Inventory Forecasting tells you what to reorder, how much, and when. It looks at every product and variant, forecasts demand from real sales and live shopper activity, and recommends a purchase date and quantity. The goal is to keep you from losing sales to stockouts without tying up cash in stock that won't move.
Why does inventory forecasting matter?
Every inventory decision is a tradeoff. Order too little and your bestsellers sell out, taking revenue and ad spend with them. Order too much and cash that could fund growth sits on a shelf. Most brands manage this in a spreadsheet that's out of date as soon as it's saved.
The Inventory Forecasting Peak replaces that spreadsheet with a live dashboard. It updates continuously as sales and demand signals come in, so your reorder plan always reflects what's happening right now.
Where do you find Inventory Forecasting?
Inventory Forecasting is a default Peak (a dashboard in ProfitPeak), so it's ready in your Peaks workspace from day one. Open it and you'll see:
A date picker at the top, which controls your month-to-date sales target tracking
A detailed table below, by variant or product group, showing days or weeks of cover, current stock, true sales, and estimated sales volume, plus a recommended purchase date and quantity for each item
Use filters to focus on specific products, product groups, or anything with a particular tag.
How does ProfitPeak forecast demand?
The forecast starts with each product's and variant's historical sales pace, then factors in 90-day trends, seasonal patterns, and your store's overall growth. On top of that, it uses live demand signals like ad clicks and add-to-cart activity, so the forecast responds to interest before it shows up as orders.
What is True Rate of Sales?
True Rate of Sales measures how fast an item sells only during the days it was actually in stock.
This matters more than it sounds. Picture a coffee shop that sells out of croissants by 9am every day. If you averaged its croissant sales across the whole day, croissants would look like a slow item, when really customers would buy far more if there were more to sell. True Rate of Sales avoids that mistake. A product that sold out early is treated as the fast mover it really is, so past stockouts don't quietly shrink your future order recommendations.
What do the inventory health statuses mean?
Every item gets a status based on how its stock compares to your supplier lead time (how long a new order takes to arrive).
Status | What it means |
Stock Out | No units on hand. You're losing sales every day. |
At Risk | Stock will run out before a new order can arrive. |
Healthy | Stock comfortably covers demand until your next shipment lands. |
Excess | More stock than you need, either above your excess threshold or with almost no forecast sales. |
Which metrics should you watch?
Days of Cover is how many days your current stock will last at today's sales pace. If this number is lower than your supplier lead time, you need to act now.
To Buy Units and Cost is the recommended reorder quantity and the cash it will take. It already accounts for supplier minimum order quantities (MOQs).
Forecast Revenue Loss is the revenue you're projected to lose if an item sells out before new stock arrives. Use it to decide which purchase orders to place first.
ABC Classification ranks products by how much revenue they bring in. Class A items drive roughly the top 70% of revenue, Class B the next 20%, and Class C and D make up the long tail and slow movers.
What should you keep in mind when using the forecast?
Pause ads on items about to sell out. When a Class A product moves to At Risk or Stock Out, pull back paid campaigns pointing to it until new stock is confirmed. Otherwise you're paying for clicks you can't convert.
Keep supplier lead times accurate. The forecast is only as good as the lead times you enter. If they're too short, items can still sell out even when you followed the reorder recommendation.
Plan extra stock for promotions. The forecast reflects your normal sales pace and seasonal patterns. Planned sales, flash promotions, and big email sends need extra stock on top of the recommendation.
Check at the variant level. A product can look healthy overall while its best-selling sizes or colors are already gone. Checking individual variants helps you avoid a broken size run.
What can you use Inventory Forecasting for?
Planning purchase orders: Rank supplier POs by urgency, lead time, and forecast revenue loss.
Preventing stockouts: Spot fast movers nearing their reorder point before they run out.
Freeing up cash: Find slow-moving Class C and D stock to bundle, mark down, or clear.
Moving stock between locations: Cover a regional shortage with surplus from another warehouse instead of placing a new order.
What should you ask Sherpa about inventory?
"Which products will be At Risk or Stock Out in the next 14 days?"
"Show me my Class A items with less than [X] days of cover."
"What's my total To Buy cost this week, and which POs should I prioritize?"
"Which Class C and D items have excess stock I could mark down?"

