Leveraging ForecxtIQ AI for product classification on a Shopify platform offers tangible benefits in optimizing business operations and maximizing profitability.
By utilizing factors such as lead time, product revenue, average purchase cost, and average sale cost, merchants can efficiently categorize their inventory into ABC classifications. This classification system enables them to prioritize their attention and resources on the most critical products.
For instance, high-value items with significant revenue or fast turnover can be identified as ‘A’ category products, prompting merchants to focus on ensuring their availability and visibility. On the other hand, lower-performing products may be categorized as ‘C’ and either optimized, discounted, or phased out to allocate resources effectively.
