Is there a disconnect between e-commerce software and daily business reality? Whilst extremely powerful, the ethos behind e-commerce applications often seems far removed from the one problem business owners face on a daily basis: cashflow. In other words, the ability to turn stock into cash by providing the tools to simultaneous identify and promote poor performing items to their customers.
Finding Inventory Opportunities
Created by a nine-year e-commerce retail veteran, Inventosaur ends the disconnect between software and cash flow, providing a suite of tools to track inventory levels based on customisable % sold sales parameters. If a product begins to perform below sales expectations, it becomes an ‘Opportunity’ inside the Inventosaur app, where, in about the time it takes to say, ‘cash money’, you can turn it into a Promotion - all you have to do is choose the offer date range and percentage discount.
There are a couple of useful tools that help you to make sense of the Opportunities list. With the Behaviour filter you can see:
- Slow sellers - items that have fallen short of your global sales threshold percentage.
- Viewed but not often added to the bag - items that are often viewed, but not readily added to the shopping bag.
- Added to bag but not often purchased - items that are often added to the shopping bag, but not readily purchased.
- Good sellers gone bad - a previously good seller for the same period a year before, now not so good.
- Category viewed but not often purchased - a category often viewed, but whose products are not readily added to the shopping bag.
- Category with low views and low sales - a department with few views and low sales
While incredibly useful, the data here is not solely used for building promotions; by seeing items with poor metrics, you can spend time checking to see if there is anything that can be done to improve product price, presentation, copy or images before resorting to a promotion. The same applies to a problem category, which Inventosaur will also provide data on.
Defining a Slow Seller, Customised to Your Store
Inventosaur can calculate which products are ‘Opportunities’ by taking a nightly snapshot of your store’s inventory, then reviewing it against another snapshot taken 30, 60 and 90 days later. But that’s not quite enough to be able to say a product is a slow mover. Inventosaur also includes a customisable % sold threshold, which it will use in combination with the inventory snapshot to calculate if a product is a slow mover - an ‘Opportunity’.
An example of when Inventosaur would create an Opportunity:
One day, just after his morning coffee, Bill receives an inventory shipment of ten dinosaur logo smartphone covers (excellent!). After 30 days there are still eight in stock - Bill has sold only two (apparently dinosaurs are not hot right now - rats).
In the settings area of Inventosaur, Bill had entered a threshold of 50%, which told Inventosaur to class an item as an Opportunity if it sold 50% or less of its inventory in a given time frame. As Bill has so far only sold 20% of his smartphone covers, Inventosaur correctly classed this product as an Opportunity ready for promotion on the front end.
But what if you are a retailer of high ticket price, lower volume items?
An example of when Inventosaur would NOT create an Opportunity:
One day, Jane adds a new shipment of 6 seriously high-end diamond dinosaur icon earrings (shiny!). After 30 days, four remain in stock - Jane has sold two, which is good news as the sales are in line with Jane’s expectations, cash flow and business model.
In the settings area of Inventosaur, Jane had entered a threshold number of 20%, which told Inventosaur to class an item as an Opportunity if it sold 20% or less of its inventory. However, as Jane sold over 30% of her stock, no Opportunity was created - those earrings are good sellers for Jane’s business!
Tracking Conversion Rate
Inventosaur will measure a global conversion rate of product views vs orders, after which it will have a good idea of your store’s raw performance. Once calculated, it will have the data to inform the creation of specific Behaviour filters in the Opportunities area.
Once installed, Inventosaur gets to work analysing your stock levels. However, there’s a heap of data about products viewed and bought together already in your e-commerce system. As a rich vein of relevant product connections it’s hard to beat, and for Inventosaur, it’s the stuff that powers combination Opportunities.
With a host of user behaviours available across both simple and combination offers, you’ll start to see highly relevant, data-mined Opportunities based on pre-existing user behaviour. For example, you can see all combination Opportunities filtered by ‘Added to bag but not often bought’? And within seconds, you can promote them to your users, setting duration and discount level at the same time.
Clicking an Opportunity shows you why it’s there (think of it as the story of the product), and provides a snappy interface to create a beautiful front end promotion in about the time it takes to say, ‘cash flow makes me happy’.