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Predictive Analytics for Pharmaceutical E-Commerce: Leveraging Grey Forecasting and Time Series Models to Optimize Vitamin Sales Strategies on TMall

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DOI: 10.23977/socmhm.2025.060114 | Downloads: 7 | Views: 323

Author(s)

Junxiang Wang 1, Lingyu Dai 2, Wenxiao Xie 1

Affiliation(s)

1 School of Economics, Beijing Technology and Business University, Beijing, China
2 College of Economics and Management, Northeast Agricultural University, Harbin, Heilongjiang Province, China

Corresponding Author

Junxiang Wang

ABSTRACT

The rapid expansion of China’s pharmaceutical e-commerce sector, accelerated by post-pandemic digitalization and supportive policies, presents critical operational challenges for market players. This study leverages 2020–2021 transactional data from TMall’s vitamin supplement market to develop actionable strategies for optimizing online pharmacy operations. Through Python and Excel-driven preprocessing—standardizing discount rates (null→1) and calculating sales (price × quantity × discount)—we analysed 1.8 million records spanning 26 stores, 9,697 products, and 465 brands. Our analysis revealed significant market concentration: Ali Health Pharmacy dominated 45% of total sales, with immune-boosting products driving peak revenue during seasonal campaigns. The top 10 brands (led by elevit and FANCL) collectively captured 65% of vitamin sales, primarily targeting women, children, and seniors through wellness-positioned supplements. For forecasting, a dual-model approach was implemented. While Grey Prediction GM(1,1) projected Q1 2022 vitamin sales at ¥105.23 million, Winters' additive time series model (α=0.109, β/γ≈0) demonstrated superior accuracy (R²=0.95, MAPE=5.3%), refining the estimate to ¥87.75 million by capturing subtle cyclical patterns overlooked by conventional methods. These findings inform three evidence-based strategies: First, forging partnerships with integrated health platforms (e.g., Ali Health) enhances consumer trust and regulatory navigation. Second, prioritizing high-margin supplements like prenatal vitamins and calcium boosters aligns with demographic-driven demand. Third, AI-powered dynamic pricing—such as bundled discounts during low-season months (June/October)—can smooth revenue volatility. The 18.7% forecast error reduction achieved through time-series modeling underscores its value for inventory planning in volatile pharmaceutical markets, particularly as telehealth integration reshapes global healthcare delivery.

KEYWORDS

Pharmaceutical E-Commerce, Sales Forecasting, Inventory Optimization, Time Series Analysis, Health Supplement Market

CITE THIS PAPER

Junxiang Wang, Lingyu Dai, Wenxiao Xie, Predictive Analytics for Pharmaceutical E-Commerce: Leveraging Grey Forecasting and Time Series Models to Optimize Vitamin Sales Strategies on TMall. Social Medicine and Health Management (2025) Vol. 6: 103-114. DOI: http://dx.doi.org/10.23977/socmhm.2025.060114.

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