By keeping the assortment per product category small, it is easier to manage inventory, create scale and reduce marketing costs for photos and videos.
Because we now keep our assortment smaller and only focus on the best sellers, it is easier to keep the stock at the right level. It quickly pays off to buy some extra bulk stock of these products, because they are sold anyway. We can also buy larger per article, which allows us to negotiate a better purchase price and we have less costs for creating good product photos and videos. In addition, the number of customer questions decreased considerably, the best choice for the email leads people was already clear. This ensures that the costs are reduced and that therefore ensures more profit!
When the larger assortment does pay off
Of course, reducing the number of products in a category does not apply to all product categories. This also applies to us.
For example, it is noticeable that in the massage oil category, multiple scents and types often provide more conversion. Here, it is all about a smaller purchase amount and a consumer product.
We noticed that in these categories it is very important to come up with something new every now and then, so that people have a reason to order from you again. It is all about a smaller purchase amount and a repeat purchase where people like to try something 'new'. The same goes for coffee, for example. With coffee machines I would choose to keep the range small so as not to create unnecessary choice stress for customers.
Finding the right balance in the number of products within a category, but also the number of categories that we offer, remains a difficult issue. It is constantly weighing the pros and cons against each other. If you look at your conversion rate, return rate and the number of customer questions, then the right assortment, in which you do not give your customers too much or too little choice, can make the difference between black and red figures.