Tips for stock management in ecommerce

17/10/2017

Angela de la Vieja

For consumers, the omni- channel commerce of brands is a much appreciated situation because it allows them to buy in multiple points of sale, both virtual and physical, directly to the brand in question or through other multi-brand channels with absolute comfort.

But for brands the omni-channel commerce is a headache, a complex puzzle with a key piece: stock management.

Stock management impacts on finance, trade policy, storage space and logistics, just to mention some of the most important points. But in addition to management knowledge, which is essential, it requires three essential skills: the vision of the stock as an asset, an analytical attitude and focus on the customer.

1.- The vision of the stock as an asset

The stock of products for an ecommerce is one of the biggest assets of the business, but if not managed properly it can become a drag.

Understanding the stock as an asset implies commitment and that commitment is put into practice by analysing the movement of stocks in detail. It is essential to understand both the fast rotations of goods as well as the slow movements and, above all, the causes of these movements. To master this dynamic of movements within the warehouse, we must monitor what happens outside the warehouse, study and predict the demand.

It is advisable to go even further, since monitoring tools allow us to monitor the competition´s stocks and predict commercial actions of the competitors that can influence our own sales and prices.

This extensive monitoring of competition allows demand forecasting to be very accurate and stock management more efficient.

2.- The analytical attitude

Understanding what and how it has been sold in the past is not only key to stock management, it is critical to sales. And to understand what has happened, you need attitude and analytical tools.

On the one hand, we must take an analytical attitude to the search for improvements and optimization of digital sales permanently. Review and update product images, study product descriptions and expand them to measure their impact, analyse top-sellers products and raise different forms of digital merchandising by category, etc.

On the other hand, there is the analytical attitude to study the data in depth. See the historical behaviour of sales, the evolution of stocks, the comparative prices of the competition, annual seasonality, and peak sales by events, etc. These are all multiple ways to monitor all past activity to define future actions.

3.- Focus on the customer

Cross-selling and up selling actions can be very attractive, since they could allow us to increase sales and invigorate stocks. But, even if the need to move the stock is urgent, we should never lose sight of the real need of the customer. A study published in the Harvard Business Review (Thedarksideofcrossselling) warns of the risks of focusing on products or sales without understanding the real need of the customer.

The study reveals four different groups of buyers (called Service demanders, Revenue reversers, Promotion maximizers and Spending limiters), who are very sensitive to cross-selling but end up causing losses to companies.

Stock management needs technology, but also a firm commitment and a clear vision: the best product is the one in the hands of a satisfied customer.

11/11/2022

Consumer behavior: How can behavior tracking be effective for setting the right pricing strategies?

Behavior tracking is becoming massively popular today. As a result, pricing strategies born from studying consumer behavior are a merchant's dream come true. If done right, it can conquer every market for the business quickly. With abundant data available, the strategic makeover of the pricing models is becoming easy for companies.

What is behavioral tracking, and how is the data beneficial in pricing?

For a quick understanding, behavioral tracking refers to gaining in-depth knowledge and insights into consumers through their web data. Their browsing habits, spontaneous decisions, shopping interests, and preferences come under behavioral tracking.

How can enterprises use customer behavior data?

Companies can use customer behavior data as a tool to strengthen their hold on the market. A customer’s preferences, values, and tendencies allow businesses to work in sync with them through the collected data. Apart from this, customer behavior can also aid in:

Tailoring customer needs for customer retention

Personalization is becoming the heart of a company’s growth. No matter in which area an enterprise is functioning, tailoring the services, products, and solutions is becoming increasingly crucial. Uniqueness and personalization attract the crowd like no other.

Increasing the overall value

One of the best ways customer behavior data affects a business is by upgrading the value of customers for the business. The customer’s characteristics allow the company to target the people that match the business prospects well.

Optimizing every type of content

Everything that is up for digital display requires content. You must have seen companies unveiling their products or services through advertisements and making the initial public appearance. Two essential sales strategies – upselling and cross-selling comes through content optimization.

Pricing Strategy

Last but certainly not least is the influence of customer behavior data on the pricing strategy. The pricing strategy essentially constitutes content derived from data analysis. Companies need to have a dynamic approach to the pricing system to attract the right customers.

17/02/2015

Saint Valentine’s Day, always a good opportunity

V-Day is looming, a long-awaited date for all and also a good occasion for the eCommerce. According the study conducted by Prosper Insights and Analytics, it is forecasted the average consumer expense that day will be the highest in last years. Furthermore, 25% of them will buy online, which means an increase of 4% regarding 2014 (The US department of Commerce). This is, therefore, a key date where market competitiveness increase and which could be assumed as a big opportunity for our business or, a big fail if we do not adopt the correct strategies.

How to turn this event into an opportunity? To achieve this goal, we need to adapt our prices to this hostile environment, i.e. we need to develop an appropriate Dynamic Pricing strategy that allows us to adapt our prices to the variations produced in supply and demand and to position us ahead of our competitors. In V-Day, the frequency in changes will be higher, carrying it out each hour or even each minute. It is estimated that 65% of leader retailers have the ability to respond quickly at these variations, such Amazon. For this reason, it acquires great importance the correct use of a software specialised in price motorisation of competitors. Do not miss the time and adapt your business to new adversities.

28/12/2022

Which are the best footwear marketplaces to sell on?

Footwear marketplaces are booming. The last decade has seen the launch of new specialized marketplaces with millions of different users. Among them are Spartoo, Sarenza and Farfetch, portals with international reach. Their main value is that they unite hundreds of footwear brands, as well as offering clothes and accessories. Although each has its own characteristics, they are all vertical marketplaces, i.e., they focus on a specific area, and their sales categories are interrelated. For sellers, these portals provide an opportunity to expand sales channels and drive the globalization of their e-commerce business. We explain how to sell on these footwear marketplaces so that you can assess whether they align with your plans for the future and then start defining a possible pricing strategy.