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The 5 Critical Connections to Increase Sell-through Velocity

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While being customer-centric is a top priority, at the end of the day retailers need to sell the products they have on the shelves—and sell them as quickly as possible. There are too many areas where the system can break down and leave you with out-of-season inventory that has to go to markdown. These areas are typically ones that a lot of retailers overlook or take for granted thinking things are running smoothly. These five critical connections bring to light how important it is to have visibility into the entire process of sample to shipping (and everything in between) in order to increase your sell-through velocity.

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The 5 Critical Connections to Increase Sell-through Velocity

  1. 1. The Critical Connections of eCommerce success Increase Sell-through Velocity
  2. 2. The Critical Connections of eCommerce success The Critical Connections of eCommerce success Increase Sell-through Velocity While being customer-centric is a top priority, at the end of the day retailers need to sell the products they have on the shelves—and sell them as quickly as possible. There are too many areas where the system can break down and leave you with out-of-season inventory that has to go to markdown. These areas are typically ones that a lot of retailers overlook or take for granted thinking things are running smoothly. These five critical connections bring to light how important it is to have visibility into the entire process of sample to shipping (and everything in between) in order to increase your sell-through velocity. 1. Inventory Received to Posted 2. Competitive Pricing & Delivery Terms 3. External Exposure 4. Internal Exposure 5. On-site Search & Categorization
  3. 3. The Critical Connections of eCommerce success The Critical Connections to Increase Sell-through Velocity 1. Inventory Received to Posted How can you leverage inventory received and posted data? Do you know how long it takes for products to get shot and posted to your website? Do you wait for the whole collection before shooting? How do returned items get processed and restocked? Time is money—especially in retail where products that spend days or weeks in limbo mean you’re losing money on potential sales. Looking across inventory, website data and even returns is not something many retailers have the capability to do often or too easily. Connecting these areas of the business can help improve sell-through velocity. What are other retailers doing inventory received and posted data? By combining their web analytics and inventory data, Dynamic Action highlighted nearly $4 million dollars worth of inventory that had no exposure on a retailer’s website. When they investigated further, they discovered that the delay was due to the fact that the inventory was awaiting photographs, copy and product details for the website. Realizing what this delay might be costing them in missed sales, they bought additional photo booths to speed up the production process, which helped improve their sell-through velocity.
  4. 4. The Critical Connections of eCommerce success The Critical Connections to Increase Sell-through Velocity 2. Competitive Pricing & Delivery Terms How can you leverage competitive pricing data? eCommerce has increased the competitive landscape giving retailers the ability to change prices on a daily if not hourly basis. Your products may not be selling quickly enough because competitors are out-pricing you or offering better delivery terms. Maintaining a constant handle on what your competitors are doing can be an overwhelming task for all of your products, but with an application that can pinpoint where the biggest disparities may lie, you can remain competitive, maintain your sell-through velocity and save time combing through competitive data. What are other retailers doing with competitive pricing? A luxury goods retailer was alerted to products that were overstocked and priced high compared to competitors. When investigating the items in question, they found that some items were overpriced by as much as $1,000. Adjusting the pricing to be more in line with other retailers—while still maintaining a healthy margin—they managed to improve the sales and sell-through velocity of these products without having to resort to multiple rounds of markdowns and, ultimately, liquidation.
  5. 5. The Critical Connections of eCommerce success The Critical Connections to Increase Sell-through Velocity 3. External Exposure Why is external exposure critical to increasing sell-through velocity? Is there not enough external exposure to drive traffic to the products? While marketing is one of the more obvious answers to increase sell-through velocity, keeping track of all of your marketing efforts—PPC, email, affiliates, display— across all of your products is nearly impossible. Sometimes the connection between marketing and merchandising teams can get lost. With the right technology, identifying those products with the greatest revenue potential that have limited or no external exposure can present significant sales opportunities. What are other retailers doing with external exposure data? By connecting one retailer’s marketing channels data and product inventory, Dynamic Action identified nearly $300,000 of inventory that had no external exposure through any marketing channels. The marketing and merchandising teams collaborated on those products to drive more external traffic. By increasing the external views of these product pages, they were able to increase sales and improve the sell-through velocity.
  6. 6. The Critical Connections of eCommerce success The Critical Connections to Increase Sell-through Velocity 4. Internal Exposure How can you leverage internal exposure data? Do you know if every product is on your website and ready for purchase? If the landing pages are correct? If the product descriptions and imagery are high quality and accurate? With thousands or even millions of SKUs that can change daily, these can be daunting tasks to keep up with. Internal exposure on the website is just as important as external exposure. Having an application that can alert you to the biggest internal exposure issues and opportunities may help get your products in front of more customers—resulting in increased sell through. What are other retailers doing with internal exposure data? Using Dynamic Action, a high-end retailer found $500,000 worth of inventory that had no internal exposure on their website. By connecting their web analytics and inventory data, they were able to identify the exact products at issue. They then worked with the merchandising and content teams to shoot the products and get them up on the site, which ultimately increased sales of these items and avoided markdowns on potentially out-of-season inventory.
  7. 7. The Critical Connections of eCommerce success The Critical Connections to Increase Sell-through Velocity 5. On-site Search & Categorization How can you leverage on-site search and categorization data? Knowing every variation of search terms and categories that your customers browse on your site is impossible. However, missed dual-merchandising opportunities or miscategorization issues may be the cause of markdowns because customers can’t find the products they’re looking for. Do you know which of your products are not showing up in on-site searches? Are they showing up low in the sort order? Identifying the products with the biggest revenue potential and how they appear in search results and categorization can present a significant opportunity for improving the sales and sell-through velocity of these items. What are other retailers doing with on-site search and categorization? Connecting web analytics and inventory data, Dynamic Action identified $1,000,000 worth of overstocked products for a high-end retailer. Upon investigation, they found that some of these products had been miscategorized or had too few views in search results. They dual-merchandised and recategorized these products to give them added exposure in on-site search and sort orders, which resulted in increased sales.
  8. 8. The Critical Connections of eCommerce success About Dynamic Action Dynamic Action from OrderDynamics helps forward-looking retailers and brands drive every last dollar of profit from their eCommerce business.  This first-of-its-kind Decision Intelligence application connects and analyzes product and customer data across a retailer’s organization. Unlike any reporting or analytics tool to date, Dynamic Action tells you exactly what’s impacting profit, recommends actions to take, and ranks them by how much they’re worth to your business.  Find out how the leaders in retail are revolutionizing their omni-channel businesses at www.orderdynamics.com.

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