Amazon’s ML-Powered Demand Forecasting

Published: May 2025 • Category: Insights

Smarter Fulfillment Through AI

Amazon applies advanced machine learning models to forecast product demand with high precision. These models account for variables like seasonality, sales velocity, shipping times, customer region, and even weather patterns.

Why It Matters

Demand forecasting allows Amazon to move inventory closer to where it’s needed before customers place orders. This enables faster delivery, lower logistics costs, and fewer stockouts during peak seasons.

The Results

By leveraging AI across its fulfillment network, Amazon has increased delivery speed and inventory accuracy while reducing last-mile inefficiencies. These systems support millions of SKUs across thousands of locations globally.

Source: Amazon Newsroom