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Introduction to Product Assortment Optimization
In the competitive world of retailing, web scraping is a must-have approach to be two steps ahead. Based on data collected with the help of web scraping, companies may build attractive marketing campaigns, handle price optimization, manage investments, and develop a product assortment strategy.
By analyzing customers’ preferences and behavior, retailers and e-commerce business owners can develop an effective assortment optimization to connect businesses and their buyers closer. This article will explore product assortment and how to build a proper e-commerce assortment strategy.
What is Product Assortment?
The product assortment optimization process refers to deciding what types of products should be offered to buyers according to their preferences to enhance revenue. In other words, your product assortment is the mix of goods that you pick out to maximize the chances of selling. Fast-moving consumer goods mainly sell more, while others, like jewelry or electronic items, sell slower, though they provide higher profits. Therefore, a perfect product assortment strategy should be an intelligent mix of these two product types. Assortment optimization also extends to distribution channels. This term refers to the assortment optimization process in both online e-commerce platforms and physical stores, enabling planning the marketplace and building further sales and marketing strategies. Based on the product line’s sales potential, retailers may consider extra market space or vice versa to decrease the product line if it is not profitable.How to Build E-commerce Assortment Strategy
A successful assortment strategy doesn’t mean offering your customers an assortment of random items. To build a complete assortment strategy, you must balance your product offerings with your actual business goals. So, you have to understand the basics of your product line, including its breadth and depth. To build a worthwhile assortment strategy, consider the following steps.Step 1 – Research and analysis
Research is fundamental to any strategy. Market research helps to identify the target audience by collecting and analyzing data and to gain a better understanding of what you offer to your customers based on specific figures. Competitor analysis helps you learn about your competitors, their products, and prices to estimate how your product can stand out from competitors. Customer analysis provides you with helpful and worthful insights about your customers’ preferences and purchase habits that will help you gather feedback about your actual product assortment and change it correspondingly.Step 2 – Select and standardize products
Once you are finished searching and analyzing, check your product list to understand which one has a bigger chance of being sold. For example, if you offer products currently in style, you might have too much stock out of trends. In this case, you can do two things to keep your sales steady over a short to medium period:- Offer stable trends products.
- Choose products so that surges in sales of another complement sales dips in one product.
