08/30/2022
30% is the average increase in the number of products on Top100 USA retailers websites in the last year. But - ๐ถ๐ ๐ฎ ๐ต๐ถ๐ด๐ต ๐ป๐๐บ๐ฏ๐ฒ๐ฟ ๐ผ๐ณ ๐ฝ๐ฟ๐ผ๐ฑ๐๐ฐ๐๐ ๐ด๐ผ๐ผ๐ฑ ๐ผ๐ฟ ๐ฏ๐ฎ๐ฑ?
While high number of SKUs can help with -
1 - Dealing with out-of-stocks and delays in the supply chain.
2 - Consumer needs better answered as you are more likely to hold what consumers want.
3 - Driving traffic as you can lower prices when left with stock while others do not.
Itโs also a big headache for retailers.
Itโs very hard to manage it properly and many retailers, also the biggest ones, are now struggling with it. ๐๐ฎ๐๐๐ถ๐ป๐ด ๐ฎ ๐ฟ๐ฒ๐ฑ๐๐ฐ๐๐ถ๐ผ๐ป ๐ผ๐ณ ~๐ญ๐ฑ%-๐ฎ๐ฌ%(!) ๐ผ๐ณ ๐๐ต๐ฒ ๐ฝ๐ฟ๐ผ๐ณ๐ถ๐๐.
From my experience, one of the helpful methods is to do โ๐ฆ๐๐จ ๐ฟ๐ฎ๐๐ถ๐ผ๐ป๐ฎ๐น๐ถ๐๐ฎ๐๐ถ๐ผ๐ปโ once a month.
1 - Try a โShock' pricing-strategy (raise price and then significantly drop) for not selling items.
2 - Discontinue items not selling for 60 days and no pricing or marketing strategy had helped them.
3 - Choose new 50-500 most trending products in the market you do not yet stock instead.
๐ง๐ต๐ฒ๐ฟ๐ฒ ๐ถ๐ ๐ด๐ฟ๐ฒ๐ฎ๐ ๐๐ฒ๐ฐ๐ต๐ป๐ผ๐น๐ผ๐ด๐ ๐ฎ๐ฟ๐ผ๐๐ป๐ฑ to help you with that. Much more profitable and higher chances to be right when choosing which new products to bring in and in setting the right pricing or promotion.
One thing is for sure, if you own the inventory at this stage in the game and you are making bets on what to carry, you had better be right. Inventory investments are riskier than ever and all carry a heavy burden of unknown risk.
