The right product in the right place

In the past, a lot of purchasing and assortment development within the e-commerce channel was based on bringing in well-known brands and stocking up on what you think will sell, while keeping an eye on your competitors. Depending on the model, the distribution between own warehouse, 3PL or dropship has also been limited

There are significantly better approaches, however, there are only a few like the knowledge to work with purchases in combination with data analysis, which gives the e-commerce channel conditions that most other traditional channels do not have.

The easy access to almost perfect data both about the customers (the payer) and their purchasing behavior, but also a very transparent market means that external data is relatively easy to obtain. This makes an otherwise very dusty work area incredibly exciting and also profitable, since pretty much all data processing in e-commerce aims to increase the conversion rate in various ways.

Most e-merchants already work with the analysis of different types of market data from a traffic generation perspective to optimize the structure of the page or buy the right words, the most common tool in the box has been Google Analytics which is often used to search optimize the page and work with volume and relevance for different keywords.

"You miss the fundamental analysis of the assortment as you most often use an "inside-out" perspective"

What is often forgotten or focused on too little in the amount of data that can now be obtained, is the traditional analysis from a purchasing and sales perspective. You miss the basic analysis of the assortment as you most often use an "inside-out" perspective and only look at what you have and how to make the search better on the existing portfolio.

Therefore, if you instead flip the coin and look at the same analysis (volume/relevance) from a purchasing perspective and look at what is requested (searched) by the most people both via Google but also via different marketplaces, you get an aggregate result of what the market is asking for and also what should be presented in the product portfolio on the page.

With limited resources, you have to compare different options in order to prioritize brands or products that you add to the site, this analysis becomes a way to identify the "right" assortment from both a traffic perspective but also a purchasing perspective.

"boost your sales by several months and reach break even in a new market much faster."

This can be extra valuable when entering new markets, by having the right product range (and price) early on, you can boost your sales by several months and reach break even in a new market much faster.

By working with dynamic data, you can also catch products that are starting to trend early and make sure to have these in your range when they reach an interesting level, and thus be early on the ball.

If you work systematically with a data-driven way of working to build up a new powerful assortment with a large search volume instead of just trying to search optimize and improve an existing assortment, you can influence the conversion on all levels.

"with products that customers are actually looking for and are interested in"

The effect is equivalent to putting a highway through the usual conversion funnel when you create a more attractive assortment within the category with products that customers are actually looking for and are interested in.