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TikTok Shop Inventory Calculator
As a premium TikTok Shop partner we're seeing the demand and success for brands continue to increase. With the success there have definitely been challenges. One of those is trying to figure out how much inventory you need on hand to support your Shop. Inventory forecasting is a little different than other channels that have a little more predictability or at least historical data. We've built this TikTok Shop inventory forecasting calculator to help brands think about all of the inputs necessary to estimate how much inventory they need. We've used historical data and averages for the assumptions on this calculator but it is only an estimate and every brand is different. There is also a large unpredictable viral factor on TikTok Shop. It is nearly impossible to predict if a video is going to go viral and drive unforeseen sales.
Calculator Assumptions
Below you can take a closer look at the assumptions this calculator is built on. Any adjustments you make on the assumptions will automatically update on the calculator above. Go ahead and try out some different scenarios.
- Free Samples - TikTok Shop is heavily based on affiliate/creator content. You'll need an active program that recruits affiliates to post content about your products. The free samples will come out of your TikTok Shop inventory so you'll need enough to cover your next batch of samples.
- Planned Advertising Spend - How much do you plan on spending on advertising in the next 30 days for the product you are running the calculator on? Using this number and an assumed ROAS will provide you with the inventory coverage number you need for the next 30 days.
- Forecasted views from branded content - How many Shoppable videos are you going to post on your owned TikTok account about a specific product in the next 30 days? How many views do you think you'll average for each video.
- Forecasted views from affiliates - How many Shoppable videos are affiliates going to post about a specific product in the next 30 days? How many views do you think you'll average for each video.
- Buffer stock - Ideally you never want your inventory on a product to hit zero. The first reason is that you'll lose sales and any Shoppable Video Links you had running will be removed from all assets they were on. The second reason is that the best affiliates consider how much inventory you have on hand before partnering with you. If you do not have a lot of inventory, affiliates will assume they cannot sell as many products as possible from your Shop which would reduce their earnings.
