Running a successful eCommerce business means adapting to changes, following trends, and most importantly, understanding demand. However, many retail companies struggle to dedicate time and effort to researching the market, monitoring customer preferences, comparing products and prices, and keeping a close eye on seasonal trends.
Luckily, machine learning comes to the rescue when it comes to automating these processes: in the form of assortment and price optimisation – which, when combined, can simplify and improve the shopping experience and lead to revenue growth.
How? By managing your products efficiently arranging them based on consumer demand patterns.
Assortment optimisation allows eCommerce businesses to prepare for supply and demand. Although this solution is similar to product recommendation – it suggests to your consumers which products to buy – there is one main difference: assortment optimisation analyses consumers’ behaviour as a whole and assesses certain patterns.
For example, during the warm summer season, when many people search for electric fans or air conditioners, this solution auto-arranges products according to the seasonal, rather than individual shopper preferences: by popularity, rather than single buyer behaviour.
From a sales perspective, assortment optimisation will urge eCommerce companies to stock up on the most in-demand products and prepare for production. Applying predictive analytics will help you anticipate sales and ensure the right products are procured.
What is Price Optimisation?
Another aspect is price optimisation – which ensures that eCommerce site owners make better price decisions – drawn from third-party signals gathered from competitors’ websites. In other words, price optimisation automatically collects and analyses the price difference from around the web and adapts them accordingly.
It also helps you to understand whether your margins are too tight, or your pricing is too static, and it enables you to adjust prices in the best way possible to reach your sales targets. This AI solution will evaluate your data to perform price optimisation based on demand.
All in all, what do you gain from assortment and price optimisation as an AI solution? How would it be beneficial for your eCommerce website?
- Effective pricing strategy. Saves you time in determining your prices and doing research on your competitors.
- Highly efficient retail planning process. It helps you plan your production and make sure you have all demanded products in stock.
- Revenue growth. Having a well-optimised eCommerce website will lead to more sales.
Ultimately, incorporating an AI solution into your eCommerce website that analyses trends, prices, and popular products can help your business to grow. It can also save you time and money, simplify competitor analysis, and determine your pricing – all while assessing consumer behaviour. So, what’s stopping you from trying it out?
For additional information on assortment and price optimisation, contact the team at Cursum.