For the past years,online has become much more competitive and retailers are focused increasingly on driving profit.In this new environment, tracking the right measures of success moves from being a “nice to have” to fundamental to online success.
We need to define KPI for analytics for online Retail ,KPIs can answer questions such as:
• Revenues: Are they increasing at the rate you expect?
• Profitability: Are you making a good margin?
• Customer Growth: How many new verses existing customers?
• Product Turnover: How quickly are you moving inventory?
Critical KPIs For online retailers :
Determining the driving factors for a KPI’s performance. Some causes for online selling KPI performance might include:
• Wrong Product: Is your product not wanted? Is it presented poorly?
• Right Marketplace: Are you focusing on the wrong marketplaces? Are you paying too much in fees?
• Ineffective Promotion: Are your promotions reaching the target audiences? Are they utilized in the buying process?
• Order Execution: Do customers abandon their shopping cart in the checkout process?
Actions !!
Depending on your goals and evaluation of your KPIs, there are many possible actions you could take, such as:
• Marketplaces: Change your mix of marketplaces.
• Listings: Use different products and price mixes.
• Customer Service: Create better checkout processes and customer communication.
• Website: Coordinate your website in conjunction with other marketplaces
The delayed gratification that is a feature of all online retailers selling physical goods means that monitoring customer satisfaction becomes critical. One component of this is “delivery on promise” which systematically measures the distribution of orders that arrive before, after or as promised. It is staggering how few retailers actually track it. As retailers increasingly rely on drop-ship vendors or just-in-time suppliers, delivery on promise becomes ever more important.
Growing an online business necessitates a command of the data. And there is a lot of it. Retailers applying traditional retail metrics online will at best sub-optimise, and at worst risk being out manoeuvred by more sophisticated competitors.
Know more about online retail buying and merchandising
More Retail Viewpoints & References: Online retail,smartinsights.com, ecommera.com,
