Product category:
E-commerce software
News Release from: Zendor | Subject: E-commerce services
Edited by the Manufacturingtalk Editorial
Team on 24 February 2005
E-selling advice from Zendor
Selecting the right product range for an online proposition is a skill that many retailers have yet to fully master and understand.
Selecting the right product range for an online proposition is a skill that many retailers have yet to fully master and understand It is all too common for retailers new in Internet retailing to replicate their high street range on the web
This article was originally published on Manufacturingtalk on 5 Nov 2004 at 8.00am (UK)
Related stories
Top Tips for Online Selling Business Plan
Zendor provides the top ten tips for providing an online selling business plan
Top Ten Tips For Online Retail Success
Zendor Provides Top Ten Tips For Online Retail Success
However, those with experience and expertise in multi-channel retailing will know that what sells well in-store will not necessarily enjoy the same success online.
Zendor, the Manchester-based fulfilment specialist, understands the significance of identifying the most appropriate and desirable range of products for distance selling and provides the following step-by-step advice for retailers who are considering moving their proposition online:.
* Determine online proposition - The key starting point is for the retailer to determine WHY they are moving online as this will impact the range selection.
Further reading
Zendor chosen by mail order retailer
Zendor, the Manchester-based fulfilment expert, has been appointed by mail-order retailer Joseph Turner to print its Autumn/Winter recruitment catalogue.
Money is Main Obstacle to Retailers Moving Online
Distance shopping expert Zendor has followed up its research into the online retail market with a further in-depth study of more than 50 top retailers.
Unlock the Potential of Your Customer Database
Zendor, the distance-shopping expert, provides a portfolio of services to retailers interested in moving into multi-channel retailing.
Is it to emulate the in-store proposition or to provide a range extension (perhaps driven by limited floor space in-store)? * Identify customer behaviour - The retailer's proposition needs to take into account customer behaviour and purchasing patterns as well as customer expectations of the new website.
For instance, will customers want to buy FMCGs online? If the answer is 'probably not', the retailer may choose to exclude these from the online range or alternately, may decide to include them low down the navigational tree.
* Decide pricing architecture - Average selling price of items for the online range needs to be decided.
This should take into account the overheads of running a distance shopping business, from website maintenance costs through to warehousing, pick, packing and delivery costs.
As low value items will not help the retailer achieve a profit, it is wise not to include many of these in the range! * Use low value items as 'add-ons' - If low value items are included in the online range, they need to be used strategically as an 'add-on' in order to drive up average order values.
For example, low value belts and handbags should be upsold by linking and cross-selling with higher priced items such as matching trousers, tops and shoes.
* Make range selections to maximise cross-sell and up-sell opportunities - Retailers should select items that are versatile enough to be used for cross-selling and/or up-selling, thereby helping to drive average order values.
For instance, trousers can be placed next to matching shirts and jackets on the website to maximise sales opportunities, and to facilitate navigation and ordering.
* Move away from low margin products - It is advisable to avoid low margin products in the range because the distance shopping overheads will eat-up the profits.
* Assess whether winning lines in-store will work online - As a rule, winning product lines and 'best-sellers' in-store are likely to also prove a success online.
However, this is not always the case and so the retailer needs to assess each product for its suitability online (based upon the aforementioned criteria).
* Ensure products are suitable for home delivery - Some products are intrinsically unsuitable for home delivery, such as fragile glassware, liquids etc If such products are included as part of the online range, they are likely to get damaged in transit, increasing the number of returned products (and hence overall costs).
By following the above process, from clarifying online proposition, to ensuring the products are able to travel 'in one piece' via the distance shopping network, retailers will be able to identify the most suitable range to sell online.
By considering the online product range and proposition carefully, the retailer is in a better position to maximise response rates and profitability, and consequently generate a greater return on investment.
• Zendor: contact details and other news
• Email this article to a colleague
• Register for the free Manufacturingtalk email newsletter
• Manufacturingtalk Home Page
Search the Pro-Talk network of sites
