What does offline merchandising look like
In any mall, the best products are at the user’s eye level. Cheaper ones are at the sole level. Small items are at the checkout. Things that need to be quickly stimulated by demand are placed on separate islands-stands.
The location is not chosen just like that: the seller proceeds from his own considerations on how to make more sales, the manufacturer enters into contracts with the seller, according to which his tangerines are on the best shelves. It’s the same online, but with its own nuances.
Supply creates demand
It’s like in the classic law, only the other way around. On the site, in the most prominent place, there is a block “super offer of the week”. The buyer thinks: “a caring seller has put all the best for me so that I don’t have to kuwait phone number data dig into the depths of the catalog.” The seller
thinks: “I’ll create such a block, everyone will want to be placed there, I’ll wait for offers from suppliers.” The manufacturer thinks: “it’s high time to promote our flagship, we need to buy advertising space.” As a result, all participants in the chain are happy.
Online merchandising can be compared to contextual advertising. Only the impressions are placed in the store itself, and only those products that are actually in the catalog act as advertising offers. The mechanism is “clicked — put in the basket — bought”, and not “clicked — went to another site with the product”, as in contextual advertising. The benefit for the store is obvious, it does not need to share target traffic with anyone. Schematically, the process of promoting a product through this channel looks something like this:
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Attracting buyers through contracts with the largest online retailers
Several leading online retailers in the segment are selected, contracts are concluded with each, and sales statistics are tracked for each. Contracts with the best channels are extended, the least effective ones are replaced.
But this approach has a downside: leading retailers are far from the entire market. Yes, it is easier to work with them. But the full picture looks something like this:
A galaxy of small online stores accounts for about 70% of the total turnover show empathy read on the market. A significant figure. But at the same time, there is zero controllability here: in order to launch an advertising campaign to promote a product, the manufacturer will have to work not with two or three retailers, but with hundreds and thousands. Therefore, no one wants to deal with this channel manually. But this process has been automated today.
Online merchandising platform
Today, there are companies that provide a special type of service bw lists on the e-commerce market – an external system of product recommendations. When a module is connected to a store (recommendation blocks are created in the right places), the platform begins to show products in these blocks.