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. The prior approach lacked balance between year-round core products and seasonal items, resulting in excess inventory, pCOGS inefficiencies, and missed growth. Channel Key partnered with Life is Good to restructure assortment, strengthen forecasting, and align inventory to true demand.
 

APPROACH

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• Rebalance the Catalog to an 85/15 Core-Seasonal Mix
  Created consistency across more than 1,000 SKUs while still enabling strategic seasonal launches, replacing an imbalanced year-round approach.
   

• Introduce a Three-Year Lifecycle Forecasting Framework
  Managed newness and hold accuracy within 10% variance to actuals, giving the business a structured way to plan beyond a single season. 
   

• Align Forecasting with True Customer Demand
  Reduced inventory waste and improved pCOGS-to-invoice ratios by tying forecasts to actual demand rather than historical assumptions.

CONCLUSION

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Channel Key's forecasting and assortment restructuring helped Life is Good improve both efficiency and profitability while sustaining strong growth. Year-to-date invoice growth reached 51.7%, with pCOGS growth of 60.8%. Forecast accuracy stayed within 10% variance to actuals, enabling tighter inventory control, more reliable replenishment, and stronger, more predictable purchase orders from Amazon.