is the number of a product’s unit sales divided by the number of days in a sales history period. Sales velocity identifies your fastest and slowest selling products. It helps you decide when and how much to reorder. It can also help you prioritize your marketing budget.
ShippingEasy calculates sales velocity for you! Find the velocity of your active products in the Sales Velocity Report. Learn more.
What is Forecasting & Replenishment?
Demand Forecasting uses a product's sales velocity to estimate future sales. ShippingEasy makes a replenishment recommendation based on the estimated sales. The recommendation also takes into account available and awaiting stock. Use the replenishment recommendation when you reorder from your supplier.
ShippingEasy does the calculating for you! Find the forecasting and replenishment data for your active products in the Forecasting & Replenishment Report. Learn more.
I'm new to ShippingEasy, can I use these reports?
Yes! ShippingEasy uses your sales data from up to the last 90 days. ShippingEasy will import unit sales data for the last 90 days when you add your store to ShippingEasy. Historical sales data is only used for calculating velocity - the individual orders are not displayed in ShippingEasy.
NOTE: importing 90 days of sales data is supported for the following store platforms: Amazon, Bigcommerce, Bonanza, eBay, Ecwid, Magento v1.x, Magento v2.x, Paypal, Reverb, Shopify, Squarespace, Walmart, Wish, WooCommerce, and 3dcart.
Where can I find Velocity, Forecasting & Replenishment results in my account?
Velocity, Forecasting & Replenishment information is available in four areas.
- Inventory Reports
- Product Catalog
- Product Details
- Create Purchase Order
NOTE: the calculations displayed on these pages assume a seven day Sales History and Forecast Period. To define these time periods, set a Default Sales History and Default Forecast Period on the Inventory Settings page. Learn more.
Sorting and filtering of products by velocity can only be done once a report is downloaded. The items are listed in alphabetical order by SKU on the reports page.
Velocity and DTR (Days to Reorder) are available in the Product Catalog. Learn how to arrange your Product Catalog columns to see these columns.
The detail page for each product displays the Velocity, Stockout, and DTR (Days to Reorder) columns. For single variant products, these columns are on the Stock tab. For variant group products, these columns are in the Product Variants table. For bundled products, these columns are in the Stock tab of the bundle SKU and in the Bundled Products table for each of the bundled SKUs.
Create Purchase Order
Both DTR (Days to Reorder) and QTB (Quantity to Buy) are on the Create Purchase Order page to help you make replenishment decisions. DTR is the number of days until you need to reorder to avoid stockout. If DTR is greater than 1, you are ahead of the game! QTB is the recommended quantity of the SKU to reorder to meet demand through the reorder period.
What do each of the Velocity, Forecasting & Replenishment terms mean?
- Units Sold: the number of units of that SKU that sold in the sales history period
- Velocity: the rate at which the product sold, in units per day
Forecasting & Replenishment
- Sales History: the historical time period used to determine the number of sales
- Forecast Period: the time period used to forecast sales, may also match your reorder frequency
- Available stock: the current Available stock for this SKU
- Awaiting stock: the current Awaiting stock (based on open POs) for this SKU
- Stockout: the number of days until Available stock reaches zero
- Lead Time: the number of days between when you place a purchase order and receive the ordered product
- Reorder Period: the Forecast Period plus lead time
- Lead Demand: projected demand during the lead time
- Projected Available: remaining Available stock, taking into account Awaiting stock and Projected Sales
- Projected Sales: projected sales during the reorder period
- DTR (Days to Reorder): the number of days until a PO must be placed to avoid stockout
- QTB (Quantity to Buy): the recommended quantity to buy to have enough inventory to fulfill all orders through the reorder period
How often do the Velocity, Forecasting & Replenishment numbers update?
Velocity, Forecasting and Replenishment metrics are calculated nightly to account for sales and changes to orders from the day. You'll see updated numbers in your account and on the Sales Velocity and Forecasting & Replenishment Reports each morning.
What is In-stock Expectation %?
In-stock Expectation is the threshold you set for the probability that your products will be in stock. ShippingEasy uses this percentage when making a replenishment recommendation. Select a lower percentage if you want to avoid the possibility of overstock or to reduce spending on inventory.
In-stock Expectation probability can be set to Highest (99%), Higher (95%), or High (90%). Learn how to set In-stock Expectation probability on the Inventory Settings page.
How does Velocity, Forecasting & Replenishment account for my FBA shipments & stock?
On the Sales Velocity report, the Sales and Velocity numbers will include FBA-originated shipments if you import your FBA shipments to ShippingEasy. Learn more about importing FBA shipments.
On the Forecasting & Replenishment report, the Stockout, Projected Available, DTR, and QTB values will take your FBA inventory into account if you import FBA stock levels. Learn more about importing FBA stock levels.
For FBA forecasting, we recommend using the Store filter on the Forecasting & Replenishment report to display data from your Amazon store only. This configuration will use your Amazon sales, including FBA-originated shipments, to determine the Velocity which is then used to forecast future sales. Using a simple estimation of the percentage of Amazon sales that are FBA-originated, you can calculate the proportion of the Projected Sales and QTB to designate to FBA.
What are the "Velocity" and "DTR" columns in my Product Catalog?
Velocity is the units per day the product is selling. DTR is the number of days (based on current velocity) until you need to reorder inventory to avoid selling out.
ShippingEasy assumes a seven day sales history to calculate velocity. ShippingEasy assumes a seven day forecast period when calculating DTR. Learn how to change the Default Sales History and Default Forecast Period on the Inventory Settings page.
Why are "Stockout" and "DTR" blank?
ShippingEasy can only calculate Stockout and DTR if a product has a positive sales velocity. This is because both rely on velocity to determine how many days of inventory remain and number of days until you need to reorder inventory.
If velocity is zero, Stockout and DTR will display a blank or a dash “-”.
- On the Forecasting & Replenishment Report, the cell will be blank.
- On the Product Details page of the SKU, the column will display a dash “-”.
- On the Create Purchase Order page, the column will display a dash “-”.
How to: Set up Velocity, Forecasting & Replenishment
What data is included in the Inventory Report - Sales Velocity report?
What data is included in the Inventory Report - Forecasting & Replenishment Report?
Video: Velocity & Forecasting