A strategically active brand management knows customers, market and competitors very well. It also controls in advance which products of a range are sold in which channels. Not every retailer's product is suitable for online sales, for example because it is too cheap, the fit is too tight, the added value is not visible or difficult to see on photos. On the other hand, products can be sold online that are less suitable for stationary trade, as they may have been made of knitted fabric in a fit and flattering way and may well be convincing in a photo, but do not look very attractive on a hanger.
The price architecture of a successful multi- or omni-channel range will also be designed so that the extracts from the range offered in the various channels satisfy the wishes of the respective customers. How do you manage to limit the return quotas? In addition to the above-mentioned well-considered allocation of sales channels for each product, detailed product descriptions and good photos in the online shop, a reliable fit and materials as well as good online advice regarding the fit are important aspects.
Online
Calculate costs
Items that are sold online must be calculated to cover the costs. However, it makes sense not to add the same surcharge to every article. In order to assess the online success of an article, it is important to determine suitable KPIs and to set up a corresponding reporting system. This is a big step, especially for retailers with the appropriate business model, as the new online sales channel requires new KPIs and significantly increases the complexity of the analysis.
E-Commerce
Quantity planing
The e-commerce channel also changes the requirements for quantity planning and reordering considerably.
If, again using the example of a retailer, the quantities were calculated by stocking the areas and the assumed sales within a defined period of time, it is now necessary to derive an initial order from the previous year's data and to guarantee a quick reorder. As promising and necessary as online retailing is for competitive reasons, it requires good planning and external or internal expertise to make it profitable. We are happy to support you!