Forecasting and Assortment Strategy Drives Efficiency and Growth

​OVERVIEW​

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Life is Good, a premium lifestyle apparel brand with more than 1,000 SKUs, faced challenges managing its Amazon assortment and forecasting models. The brand’s previous approach lacked balance between year-round core products and seasonal items, resulting in excess inventory, inefficiencies in pCOGS, and missed growth opportunities. Channel Key partnered with Life is Good to restructure its assortment strategy, strengthen forecasting accuracy, and align inventory planning to true customer demand—building a more efficient and scalable Amazon business.
 

APPROACH

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• Refined Assortment Strategy
  Rebalanced the catalog to an 85% core / 15% seasonal mix, creating consistency in year-round sales while enabling strategic seasonal launches around key tentpole events.  
   

• Implemented Lifecycle Forecasting Model
  Introduced a three-year forecasting framework to manage newness, improve continuity, and maintain forecasting accuracy within a 10% variance to actuals YTD.  
   

• Improved pCOGS and Inventory Efficiency
  Aligned forecasting with customer demand to reduce inventory waste and improve pCOGS-to-invoice ratios.  

CONCLUSION

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Channel Key’s forecasting and assortment restructuring helped Life is Good improve both efficiency and profitability while supporting strong growth momentum. Year-to-date invoice growth reached +51.7% (Jan–Sep 2025 vs. Jan–Sep 2024), with quarterly pCOGS growth of +39.6% in Q1, +59.1% in Q2, and +60.8% in Q3. Forecast accuracy remained within 10% variance to actuals, enabling tighter inventory control and more reliable replenishment planning. The 85/15 core-to-seasonal structure created operational discipline and improved demand alignment, resulting in stronger purchase orders from Amazon and a more predictable, profitable model.