Author: Riya Anand

  • 5 Ways to Manage and Improve Stock Availability

    5 Ways to Manage and Improve Stock Availability

    Stock availability is the degree to which a brand or retailer has inventory of all their listed items to meet customer demand. Product availability becomes even more critical when they have to respond to unforeseen changes in demand and supply. To maintain the ideal stock availability levels for all items, they need robust inventory management tools to ensure real-time updates on current stock and accurate insights into upcoming demand.

    However, managing stock availability is not a clear-cut science. Retailers must balance the change in demand and keep stock availability in check

    Why Stock Availability Matters

    One of the challenges of running a retail business is to optimize inventory and associated costs. Maintaining stock availability in stores is critical for offline retail businesses. And when selling online, making sure products are available across different retailers and marketplaces can have a huge impact on sales and conversions. 

    1. Understocking: It’s when a brand’s product fails to meet consumer demand. If this happens often enough, customers may not return to the brand’s website or app because of the initial experience. Understocking is not a brand’s fault entirely since they might not always be able to anticipate a change in demand. However, it’s about a their ability to adapt to a quick change in the market trends through historical analysis and accurate forecasting. 
    2. Overstocking: It’s when a company orders too much inventory. Holding too much stock will lead to higher storage costs, shrinkage, and obsolescence losses. Another loss occurs if the brand can’t quickly sell the items — diminishing the value of the products. 

    We gathered data to see the impact of a short-term stockout on Amazon for one of our customers. Read more about what we uncovered & how deep the damage was, here.

    7 Ways to improve stock availability 

    1. Collect Accurate Data

    Availability across Brands and Categories

    When multiple items are moving through a supply chain, companies can easily run into inventory inaccuracies. Discrepancies between the values of your system and the actual inventory of products can lead to understocking or overstocking. The best way to avoid discrepancies in inventory is to invest in an inventory management tool that gives you real-time updates on your stock. This is applicable for offline retail businesses. 

    2. Managing eCommerce inventory

    Availability at Individual Product Level
    Availability at Individual Product level by regions

    Effective eCommerce inventory management is as important as making sure products are available in stores. Keeping track of your inventory levels and ensuring that you’re always well-stocked can avoid lost sales and keep your company running smoothly. Brands must ensure their stock is available across all the online platforms they sell. Access to real-time inventory data can help to keep a close eye on stock status across all marketplaces & retailers the product is available. Retailers also need to keep track of market trends to ensure they have the right inventory assortment to match customers’ demands. 

    3. Understand Consumer Demand

    The only way to accurately predict future demand is to rely on historical data about your customer purchase trends. What do your customers purchase during holiday seasons? What are the upcoming trends in your category? Having data-backed answers to such questions will help brands and retailers properly stock up their inventory.

    4. Adequate forecasting 

    Anticipating demand will help determine which products should be stocked during which seasons. Tracking past sales and metrics such as economic conditions, seasonality, peak buying months, and promotions will help brands predict demand. Analyzing such statistics will also help you get insights into the target market.

    Availability across regions

    5. Improve supplier relationships

    It’s important to rely on a supply chain that delivers your shipment promptly. In fact, you should foster close relationships with your suppliers to trim costs and improve stock availability. You should be able to share key details such as future demands, so suppliers can ensure timely delivery. 

    Availability Analysis
    Availability Analysis across Retailers and Categories

    Consequences of Inefficient Inventory Management

    What are the effects of overstocking?

    Tied-up cash: Money spent on overstocking is tied-up money that your company could have put to better use. You can use it to pay off debts, wages, and rent. Inventory often has a limited shelf life due to material degradation, changing consumer trends, spoilage, and obsolescence.

    Product expiration: If your brand offers time-sensitive goods or perishable items, overstocking can lead to product obsolescence and expiry. eCommerce platforms that also sell time-sensitive goods or grocery delivery apps are forced to sell products at below-margin prices to free up resources, leading to losses. 

    What are the effects of understocking?

    Poor customer experience: Poor product availability will lead to low customer satisfaction & dropping customer loyalty. 

    Missed sales: Customers could gravitate towards the competition to make their current purchase if a product is unavailable at your online store. The more freequent the stockouts, the more lost sales. 

    Conclusion

    To avoid the knock-on effects of overstocking and understocking, companies need a real-time view of their inventory, both online & offline. At DataWeave, we help companies decrease their latency period between stock replenishment and efficiently plan their supply chain. If you need help tracking your eCommerce product availability, reach out to the experts at DataWeave to know how we can help!

  • Top 7 strategies to sell effectively on Amazon

    Top 7 strategies to sell effectively on Amazon

    According to MarketingCharts, 63% of online shoppers start their buying journey on Amazon. This shows that customers believe they will find the products they are looking for with competitive prices and excellent customer service on Amazon. Amazon is one of the most dominant eCommerce marketplaces with 197 million users and 112 million Amazon Prime members. Brands can sell on Amazon to capitalize on this vast customer base by showcasing and promoting their products properly. 

    In this article, we’re going to take a look at the top 7 strategies to sell effectively on Amazon:

    1. Boost Product Discoverability using Ads

    Amazon Advertising helps sellers, brands, and agencies to drive profitability by making sure product discoverability is high & shoppers are able to find their brand with ease. The ads on Amazon fuel product discovery and improve conversion rate. The advertising options on Amazon are designed to help brands increase exposure, generate incremental sales, boost organic rankings, and drive growth.

    Amazon has three PPC programs: sponsored product ads, sponsored brands ads, and sponsored display ads. Brands can increase visibility on Amazon with these three paid campaigns. You can sponsor products or your brand for related searches on Amazon. Businesses only pay for clicks received. 

    Sponsored products are for individual product listings that appear on shopping results pages and product detail pages. Sponsored brands are for showcasing brand portfolios such as logo, custom headline, and a selection of products on the shopping results page. The last is sponsored display, a self-service advertising solution for displaying ads on and off Amazon. 

    Promotions for Brand and SKU's
    Promotions for Brand and SKU’s

    2. Improve your Amazon SEO using effective Product Descriptions

    To effectively sell on Amazon, businesses first have to understand the A9 algorithm. Amazon uses A9 Algorithm to decide which products are ranked in search results, emphasizing sales conversions. This algorithm helps Amazon promote listings that are more likely to result in sales. 

    Keywords in product descriptions are one of the main driving factors that the Amazon A9 algorithm looks for in determining relevance to search queries and setting rankings on its results pages. Therefore, brands must integrate high volume and significantly relevant keywords as part of their listings. Crafting product descriptions with the right keywords will provide compelling reasons for buyers to purchase the product and for the A9 algorithm to better rank the brands. Brands can analyze and optimize their content to improve discoverability across Amazon. Accurate product descriptions help users make informed decisions and allow brands to deliver a consistent customer experience.

    Detailed Descriptions and Highlights
    Detailed Descriptions and Highlights

    3. Improve your Product Visuals

    Avoid using standard visuals when displaying your products in Amazon’s image gallery. Product images are the hook that encourages visitors to click on your products. However, Amazon has specific image requirements that you’ll need to adhere to while presenting products. When shopping on Amazon, potential buyers are looking for high-definition and clearly visible photos. Thus, you will need diversity in images if you want your product and photos to stand out.

    In addition to images, brands can make their product descriptions better through video content. Videos help your brand to stand out, build a more personal relationship with customers, and lead to increased sales. One study on eCommerce sellers found that using product videos increases sales for online stores by 144%.

    Product Images
    Product Images

    4. Switch to Intelligent Pricing & Win the Buy Box

    Intelligent and competitive pricing is the most essential lever for revenue growth. With advanced technology like AI and analytics, brands can get insights into competitive pricing and develop an intelligent pricing strategy to calculate real-time changes in pricing optimally

    Amazon wants to give the consumer the best value for their money and thus has a Buy Box option. The white box on the right side of the Amazon product detail page is called the Buy Box, and customers can directly add items for purchase to their cart. However, not all sellers are eligible to win the Buy Box. 

    Thanks to Amazon’s customer-obsessed approach and high competition, only businesses with excellent seller metrics have a chance to win a share of Buy Box. Amazon weighs low prices with high seller metrics. If your brand has near-perfect performance metrics, having higher prices can still get you a share of the Buy Box. In contrast, brands with mid-range metrics will probably need to focus on offering the most competitive price.

    But, why is the Buy Box important? According to BigCommerce, 82% of sales on Amazon go through the Buy Box, and the rate is even higher for mobile purchases. Getting insights into your competitor’s pricing with our Digital Shelf Solution will help you improve seller metrics and find the right pricing strategy for your products.

    5. Provide Plenty of Social Proof

    Testimonials can increase sales page conversions by 34%. Social proof has emerged to be of great importance in the eCommerce world, and it isn’t limited to recommendations from people customers know in the “real world.” A survey conducted by BrightLocal revealed that 31% of consumers reported that they read more online reviews in 2020 than ever due to Covid-19. 

    Product ratings and reviews on Amazon are at the center of the recommended products section, product listing page, and search results. Interestingly, customer feedback also has a huge impact on a brand’s ODR or Order Defect Rate. It is one of the most critical measurements tracked by Amazon. ODR is a measure of customers who have had a negative experience with you as a seller. Amazon uses it to assess a brand’s health as a seller. The ODR indicator is driven by customer feedback, so review management is the primary step for brands to avoid an Amazon ODR warning and improve their order defect. 

    6. Go Global

    The Amazon marketplace is available in countries and markets worldwide, allowing brands to explore new territories and sell their products globally. Each foreign territory has a unique Amazon site that resonates with its culture and audience, making it easy for global sellers to compete with other brands. If your eCommerce brand has the operation capacity to expand globally, Amazon offers state-of-the-art international logistic capabilities. 

    Brands can expand in European countries like France, Italy, Netherlands, Germany, Spain, etc., and Asia Pacific locations like India, Japan, and Australia. Amazon is also available in emerging eCommerce locations like the Middle East, Brazil, Turkey, and Singapore. 

    7. Build a Branded Store

    One of the best strategies to stand out on Amazon is to feature your products on a branded Store. Amazon has free tools that allow grants to build an online store where brands and sellers can showcase products and connect with customers. These stores look different from the typical Amazon listing layout and also have the option to create detailed pages with A+ content. 

    Build your Brand Page
    Build your Brand Page

    For instance, Netgear, a company that offers technology-related products has an excellent branded store on Amazon. The brand has embedded images and videos that address buyers’ needs and how users’ lives are affected by using their products. The most attractive feature about this store is that they have integrated the value offered by their products into new use cases because of the current pandemic. For example, they’ve used phrases like “Make Online Learning fast and fun” and “Work from office at office speed.” Additionally, the categories and search tab help buyers search for specific products easily.

    Creating branded stores allows you to build a beautiful brand experience for customers and offers a multi-page, immersive shopping experience. Brands can pick unique designs, integrate promotions, and use rich media to create a custom curation of handpicked products. 

    Conclusion

    Amazon has 9.7 million sellers worldwide, of which 1.9 million are actively selling on the marketplace. The competition on Amazon is fierce, and it’s continuously increasing. Despite a large number of active sellers on Amazon, only a tiny fraction generates a significant portion of its total sales. Fewer than one in ten active Amazon sellers generated over $100,000 in annual sales, and only one percent of them hit the $1 million sales mark. Use these strategies to develop a comprehensive understanding of the Amazon platform and how to sell effectively on the platform while maximizing your presence amid rising competition. 

  • UK’s Biggest Sale Days: What we saw in 2021 and trends for 2022

    UK’s Biggest Sale Days: What we saw in 2021 and trends for 2022

    Customers love discounts, and promotions are the most effective tool to attract shoppers and increase sales during the holiday season and clearance sales. According to a survey, 76% of UK customers look for discounts before purchasing a product. Promotional discounts encourage customers to try new brands. And this is why brands often have a special coupon for first-time users. 

    According to Software Advice, discounting tops the pricing strategy for retailers across all industries. It is preferred by 97% of survey respondents over other promotional strategies

    Share of Respondents
    Share of Respondents

    Retail Trends in the UK for 2022

    The arrival of the Omicron variant in December 2021 slashed the shopping mood of UK customers and led to a 3.7% monthly drop in retail sales, but sales were still higher than February 2020 levels when Covid-19 first hit worldwide. Sales during the holiday season in 2021 took a hit due to a consistent decline in product availability and an increase in prices.  Inflation too started to rise in 2021 and is expected to increase by 7% by spring 2022. However, despite inflation, retail sales jumped back in January 2022. In fact, it is predicted that inflation will be a key driver of sales growth, with underlying demand across categories being uneven. Keeping that in mind, let’s look at sales growth across categories in 2021 and projected growth in 2022.

    Category Breakdown: Sales growth 2021/22
    Category Breakdown: Sales growth 2021/22

    Discounting Trends we saw in the UK in 2021

    Methodology

    • We tracked prices on the three biggest Sales Days in the UK
      – Amazon Prime Day, June 21st & 22nd 2021
      – Black Friday, Nov 26th, 2021
      – Cyber Monday, Nov 29th, 2021
    • Categories tracked: Beauty, Fashion, Electronics, Home Improvement, Furniture 
    • Websites tracked: Amazon UK, OnBuy, eBay UK, Etsy, Wayfair, Selfridges, John Lewis

    Prime Day, Black Friday, and Cyber Monday are three of the biggest sales days with comparable discounts. However, according to new research, in 54% of cases, it depends on the category of product you’re after that determines the volume of discount you get. For example, tech items such as smartphones, laptops, games consoles, smartwatches, and wireless speakers were cheaper on Black Friday but may not necessarily have been cheaper on the other sale days. 

    We wanted to see which sale period had the most number of products on discount during the three big sale events. We also wanted to see which of those three sales would’ve been the best for consumers to get a higher section of products at a discount. 

    How Big were the Discounts?

    Discount across 3 key Sale Days
    Discount across 3 key Sale Days

    32% of products went on discount during Black Friday, 35% on Cyber Monday, and only 6.6% on Prime Day. One factor contributing to the low Prime Day percentage is the fact that not all retailers participate in discounting wars during Prime Day since it’s an exclusive Amazon-only sale. Customers looking for the best deals would’ve gotten them during the holiday season with a combination of the Black Friday & Cyber Monday sales. 

    Another interesting thing to note is the percentage discount – on Prime Day, only 0.2% of products had a discount of over 50% of all the discounted products. While on Black Friday & Cyber Monday that number was 1.7% & 1.3% respectively. 

    In conclusion, more products were offered at a discount on Black Friday & Cyber Monday; and the total percentage discount on those products was also higher.

    Which Categories had the Maximum Discount?

    Discounts by category
    Discounts by category

    On Black Friday, an estimated 47% of consumers in the UK planned to shop for electronics, whereas 40% of customers planned to shop for clothing and footwear during Black Friday to Cyber Monday.  The top-selling categories across the 48 hours of Amazon UK’s Black Friday 2021 sale included Home, Toys, Beauty, Books, and Health & Personal Care.

    Our data shows that Categories with the highest discounts were Beauty and Electronics with the highest discount on all 3 sale events. These 2 categories had discounts on over 40% products on Black Friday & Cyber Monday while categories like Home Improvement were in the 30 – 35% range, Furniture in the 27 – 32% range and Fashion has the least products on discounts at a little over 15%

    In the fashion category in the UK, Amazon UK offered the highest percentage of items with a price decrease (31.6%), whereas eBay offered the most significant magnitude of price decrease (14.3%). 

    Which UK Retailers gave the most discounts?

    OnBuy is an emerging marketplace in the UK that offers impressive discounted prices and is taking on top UK marketplaces like Amazon. It’s ranked Britain’s fastest-growing eCommerce platform in 2020 and also the fastest grower by traffic. The low listing fees starting at 5% allow sellers to competitively price their products, making them more accessible to a greater number of buyers with huge discounts. The most prominent deals and discounts are highlighted on the landing page and featured across OnBuy’s social pages to grab the audience’s attention. 

    Discounts by Retailer
    Discounts by Retailer

    This was clearly reflective in the data we gathered from the 3 big sales in 2021. Most retailers in the UK, including Amazon offered at best 20% of their products, in the categories we tracked, at discount. The only outlier was OnBuy – OnBuy offered close to 90% of their products at discount! 

    OnBuy was able to offer a comparatively high number of discounted products than their competition because the magnitude of the discount was much much lower. The platform offered minimal discounts; out of the 90% of discounted products, 80% of those products had discounts that were less than 10%. As opposed to other retailers who had under 7% of their products on discounts of less than 10%.

    OnBuy’s discounting strategy built a perception that they were the biggest discounters, even when the discounts were not as deep.

    Black Friday v/s Cyber Monday – which one was better for holiday shoppers?

    Discount by category- Black Friday VS Cyber Monday
    Discount by category- Black Friday VS Cyber Monday

    Black Friday kicks off the holiday shopping season and is synonymous with some of the most significant sales after Thanksgiving. But until recently, Cyber Monday has become a great way for eCommerce retailers to capitalize on holiday discounts and expand their most beneficial sales events of the year.

    In 2021, retailers pulled in $8.9 billion in Black Friday online sales and a total sales of $10.7 billion on Cyber Monday. In the YOY review, Black Friday saw a decline of 1.3% from 2020’s record of $9.03 billion, and Cyber Monday saw a drop of 1.4%, only $100 million shy of $10.8 billion in 2020. 

    Across Beauty, Home Improvement, Electronics & Furniture categories, we saw that more products were on discount on Cyber Monday v/s Black Friday. However, the opposite was true for the Fashion Category. In the Fashion Category, we saw a marginally higher number of products on Discount during Black Friday than Cyber Monday.

    Discount percentages across categories
    Discount percentages across categories

    Across both sales, the Electronics category offered the highest discounts at over 40% of products discounted compared to other categories on both Black Friday & Cyber Monday. However, a very small fraction of the products had a discount of over 50%, indicating the lack of ‘BIG blockbuster deals’ in this category. At the same time, the Fashion category offered the least number of deals with less than 20% products on discount, but the highest magnitude of discount across the board! On Black Friday, 3.8% of products had discounts higher than 50%, and 2.6% of products on Cyber Monday. In most other categories, between 1 – 1.5% of products had over 50% discount. However, Fashion brands offered more than 50% discount on 2x the average number of products on both sale days.

    Why did the Fashion Category offer such high discounts? Brands are now capitalizing on customers’ need for instant gratification in the age of see-now, buy-now fashion trends by offering their products at high discounts. It also allows them to quickly eliminate overstock. However, this has given rise to fast fashion, a trend that focuses on rapidly producing low-quality clothes in huge volume. Fast fashion focuses on replicating trendy pieces like streetwear and fashion week designs, not four times a year but every week, if not daily. Fast fashion promotes brands to manufacture and sell low-quality merchandise that goes out of trend as soon as buyers wear it once. There is little to no time for quality control, and pieces are thrown away after a few wears. In the UK alone, 300,000 tonnes of used clothes are buried or burned in landfills each year. However, every element of fast fashion from rapid production, competitive pricing, to trend replication has a detrimental impact on the planet.

    Conclusion  

    The effects of COVID-19 can be seen far and wide in the UK retail industry, especially with a steep rise in inflation. Fortunately, even though retail sales in the UK declined during the 2021 holiday season due to the Omicron variant, they increased during Black Friday and Cyber Monday. Sales also jumped back in January 2022 and are further projected to grow by 5% in 2022. Additionally, brands can sustain the impact of disruptive factors throughout 2022 by ensuring their Digital Shelf is updated and flexible enough to react swiftly to both threats and opportunities in order to maximize the chances of success. 

    Reach out to the team at DataWeave if you’d like to make smarter pricing & discounting decisions with up-to-date competitive insights. 

  • Beauty & Grooming Brands that are dominating on Amazon India

    Beauty & Grooming Brands that are dominating on Amazon India

    Growing awareness of personal hygiene and changing lifestyles has contributed to a significant development of India’s cosmetics, beauty, and personal care products. The Indian cosmetic industry reached a value of USD $26.1 bn in 2020. The major boom in sales is because of rising digitization, social media marketing, and the advent of eCommerce beauty platforms. However, the increase in demand and technological advancements has led to a competitive landscape for Indian and international brands competing for digital and physical channels. As of February 2019, 18.92% of respondents spent between 700 to 1700 rupees, and 43.9% spent up to 700 rupees monthly on cosmetics and personal care products in India.

    Personal care products in India
    Monthly spend on Personal Care Products in India

    Shattering stereotypes and gender norms, India is also seeing a revolution in the male grooming industry, which is expected to reach INR 319.82 bn by 2024. The D2C market is expanding beyond metropolitan cities, and at present both D2C brands and startups have launched over 177 new products for men. “We realized there is an opportunity to create India’s first experiential brand exclusive for men,” says Hitesh Dhingra, Co-founder, The Man Company. He adds ecommerce business has grown almost by 200 percent. In a similar vein, Shantanu Deshpande, founder, and CEO, Bombay Shaving Company, concurs and adds the pandemic boosted online sales. He says that it has become easier for the company to compete with big brands on marketplaces like Amazon and Flipkart.

    With the onset of the pandemic, it has become more and more important for these D2C brands to have a strong digital presence and an even stronger Digital Shelf when selling on platforms like Amazon, Flipkart, Nykaa, and the likes. On these marketplaces, brands need to track critical KPIs like product discoverability, stock status & availability, reviews and ratings, pricing & promotions to make sure they’re optimizing product performance across all online channels to amplify their eCommerce growth. 

    So which beauty and grooming brands and categories have a strong Digital Shelf and are dominating on Amazon? Let’s take a look. 

    Men's Grooming Brands and Categories Categories
    Men’s Grooming Brands and Categories

    Methodology

    • We tracked the first 250 products on Amazon against certain keyword searches specific to India’s Beauty & Grooming space. 
      – Keywords specific to women’s grooming: anti-aging Cream, Face Mask, Paraben-free Shampoo, Onion Hair Oil, Body Wash, Moisturizer
      – Keywords specific to male grooming: Beard Oil, Hair Wax for men, Shaving Cream, After Shave Lotion, Beard Trimmer
    • Share of Search (SoS) – The percentage of products that appeared on the search results page on Amazon belonging to a brand against a specific keyword or category. 
    • Data Scrape time period: From 14th Oct 2021 to 10th Nov 2021

    THE BEAUTY IS IN THE DATA

    On Amazon, brands use sponsored ads to increase visibility and drive more sales. When we looked at the product category with the most aggressive ad spends, products in the men’s grooming category came out on top and had the maximum number of sponsored products. 26% of beard trimmers were sponsored, followed by Beard Wax and Beard Oil at 25%. During the lockdown, more men started searching online for new products and watching instructional videos on how to groom their beards or how to get a salon-like shave at home. Demand for razors and trimmers is up by 50% compared to last year,” said Sidharth S Oberoi, founder and CEO, LetsShave. In contrast, we saw that only 11% of after-shave lotions and 15% shaving creams were discounted. 

    Sponsered Items per Product Category
    Percentage of Sponsered Items per Product Category

    For women, we saw a similar trend. 24% of products in the Paraben-free Shampoos and Onion Oil category was sponsored. In contrast, only 5% of anti-aging creams were sponsored. Additionally, 21% of products in the face mask category and 23% in body wash were sponsored. 

    Competition is fierce in these categories, making an artificial boost necessary for increasing discoverability. In fact, we saw that the competition was the fiercest in the face mask category, which had the highest “1st Page Change Rate.” It is an indicator of how much the results on the 1st page for a particular keyword change from time to time. This reflects higher competition and brands constantly updating their digital shelf KPIs to ensure their products appear on page 1. One of the biggest reasons why brands need to constantly gauge their online visibility is to track their sponsored & organic ranking compared to competitors.

    Driving sales using a smart Discounting Strategy

    Price can play a big role in the final purchase decision. So we looked at two things wrt price across all these beauty & grooming products.

    • Which product Category had the maximum number of products on discount? 
    • … & how large were these discounts? 
    Products on Discount
    Percentage of Products on Discount

    We saw that almost 55% of products in the body wash category & 46% of anti-aging creams were available at a discount. Beard Oil & Onion Hair oil had the least number of products discounted at 29% each.

    Magnitude of Discount
    Magnitude of Discount

    How high were these discounts? Let’s take a look.

    The highest discount was seen in the beard oil and moisturizer category, with an average discount of 17% across all products. The average discount trend across most product categories ranged between 14 to 17%, so we did see some consistency there.

    Digital channels provide transparent insights into pricing & promotions, which is why customers are constantly comparing prices across various brands before making a purchase. This is why it is crucial for brands to remain competitive by tracking & comparing promotional strategies with those of their rivals. 

    To Review or Not to Review?

    Consumers worldwide don’t make a purchase decision without reading online reviews. Online reviews and ratings have become a significant milestone in the modern consumer shopping journey, and eCommerce brands can leverage reviews as valuable sales tools. Given a choice between loyalty programs, discounts, reviews, and free shipping, online shoppers say reviews are the most important factor while making a purchase. Consumers trust user-generated content (UGC) more than product information and videos created by brands.  

    Number of  Reviews per  Product Category
    Number of Reviews per Product Category

    We looked at product reviews to check consumers of which categories are actively sharing their experience and found that three categories stood out — beard trimmers, moisturizers, and paraben-free shampoo. At the same time, beard oil was the product category with the least number of reviews. 

    Companies can build consumer trust by identifying and acting on negative feedback. But in order to do that, they first need to de-code and understand the collective sentiment behind these reviews. DataWeave’s AI-Powered solutions can help brands break down & analyze online reviews and give them a wealth of insights to enrich their market research as well as create a seamless customer experience.

    UNDERSTANDING THE COMPETITION ON AMAZON

    When selling on Amazon, brands need to make sure shoppers find their products with ease. Keyword searches are the top ways consumers discover and find products across eCommerce sites. We tracked search visibility for the following keywords to see which brands had the highest share of search and appeared on the 1st page on Amazon. 


    Be in any product category – moisturizers, shampoo, anti-aging cream, Mamaearth & WOW featured against most keywords, showing popularity among customers. WOW Skin Science raised $50 million in April 2021, and Mamaearth raised $50 million in July 2021. These two fresh-faced brands have built credibility among health- and environment-conscious users. They are big competitors when it comes to natural and toxin-free products. It’s their high product visibility in multiple categories that is likely leading to better discoverability, higher sales & increased valuation, and brand value. 

    Beauty and Grooming Brands
    Rankings of Top Brands in various cosmetic categories- (A)

    In the male grooming space, we observed that established brands like Nivea, Old Spice, and Park Avenue had a lower share of search than new D2C brands like Beardo, The Man Company, Bombay Shaving Company, and Ustraa. Here’s clear proof of concept that brands need to evolve and adapt their Digital Shelf to selling online if they want to beat the competition

    Beauty and Grooming Brands
    Rankings of Top Brands in various cosmetic categories– (B)

    Who were the Amazon Bestsellers?

    Products on Amazon that have the highest sales in their respective categories are called Amazon Bestsellers. The Amazon Bestsellers rank is based on product sales and sales history where the list undergoes an hourly update. The bestseller ranking or bestseller badge is available in the product information section on the product page. The rankings are determined by comparing sales and historical data with products in the same category or subcategory. 

    Brands can make it to Amazon’s bestseller list by optimizing their listings, encouraging reviews, and listing products in the relevance of categories. Although Amazon does not consider reviews for product ranking, they help users convince them to buy your product. 

    Here are the Brands we say that made it to #1 on the Amazon BestSeller List for the following product categories.

    Amazon Bestseller List
    Amazon Bestseller List

    Gillette made it to the top in the aftershave lotion and shaving cream category, while D2C brands Ustraa made its mark bearing number 1 on Amazon Bestseller list for hair wax for men and beard oil. 

    Amazon Bestseller List
    Amazon Bestseller List

    Products from Nivea and L’Oreal made it to #1 seller in 2 categories each. Interestingly, in the Paraben-Free shampoo category, when D2C brands like WoW, Mamaearth have a stronger value proposition, traditional brand L’Oreal had the best-selling product. 

    L’Oreal must’ve pulled various levers and built a robust Digital Shelf to get to the top – from optimizing their content, ensuring product availability, tracking ratings and reviews, and proper competitive pricing. 

    Conclusion

    An increase in new D2C brands in popular and trending categories has led to increasing competition. Unless a brand can position itself in front of the target audience and command their attention right away, another brand can step in and grab the sale. Do you know if your brand is prepped and ready to make an impact on marketplaces like Amazon? Or simply just wondering if your Digital Shelf is optimized with the right price, discounts, reviews, and keywords? Our team at DataWeave can help! Reach out to our Digital Shelf experts to learn more!

  • Win Search. Win the Digital Shelf this Holiday Season!

    Win Search. Win the Digital Shelf this Holiday Season!

    With the holiday shopping frenzy right around the corner, brands need to do everything they can to win their customer’s share of wallets. ‘Tis the season shoppers have longer shopping lists and will likely buy products they’ve never purchased before for gift giving. This makes it even more critical for brands to make sure they make it easy for shoppers to find their product at the time right time, with the right deals and discounts.
    Watch the webinar with Karthik BettadapuraCEO, Co-Founder at DataWeave & Vladimir Sushko– E-Retail Director at Anheuser-Busch InBev & learn about the key levers brands need to pull to get their Digital Shelf ready for the Holiday Season

    Let’s start with Product Search…

    Search Optimization

    Organic levers you can pull for Search Optimization

    Key Highlights:

    • Product content is not a one-time fix. It’s seasonal. Seasons change and so does your product. Your content needs to reflect these dynamic changes. 
    • Fact – Search rankings drop when product availability starts dipping.
      Lesser known fact – even after stock replenishing, your search ranking does not bounce back immediately. The opportunity cost of dwindling product stock is high. 
    • Being optimized for the right keyword is good. Being optimized for the right keyword, with a higher ranking than your competitor is great
    • Ratings & Reviews have a large correlation with search ranking and impact on sales.

    We then asked the audience what factors they thought had the biggest impact on search rankings… 

    Search Ranking

    Listen to the experts answer questions that have been on everyone’s mind this Holiday Season! 

    Win Search Wn the Digital Shelf
    • Vladimir: How do you approach Search at Ab InBev? 
    • Vladimir: Favourites have an impact, but is this something you can influence? If yes, how?
    • Vladimir: When it comes to growing your online sales via marketplaces what’s the one lever you pull most aggressively?
    • Karthik: Optimizing Share of Search on Marketplaces v/s traditional online retailers 
    • Vladimir: What organic efforts do you use to improve your share of search?
    • Vladimir: When it comes to sponsored search do you use an always-on strategy or are ads spent strategically? 
    • Karthik: Sponsored or Organic? What’s your advice to brands? 
    • Vladimir: Are you tracking your competitor’s Digital Shelf? 
    • Karthik: Which competitor KPIs do you recommend brands should track?
    Bonus Content

    Vladimir: What’s your strategy to make sure you have a high share of search during Christmas – the busiest shopping season. 

    Karthik: What’s your advice for brands for the festive season?

    Click here to register for the On-Demand Webinar

    Do you know if your brand is prepped and ready to make an impact during the biggest holiday season of the year? Or simply just wondering if your Digital Shelf is optimized with the right price, discounts, reviews, and keywords? Our team can DataWeave can help! Reach out to our Digital Shelf experts to learn more.

  • Gold, Gift Hampers & Gadgets – brands that sparkled this Diwali!

    Gold, Gift Hampers & Gadgets – brands that sparkled this Diwali!

    The festival of lights symbolized the victory of light over darkness, good over evil & knowledge over ignorance. Over the years, Diwali has become all that and more. It has single-handedly become the biggest shopping season in India! Splurging on a new Smart TV or Fridge, or a furniture upgrade at home has become customary during Diwali. Not to forget buying gold and gifts for all your loved ones! 

    As more and more people are doing their Diwali shopping online, we decided to look at the data, see what people were browsing and buying. And more importantly, which brands spruced up their Digital Shelf & put their best foot forward this Diwali Season. 

    Methodology

    • We tracked the first 250 products on Amazon & Flipkart against specific keyword searches & product categories. 
    • Share of Search (SoS): The percentage of products that appeared on the search results page on Amazon or Flipkart belonging to a brand, against a specific keyword or category. 
    • Dates of Crawl during the Flipkart Big Billion Day / Amazon Great Indian Festival.
      – Pre-sale period: 1st October 2021
      – Sale Period: 3rd to 10th October 2021
      – Post Sale Period: 11th – 18th October 2021

    India’s E-Commerce Gold Rush

    YouGov reported that almost three in ten urban Indians (28%) are planning to spend on gold in the next 3 months. Seven in ten (69%) of these prospective gold buyers agreed with the statement, “Diwali is the best time to buy gold”, highlighting their inclination to spend during the festive season. Also, the same survey showed that Tanishq was the most trusted gold brand. With Kalyan Jewellers, Malabar Gold & Diamonds and PC Jewellers also making it to the top 5 list.

    E-Commerce Gold Rush

    While traditionally Gold was mostly sold offline, that trend has fast changed. We tracked brands that had the highest Share of Search against the keyword “Gold Coin” on both Amazon & Flipkart to see if Tanishq, Malabar Gold, PC Jewellers – the big trusted names in jewellery were making their mark online. 

    Search Insights for Gold Coin
    Search Insights for Gold Coin
    • On Amazon, MMTC-PAMP (a joint venture between Switzerland-based PAMP SA & MMTC Ltd, a Government of India undertaking) and Kundan had the highest visibility for the keyword “Gold Coin” at 10%, followed by Malabar Gold at 9%. (Refer to above graph of Search Visibility on Amazon)
    • MMTC-PAMP used the help of Sponsored ads to get this visibility. They sponsored 9 products during the sale, while ACPL, the largest supplier of silver in India sponsored 26 products and New Delhi-based PC Jewellers sponsored 12 products. (Refer to above graph of Sponsored Products on Amazon)

    As recently as 2 weeks ago, MMTC-PAMP launched their e-commerce portal following in the footsteps of other jewellery brands. According to a report by the World Gold Council, the jewellery industry went through a massive slowdown amid the pandemic and prepping their e-commerce & digital strategies are likely going to be the only way forward.

    • On Flipkart, PC Jewellers, Malabar Gold & Kundan occupied the top 3 spots on the search results page. While PC Jewellers sponsored 12 products on Amazon, on Flipkart they sponsored zero. Malabar Gold on the other hand sponsored a whopping 25 products on Flipkart! Interestingly Malabar Gold sponsored no products on Amazon for the keyword Gold Coin. (Refer to above graph of Sponsored Products on Flipkart)

    Unboxing the love – Branded Diwali Gift Hampers

    Branded-Diwali-Gift-Hampers
    Branded-Diwali-Gift-Hampers

    Now let’s talk about Diwali Gifts. How often have you thought of buying someone a Diwali gift but had absolutely no idea what to get them? You’re not alone! A lot of consumers would simply run a search for “Diwali Gift Hampers” or Diwali Gifts” in the hope to stumble across a great gifting idea and make an instant purchase! Smart brands who know this make sure their products have organic or sponsored visibility against these keywords

    On Amazon, Tied Ribbons, a D2C gift and Décor company had the highest number of Sponsored products (15) against the keyword Diwali Gift followed by the iconic Brand Archies with (14) products.
    Flipkart had a whole bunch of smaller brands and sellers optimizing their products for this keyword. Some bigger, more known brands like Chaayos, Cadbury, D2C Tea brand Vahdam did have visibility for the keywords “Diwali Gift Hampers/ Diwali Gifts” but they were way down on the list, at the bottom of the search results page, or on Page 2.

    Was this a missed opportunity for them?

    Give your home a festive upgrade!

    Diwali is a perfect time to upgrade or buy new electrical appliances for your home. Great prices, new product launches, and an unmatched festive feeling make it even more ideal to make new purchases. If you’re eyeing smart innovative electrical appliances for your home this year and decided to go make your purchase during the Flipkart Big Billion Day or Amazon Great Indian Festival, let’s take a look at which brands made sure they showed up right on top in your online search. 

    We tracked search visibility for 5 keywords in the home appliance space – Smart TV, Washing Machine, Microwave, Air Conditioner & Refrigerators to see which brands had the highest share of search

    Brands with the highest Share of Search on Amazon
    Brands with the Highest Share of Search on Amazon
    • On Amazon, both Samsung & LG had high visibility across all products except Air Conditioners!
    • For ACs, Voltas had the highest share of search even though they sponsored 0 products! And that’s definitely noteworthy. So what really gave them the edge and put them in this winning position?

    We took a look at their product reviews to draw an analysis. Voltas ACs had close to 10k reviews! The highest in the AC category. Ratings & Reviews play a key role in helping brands drive their Digital Shelf experience. Customers trust user-generated content more than information brands share with them. Also, Amazon’s A9 algorithm prioritizes products with better reviews & shows them higher up in search – a low-cost & organic way for brands to get to the top without spending money on Sponsored ads!

    Most loved AC brand
    Most loved Air Conditioner brand
    • When it comes to washing machines, Lloyd & White Westinghouse (trademark by Electrolux) sponsored the maximum number of products in the category, this gave them the highest Sponsored SoS (13%) on the first page. 
    • While their sponsored visibility was high, their overall SoS was low which is why they didn’t organically feature in the top 5. Sponsoring products is a great but expensive way to artificially boost product visibility during sale periods. Brands need to go the Voltas route by optimizing their reviews & rating or content, to organically gain and sustain product visibility.

    … & here are the brands that made it to the top on Flipkart.

    Brands with the highest Share of Search-on-FLIPKART
    Brands with the Highest Share of Search-on-FLIPKART

    Gift-worthy gizmos!

    Buy the latest gadgets and pamper yourself this Diwali or gift them to your loved ones! You could be looking to upgrade your laptop, or buying a fancy DSLR or Smartwatch, buying it online may be your best bet. Discounts have dwindled over the years but you may still get the most lucrative discounts online. Let’s look at the discounts offered on Amazon & Flipkart for some gift-worthy gizmos like Laptops, Cameras, Smart Watches & Headphones this festive season. 

    The platform that offered the highest number of products in their catalog at a discount

    Flipkart had the higher number of gizmos on Discount this Diwali

    On Amazon, during the sale, the headphones category offered a 75% of products on discount as compared to the pre-sales period. That number was just around 51% for cameras. Far more number of products were discounted on Flipkart – 87% for headphones & laptops. And cameras 77%. So if you were looking to shop for gadgets around Diwali, Flipkart would’ve been a better bet. 

    Let’s look at which platform offered the highest percentage of discounts on products. 

    Discounts were higher across all 4 product categories!
    Discounts were higher across all 4 product categories!

    Apart from more products being discounted on Flipkart, Flipkart also offered higher discounts across these 4 categories. Discounts were higher across all 4 product categories!  

    Do you know if your brand is prepped and ready to make an impact on a Big Festival Sale Day? Or simply just wondering if your Digital Shelf is optimized with the right price, discounts, reviews and keywords? Our team can DataWeave can help! Reach out to our Digital Shelf experts to learn more.

  • Amazon Prime Day Secrets all Brands need to know.

    Amazon Prime Day Secrets all Brands need to know.

    Prime Day or not, brands need to make sure their Digital Shelf is well stocked, highly discoverable in crowded marketplaces, have the right offers and discounts to stay competitive, all while making sure their products have glowing reviews, ratings and optimized content. While this is a year-round effort, brands go the extra mile on Prime Day to make sure they’re putting their best foot forward.

    Methodology
    To understand how brands adapted their digital shelf for Prime Day, we examined data insights across Amazon in 6 markets and compared the following brand KPIs:

    • Share of voice (SOV): The percentage of a brands products that appear in the search results page for relevant keywords on Amazon.
    • Availability: The percentage of products in stock on Amazon for Prime Day.
    • Additional discounts: The reduction in the listing price of a product during Prime Day compared to before or after the event to see how brands adapted their pricing strategies to stand out from rivals

    Winning brands made sure their products were ‘highly’ discoverable

    With all the global lockdowns, home entertainment hit a new high. So we looked at the word “TV” to see which brand had the highest share against this keyword during the Prime Day event.

    • In the US – Samsung won hands down with close to 15% SOV. LG came in at a not so close 2nd with 9% SOV.
    • In the UK – Samsung won again with a whooping 16.7% SOV with Sharp at # 2 at 12%.

    Now let’s look at some key European markets

    • On Amazon Italy we saw a similar trend – Samsung & LG, neck to neck at 22% & 19% respectively.
    • Amazon Germany was no different – Samsung had the highest SOV at 15% and Philips far behind at 7%.

    Samsung has such a strong association with the keyword TV. This means, when customers are searching for TVs on Amazon in these regions – the brand that has the largest selection up on display for them to choose from is Samsung! That’s definitely going to have a positive impact on sales, don’t you think?

    Do you know which keywords you should be tracking for your brand? And do you know your Brand’s SOV against those keywords?

    … & finally, an outlier!

    • In Amazon France, LG took the lead for a change – with 15% SOV. But we have Samsung not far behind at 13%.

    Kudos to team Samsung!

    Winning Brands kept a close eye on product availability

    Poor product availability leads to lost sales. But not on Amazon Prime Day! Bigger brands that sell over 500 products created artificial scarcity by listing a chunk of products out of stock before the sale. And restocked aggressively during the sale.

    In contrast, the smaller brands that sold fewer than 100 products didn’t dare make such bold moves and stayed stocked up even pre-event to avoid even a single day of lost sales.

    Let’s look at some data from the US

    • The average availability for bigger brands selling 500+ products before the sale was 41% and then went up dramatically to 81.4% the day of the sale when they aggressively restocked.

    Similar trend in the UAE

    • Availability pre-sale was 26.2% and during the sale shot up to 87.6%!

    Various other markets displayed similar patterns. And this was only possible because these brands were able to track their availability with precision and plan their stock levels accordingly.

    How are you tracking your availability across marketplaces? Do you know when your products are out of stock and are in immediate need of replenishment?

    Winning Brands made strategic pricing and discounting decisions

    Discounts matter. Period. And brands that use discounts strategically, win.

    Let’s look at Airpods on Amazon in the US.

    • During the event, Apple had the highest SOV for the keyword Airpod at 7.5% followed by SkullCandy, an American audio accessory manufacturer at 5.6%. 
    • Here’s the interesting part – during the sale Apple offered just 3.4% additional discounts while SkullCandy offered 32.1% additional discount to try and win sales from Apple. And looks like it worked! Apples SOV dropped from 13.5% before the event to 7.5% during the event and SkullCandy’s SOV improved 

    Now let’s look at the same data cut in the UAE – a market where Apple products have a fair penetration, but not as high as in the US. They needed a more aggressive discounting strategy in this market.

    • In the US, during the sale, Apple offered additional discounts on just 30% of products. However, in the UAE that number rose to 90% – a clear strategy to make their product pricing more attractive to customers to win sales

    Discounts and markdowns aren’t always the answer to improving sales, but when used strategically can drive significant impact to your bottom line.

    Are you tracking your competitor pricing? Do you know if they’re keeping tabs on your pricing strategy to get ahead of you?

    Winning Brands made it to the Amazon Best Seller list

    Amazon Best Sellers are products that have the highest sales on Amazon. Products with a higher Amazon Best Seller Rank have higher sales.

    • In the US, Nintendo had the highest share in the Electronics Best Seller category during the sale at 18.6%. Before the sale their share stood at 22.5% – so they lost ground a little ground with a 27.2% drop in their Best Seller share. While they gave additional discounts of 17%, only 27% of their catalogue was discounted.
    • But here’s a brand that knocked it out of the park! The Razer had an SOV of just 1.18% before the sale and during Prime Day it shot up to 6%! A clear indication that sales for the Razer spiked exponentially during Prime Day. Could this be because Razer offered 100% of their catalogue on an additional discount of 31%? It’s a bold move that could have paid off and contributed to super high sales. 

    Now let’s look at France – the Fashion Capital of the World and which brand came out on top in the Fashion Best Seller Category

    • Footwear brand Havaianas had the highest SOV on Prime Day (13.48%) Not too surprising because before the sale they were at 14.09%
    • Now let’s look at the Best Seller Rank – Lacoste secured BSR #1 at the event. Pat on the back for them because before the sale they were at Rank 46! And post-sale they dropped to #6. Definitely a combination of techniques involved here that got them from #46 to #1 at super speed!

    What techniques have you tried to boost sales for your products on Amazon?

    Brands that do not optimize their Digital Shelf risk losing out on their share of basket. If you’ve been thinking about how to optimize your Brands Digital Shelf, then get in touch & learn how DataWeave can help!