E-commerce

E-commerce analytics’ contribution to company strategy

According to the U.S. Department of Commerce, last year’s e-commerce sales topped $1 trillion. More than 8% of those sales came from big-box stores like Walmart and Target. E-commerce is still growing, with over 80% of Americans purchasing online. Traditional brick-and-mortar stores like Walmart, which recorded a 27% increase in e-commerce sales in the first quarter of this year, may be the largest beneficiaries. In the relatively new realm of brick-and-mortar e-commerce, it is critical for companies to comprehend the role analytics play in the success of their e-commerce endeavors.

When selling nationwide to a major store like Walmart, marketers aren’t focusing on just one e-commerce site; rather, they’re focusing on thousands of different locations, which is why they require comprehensive analytics. These three e-commerce analytics opportunities can assist firms in enhancing product awareness and informing company strategy.

1. SEO-based keyword ranking
Customers of a brand should be drawn in by product descriptions. However, search engine algorithms must also find the information appealing. Brands run the danger of losing their position in search engine result pages (SERPs) if they don’t. A disproportionate amount of clicks and transactions go to the top-ranking positions. For instance, almost 70% of all clicks on Google come from the first five search results. Therefore, businesses are not guaranteed to generate a sale just because a product is on page one.

For SEO optimization to increase sales, selecting the appropriate keywords is essential. The aisles of e-commerce are keywords. A brand’s sales increase with the number of aisles and the positioning of those aisles. Copy that is optimized for search engines puts items at the top of popular searches and makes them easier for buyers to find.

SEO, however, shouldn’t be a one-and-done approach. Brands are unable to choose keywords and then go to other projects. If a brand doesn’t actively and continuously work on SEO, it will eventually lose its ranking even if it lands on the top results page.

SEO has to be an ongoing, opportunistic effort to enhance store websites’ shelf positioning. For brands to get the best ranking rates, SEO must be their first priority. An e-commerce analytics platform is one tool that may help with this continuous endeavor. Brands may use this technology to assess their online SEO effectiveness and determine how to enhance their efforts.

2. Out-of-stock information at the store level
Nearly 60% of American internet customers claim that out-of-stock situations influence their purchasing decisions. In order to prevent customers from being disappointed when a product they desire is unavailable online, brands should accurately portray their inventory. You can’t sell what you don’t have, after all.

A brand’s product is binary in an online marketplace such as Amazon: it is either in stock or it is not. On the other hand, Walmart has an equal number of websites and more than 4,600 stores. There will be more than 4,600 responses if a brand asks, “Is my item in stock at a Walmart for e-commerce?”

Brands may use e-commerce analytics tools to find out-of-stock (OOS) items as soon as they sell out and take remedial action, including replenishing the product, offering substitutes, or changing prices or promotions. Additionally, by using this data, businesses may monitor trends and patterns in OOS incidents and make better decisions about supply chain efficiency and inventory management.

Companies most definitely do not want to spend money on advertising only for consumers to find out that a product is out of stock. Brands may reduce missed sales, improve customer satisfaction to prevent brand switching, and maximize revenue by optimizing inventory management with a proactive strategy.

3. Analysis of prices at the store level
In order to find patterns, trends, and areas for optimization, store-level pricing research looks at the prices of comparable items for thousands of retail locations across several websites. Companies may find that their product pricing varies between online and in-store. Brands use this data to determine when to change prices in order to keep things consistent.

To reflect demand and the state of the economy, brands may improve pricing strategies for various items and regions by using an e-commerce analytics platform. For instance, a company could decide to give a discount if sales of a product aren’t as strong. A product’s price may rise as a result of rising company expenses.

Brands should also keep an eye on rivals’ prices to make sure they’re not overcharging and to have a better idea of what consumers are prepared to spend on a given item. In order to position their products as the best (and maybe more economical) option, brands might then adjust their pricing methods. Brands increase consumer happiness by establishing reasonable and competitive prices, which encourage repeat business and good word-of-mouth advertising.

E-commerce analytics put companies in a stronger position to thrive in a highly competitive environment. Brands improve the overall success of e-commerce by analyzing consumer behavior, refining pricing tactics, and guaranteeing product availability.

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