Investing in e-merchandising or additional marketing ?

Investing in e-merchandising or additional marketing ?

Hi,

Let’s launch our summer column with articles aiming at giving you e-merchandising best practices and strategic cases. Time to reduce your bounce rate and grow your sales by improving your e-merchandising!

Every week, we’ll tackle a specific issue and suggest ways to enhance it, by asking the right questions or implementing the right advice and solutions :

-Product display, pricing, assortment, image : What are the e-merchandising tools and their purpose?
-Focus on merchandising tools :

  • Ergonomy
  • Pricing & Promotions
  • Assortment, catalogue display and personalisation
  • Landing page
  • Category page
  • Product page
  • Basket page

-Big data and Merchandising

  • Whats the potential of real-time Big Data analysis?
  • How to use Big Data reporting to create value?

Of course, you can always considerinvesting more in marketing and growing your traffic to increase sales… but wouldn’t you rather convert the traffic you’ve already invested in?

 

Business case : e-merchandising vs. additional Marketing

Let’s say you’re an e-merchant with :
-1M visitors per year
-1M€ turnover with

  • 2% conversion rate
  • 50€ basket size
  • 80 k€ marketing costs per year

 

You must now choose between investing additional 6k€ in marketing (7.5% of the current budget) or use this cash to create a merchandising strategy. What would ou do?

1st Case : 6k€ Additional marketing

You’ll get a maximum of 7.5% sales growth.

2nd Case : 6k€ in e-merchandising

You’ll get ate least 13% growth in sales, with an ability to impact margins level and other costs.

Next week, we’ll start with the practical advice!

Ezako team

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