When a product’s performance is shown in different lights, you’ll find more ways to strategize for revenue growth. In order to make strategic decisions you should evaluate performance routinely. Before getting started, identify the products from your store that fall into the metrics listed below.
What is a Cold Product?
- Lowest Quantity Sold
- Lowest Gross Profit
- Lowest Sales Margin
- Most Refunded Products
- Most Abandoned Products
First, determine if the issue is poor product placement.
Consider moving low performing items to a more prominent place on your ecommerce site. Place low sellers on your home page or call them out as a featured items to determine if product placement is the problem. Another way to troubleshoot product placement is to ensure users are able to find the product. This example from a major department store allows buyers to narrow by several categories including color, price, brand and size. An enhanced search allows for buyers to quickly and easily find exactly what they want.
Second, troubleshoot potential issues before moving on to unfreezing techniques. I
- Is the product description accurate?
- Does the product description meet customers’ expectations?
- Are you using a high quality product image?
- Do you include views from several angles for a complete picture of the item? Can you zoom in on the images?
- Do you include both product features and benefits?
4 Strategies to Unfreeze Merchandise
Showcase Sales - Draw attention to products that have just been reduced in price.
Segment Discounts - Include an easy-to-find section featuring only sales or clearance items. A study by the E-tailing Group found 62% of shoppers are looking for a section that identifies discounts and specials.
Create Urgency - Create urgency by putting a time limit on sales or number of products left.
Trim the Fat - Finally, it may be time to reduce prices on cold products to make room for high performing, full price inventory. The good news: a study by the E-tailing Group found 47% of online buyers only buy discounted products, except under extreme circumstances.
When a product’s performance is shown in different lights, you’ll find more ways to strategize for revenue growth. In order to make strategic decisions you should evaluate performance routinely.