With the growing influence of SMEs in the online retail business, this industry has undergone massive transformations. Millions of e-commerce websites are competing for the dominance in this space.
Here, the products and their pricing are the ultimate factors affecting sales and ROI. This domain is getting excessively competitive. The businesses can’t rely on traditional methods of arranging product assortments. They need automated systems for streamlining their presentation and sales pitching. In this regard, product intelligence and data analytics are the best methodologies defined for making informed merchandising decisions.
In fact, product assortment is the cornerstone of successful e-commerce services. When amalgamated with competitor intelligence, it helps to maintain a consistency in product offerings and provide remarkable shopping experiences to the customers. Here are the reasons that define importance of understanding the competitor’s product assortment.
Helps in Making Timely Decisions:
The online retail companies are earning better returns by focusing on product intelligence. Application of technologies like Big Data analytics and machine learning can help in collecting and analyzing the data regarding the products sold by your competitors and their sales margins. You can leverage this information to make timely decisions regarding an ideal product mix encompassing the best trending as well as the most preferred products.
Helps in Competitive Pricing:
In the sphere of marketing and sales, pricing matters the most. The consumers are getting smarter. They use every possible online resource to compare the prices before buying any product. Also, extensive searches made on Google lead them to the product sites. Most of them prefer buying according to prices. Hence, you need to price your products competitively. Before that, you must know the pricing done by your nearest competitors. According to this information, you can pitch your products in front of the targeted audiences.
Helps in Making an Infallible Business Strategy:
In the online retail business, pricing-based strategies take precedence over any other strategic plan. You need to understand the products and prices offered by your competitors. It is essential to assess the type of competition faced in the market. If you are competing against a leader, you need a strong strategy to sustain your business. However, if there is uniformity in the pricing models, you must innovate to set your business in a different league.
Enhances Brand Recognition:
If you are facing a stiff competition, it is important to understand the USP and pricing model of your competitors. This helps in influencing the buyer’s behavior up to a large extent. You can’t sustain a highly volatile and competitive market unless your pricing is absolutely aggressive. Here, you can maintain the low-price strategy on a few selected items until your customers know your brand and relate to it.
Helps in Avoiding Costly Mistakes:
When you understand yours and your competitor’s product assortment in advance, you can avoid many potential risks. This timely analysis helps in choosing the right products and planning an effective sales strategy as well. You can harness your capital for making well-informed decisions and identify the new opportunities emerging on this landscape. You can stock the products having highest demands and improve your conversion rates, especially when the competitors are out of stock for a popular product.
Hence, it is extremely significant to know your competitor’s product assortment and pricing before investing in the inventory. Automation of data and analytics is the best option for the online retail companies competing in this domain. At Infognana, we offer comprehensive online retail solutions tailored to the specific needs and demands of our clients. You can take help of our experts for such smart insights.