www.sigmainfo.netImproved Profit Margin per Sale for an OnlineRetailer of Video Games through AutomatedMarketplace Demand Generation and Re-pricingTechnology Solution
The ClientThe client is an online retailer of video games for all major platformsranging from PC, Nintendo, Wii, Xbox to Playstation 3 and PSP.Business CaseThe client retails video games on popular marketplaces like Amazonand eBay. They source games from multiple vendors and push it tothese market places. The client wanted an automated system thatcould aggregate:1. Cost versus game information from different suppliers2. Demand of all games on the two marketplacesUsing this information, the system would run a cost-benefit analysisand opportunity rank analysis to recommend the best price foreach game. They further wanted to build on this data to automategame ordering process which could be further integrated with theirinventory management system.Also, in order to ensure the price-freshness of each game listed,the client wanted a system to check for various trends on eachmarketplace for each game and then automatically reprice them foroptimized sales. With this vision, the client partnered with SigmaInfosolutions.ChallengesThe wholesale games suppliers send information in different formatsranging from pdf to .XLS.Also, the format in which each supplier sendsinformation varies from time to time. Therefore, due to the lack ofstandardization, tracing the origin of the document to debug an issuetook a lot of time. However, this never crippled Sigma Infosolutionsto roll out functionalities as per the schedule and budget.The system interfaces with Amazon and eBay in order to buildintelligence on each game. Therefore, it was a challenge for SigmaInfosolutions’ team to build a system which could work seamlesslywith Amazon and eBay APIs even while they were undergoing versionupgrades.Executive SummaryThe client is an onlineretailer of video games for allmajor platforms ranging fromPC, Nintendo, Wii, Xbox toPlaystation 3 and PSP. Theysource these games fromwholesalegamessuppliersandthen retail them on Amazonand eBay market places. Theclient wanted to leveragethe wealth of informationprovided by these marketplaces and games suppliersto build market intelligenceto improve profitability pergame without compromisingon the sales numbers.Sigma Infosolutions leveragedits expertise in areas likeweb technology, analytics,and intelligence to build atechnology solution. Thesolution would automate dataaggregation from distributedand disparate applicationsand build unprecedentedanalytical information todrive informed email@example.com
Repricer applicationThe SolutionThe client selected Sigma Infosolutions for its in-depth experiencein web technologies and retail domain. The team provided itsexpertise on building specifications, new application development,and testing.Following are the key applications developed to facilitate the kind ofautomation envisioned by the client:1. Supplier aggregations: The application automates the weekly/monthly data aggregation process from multiple wholesalegame suppliers to gain visibility into each supplier and thegames they provide at the best cost.2. Marketplace demand generation: An analytics system thatprovides unprecedented visibility into opportunity, margins,pricing, competition, and popularity associated with eachgame that is to be listed on Amazon and eBay. Based on theseTechnologySigma Infosolutions used thefollowing technology for thisproject:• Python 2.5.2• Django 1.2.1 with otherplug-ins• LXML and BeautifulSoupparsers, XLS parsers• Mysql DB 5.0www.sigmainfo.netThe whole engagement with the client was carried out without anonsitepresence ofSigmaInfosolutionsteam.Theteam wasinteractingwith the client’s CTO, who was the guiding force behind this projectbut was traveling quite often. Hence, it was a challenging task tocoordinate with the CTO. This also made collating and documentinginputs at various stages of the engagement quite an uphill task.
parameters the engine also recommends the best price foreach game to ensure maximum profitability and sales.3. Automated order management: Based on the analysis derivedfrom both supplier aggregation and market demand generationsystems this application automates the games orderingprocess. It generates an order receipt and then notifies theclient which games in how much quantity are being orderedto which supplier.4. Repricer application: An automated price managementapplication which enables the client to adjust prices of thegames listed on online marketplaces like Amazon and eBay.The client can schedule automated repricing for all or specificgames based on the comparisons made with other competingprices, conditions, seller rankings etc. within the price rangespecified by the client.Sigma Infosolutions team integrated the automated ordermanagement and repricer applications with the client’s existinginventory management system. Once, the client receives theorder from the supplier, they manually clear the order receipt inautomated order management application from where the inventorymanagement system automatically gets updated and then thegames are directly listed on Amazon and Ebay marketplaces. Also,the repricer application interfaces with the inventory managementsystem to feed it with the re-pricing information on all or specificgames for automatic re-listing or deletion from the market places.While working on this solution, Sigma Infosolutions also recommendedthe client to aggressively adopt open-source technologies andframeworks to further improve their profitability. Since, SigmaInfosolutions understood the nuances of the client’s businessextremely well and this engagement had already reaped its benefits,the client chose Sigma Infosolutions as trusted technology partnerfor future development needs.Business BenefitsThe client enjoyed the followingbusiness benefits:• Real-time insight intodemand generation for eachgame on each marketplace• Accurate price managementbased on real-timecomparative analysis ofeach game listed on eachmarketplace• Supplier-wise pricingcomparison for each game• Achieved a real-time supplychain• Trusted technology partnerfor future functionalitydevelopment• Increase in profit margin persale by almost 30%www.sigmainfo.netOpportunity rank analysis report
Sigma Infosolutions LLC-USA, California2082 Michelson Dr.Suite 100Irvine, CA 92612Telephone: (714) 717-1826Fax: (866) 405-6750Toll Free No.: 1-888-861-7360Sigma Infosolutions Ltd.-India,BangaloreSigma Towers#66/A, 13th Cross6th Main, JP Nagar3rd Phase, Bangalore- 560078Telephone: +91-80-40865100About Sigma Infosolutions• Sigma Group, an Indian conglomerate has more than 4 decades of experience in Mining, Chemicals Manufacturing &Export, Handicrafts Manufacturing & Export, and Software Development• Sigma Infosolutions is a TUV certified ISO 9001:2008 & ISO 27001:2005 company• Headquartered in US with presence in India• Some of our esteemed customers include Airtel, Zyme Solutions, Yodlee, Celerity Consulting, Resolution Economics,Birla Global Asset Finance, Fosroc Chemicals, Surgery Planet etc.• Sigma Infosolutions’ services comprises of application development, application management, IT consulting, offshoretesting, and website and portal developmentAccurate price management based on real-timecomparative analysis of each game listed oneach marketplace“Items repriced on a marketplace