Top Down

This setting computes a seasonal forecast at the Category level*, then distributes forecasted sales to the Variants. The last 2 months of sales are used to determine each variant's % contribution to the total unit sales of the category. For example, if Variant A contributed 5% of the sales units to Category Z during the last 2 months, then Variant A will receive 5% of the category's forecasted sales in upcoming months.

*Note: if a category has less than 12 months of history, forecasts are first computed at the store-wide level then distributed to the Variants.

Top Down Seasonal 

This setting computes a seasonal forecast at the Category level*, then distributes forecasted sales to the Variants. When an item has 12+ months of sales history, the same time period in prior years is used to determine each variant's % contribution to the total unit sales of the category. For items with less than 12 months of sales history, we default to the top down, non-seasonal method.

For example, if Variant A contributed 5% of the sales units to Category Z last December, then Variant A will receive 5% of the category's forecasted sales for next December.

When should you use top-down forecasting?

  • When you have enough sales data in categories (more than 12 months), the top-down forecasting can automatically account for spikes in sales. 
  • It also works for products without long sales history. Top-down forecasting uses the product category pattern to help predict future sales. 

Account-wide top-down forecasting

To enable top-down forecasting, go to Account > Settings 

> Forecasting  and Top-Down as your forecasting method.

Did this answer your question?