Planning ahead

Sales forecast

What a store expects to sell in the weeks and months ahead.

Formula

Sales forecast = Same weekday a year earlier × growth

Growth being the recent weeks ÷ the same weeks a year earlier.

The short answer

A sales forecast is an estimate of what a store will sell in the weeks and months ahead, in orders and revenue. The simplest honest method starts from the store's own past: the same weekday last year, scaled by how the recent weeks compare with the same weeks a year earlier.

Forecasts come in two families. Statistical models fit a curve to the history and extend it; they can be precise, and they are hard to check, because nobody can say which past week drove which future one. The other family reuses the store's own calendar: every future day is the same weekday a year before, so a Saturday stays a Saturday, a sale season lands where it fell last year, and every figure can be traced back to orders that really happened. Forecasting sales from your own orders walks through that method step by step.

The past then needs one correction, for how the store has moved since. Comparing the last few months of orders with the same months a year earlier gives a growth rate, and a careful forecast caps it so one unusual month cannot run away with the whole year. With less than a year of history there is no season to copy, and the honest fallback is the recent pace repeated for a few months, said out loud.

A sales forecast says how busy the store will be. It cannot say whether those months are worth having, because the same revenue can arrive with very different costs; that question needs a profit forecast, the same months priced through every cost.

That is how the Forecast page in nouz works: the last 364 days of orders move forward to the same weekday, scaled by up to the last 91 days against the same days a year earlier, with the rate held between a quarter and three times. With fewer than 28 days of orders there is no forecast at all; with less than a year, the last four weeks repeat for this month and the next three, and the page says so. The help centre sets out how the forecast is built, rule by rule.

Where it lives in nouz. The Forecast page: this month and the next eleven, or the next three while the store has less than a year of orders.

Questions

Sales forecast, answered.

How do you forecast sales for an online store?
Start from the store's own past: take each day's sales from the same weekday a year earlier, then scale them by how the recent weeks compare with the same weeks a year before. With less than a year of history, repeat the recent pace for a few months and say so.
What is the difference between a sales forecast and a profit forecast?
A sales forecast says how much will sell. A profit forecast prices those sales through every cost, the goods, parcels, fees, ads and fixed costs, and says what the months will earn.
How far ahead can a small store forecast?
A year, once it has a year of history to repeat; with less, only the next few months, because there is no season yet to copy. The further ahead a month is, the wider its likely range.

See this on your own store, every morning.

nouz installs from the Shopify App Store, where the listing is in review. It builds your whole statement from your own orders, refunds and costs, every night, and imports every order your store has ever taken.

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