#ecommerce analytics solution

An effective pricing strategy is crucial for driving sales and staying relevant. With the rapidly advanced technology, companies now leverage pricing intelligence through ecommerce analytics tools and dynamic pricing mechanisms powered by artificial intelligence (AI). Pricing intelligence not only enhances competitive positioning but also maximizes profitability and customer satisfaction, especially on the digital shelf, where visibility and relevance directly impact purchasing decisions. According to McKinsey & Company Report, businesses using pricing intelligence see revenue increase of 5–10%.

What is a Digital Shelf?

The digital shelf is the virtual presentation of products on online retail platforms. Like the physical shelf in a shop, the digital shelf displays the product offer of a brand, prices, promotions, and other product information. A digital shelf is much more complex and dynamic as it cuts across different e-commerce platforms and requires constant updates to remain competitive.

Working in this virtual realm requires keeping track of and analyzing so many metrics to ensure products are salient and provided at the best possible prices.

Pricing is critical on the digital shelf on online retail platforms. According to Harvard Business Review, real-time price tracking can reduce pricing errors by up to 30%.

Pricing Intelligence in USA, India, Saudi Arabia, Dubai.

E-commerce paced up the sale of products largely due to convenience, and quick commerce is boosting these sales through faster deliveries. Earlier online shopping orders were delivered within a week. Then, Amazon introduced two-day, one-day, and same-day delivery, implementing the same approach for groceries or daily need products. Today, Dunzo, Instamart, Zepto, BlinkIt, and other brands have become pioneers in quick deliveries.

Quick commerce refers to the delivery of online orders within 15–30 minutes. The fast-delivery concept was first implemented by Domino’s, and you can recall it if you ever received a free pizza due to a delay in delivery. Quick commerce has rapidly gained the attention of Gen Z and millennials who want to watch their favorite sport or movie at home.

How Quick Commerce Works?

The general concept of Q-Com is that the customer adds products to the basket, and places an order, which is received by the platform, packaged, collected by the delivery partner, and delivered to the customer’s doorstep. Essentially, Q-Commerce is a form of e-commerce; however, the brands have separate warehouses, commonly referred to as “dark stores,” and deliver within 30 minutes. But, initially, Grofers (now BlinkIt) began the concept of fast doorstep delivery by connecting with local retailers.

Also, unlike e-com orders, which often include delivery charges unless a minimum order value is passed, many Q-Com brands offer cheaper cost products in small basket orders with no such fee. Moreover, customers have the option to make orders 24×7, which likely results in impulsive buying during overnight stays, all-night parties, etc.

Challenges Faced by Q-Com Brands and mScanIt Solutions

Keeping An Optimal Price

Globally, 52% of online shoppers make purchase decisions because of the delivery speed, whereas 38% of consumers buy products due to free or discounted shipping. We have already covered that most Q-Com brands offer both of these advantages. Also, the price was the main reason that influenced the shopping decisions of 87% of the consumers in the U.S.

So, it would be safe to assume that when delivery speed and fee are no longer concerns, it will remain the likely choice unless the desired product or its quantity remains unavailable. Under such a scenario, keeping an optimal price becomes a primary concern of the Q-Com brands, and keeping an eye on the competitors becomes necessary. mScanIt helps brands review the price differences across online shopping platforms, resolving one of the biggest issues.

Managing Stock Availability

Stockouts are one of the leading reasons for switching apps, brands, or variants. Also, consumer behavior is rapidly evolving due to Q-Commerce. The changing needs demand managing the growing stock availability and avoiding stockouts.

With rapid orders and impulsive buying heightened, the need to manage stocks at pin code, zonal, platform, sub-category, sub-variant, and other levels becomes important. mScanIt meets these requirements by showing stock availability daily, weekly, and monthly, with real-time insights, while showing competitor availability across online marketplaces.

The analytics deep-dive into stock availability and help brands avoid stockouts at distinct levels to meet the forecasted requirements.

The rapid rise in eCommerce across geographies especially in countries like Indonesia, Thailand, and Vietnam is experiencing rapid growth, with mobile usage and social media penetration being the highest worldwide.

Each country in the SEA region has varying levels of eCommerce penetration and the region’s potential is enormous. Customer behavior is very similar to that of China and Korea where K-pop idols create fashion trends.

SEA has approximately 400 million internet users and platforms such as Shopee, Lazada, and TikTok are leading the way providing customers with an immersive, interactive buying experience that combines social interaction with eCommerce capacity.

The e-commerce market is expected to grow by $234 billion by 2025, emphasizing the need to make data-driven decisions to navigate this battle swiftly.

Every eCommerce participant requires real-time access to actionable business intelligence to meet success metrics. Let’s understand the common types of eCommerce across geographies and the role of eCommerce analytics in striking first and fast in the race.

The world’s biggest digital sale event is inching closer by the day. The month of November marks the beginning of a massive sale season as Black Friday and Cyber Monday are now not limited to the USA, it has become a global phenomenon. Black Friday holiday spending in 2024 will grow 2.5-3.5% YoY in 2024, reaching around $985 billion globally and on expected lines will yield more value for purchase this season.

However, the challenges have also enhanced with growing demand, convenience, and technology. The fiercely competitive e-commerce space now needs brands to gear up with advanced AI-ML-powered tech for intelligence that can boost performance and help ahead in the competitive space.

Also optimizing the entire marketing effort is the key to making the most of this season.

Black Friday 2024 Expectation

Last year in November, $123.5 billion was spent online! Expectations are quite high this season as every brand across the categories of the bandwagon to score high on the Black Friday sale.

Monitor Pricing and Promotions Trends

Brands must be aware of key trends across marketplaces and what competitor brands are targeting. Low ticket purchases and demand for fashion products and beyond propelled in terms of order volume, but Amazon sold items of higher value during the same period with a massive rise in numbers.

Finding the right balance between pricing and volume is crucial. Offering attractive discounts and deals can drive higher sales volumes, but brands need to ensure that they don’t compromise their profitability. Strategic pricing strategies can help achieve this balance.

Track In-stock and out-of-stock items

Brands must keep real-time track of their stock status, in-stock product availability tracking, and monitoring when & where the products are going out of stock. The stock situation is key during the festive season. Brands must keep track of the trends to set promo offers and match stock to meet expected demand.

Match product demand with Order Fulfilment

One of the critical aspects of these event days is ensuring efficient order fulfillment. Brands need to ensure that they have enough stock available in their warehouses to meet the increased demand during the sales period. Having the right amount of inventory is crucial to avoid stock-outs and ensure customer satisfaction. Also maintaining a well-stocked warehouse is essential to cater to the surge in orders during these events. Brands need to anticipate the demand and stock their warehouses accordingly to prevent any inventory shortages.

Online shopping has experienced a significant boom with the increased number of web users in the last two years due to COVID-19. Finding the desired product and discovering new ones have also contributed to the increased conversions on eCom platforms. The new peaked velocity of transactions has made managing out-of-stocks challenging for brands.

Stockouts mean the product is no longer available on the eCom platform and has multifold brand implications, not just limited to purchases/transactions.

Reasons and Implications of Out-of-Stock

The factors for product unavailability on the eCom platform can get segregated into mismanaged inventories, wrong product demand forecasts, supplier-side issues, etc. Whatever the reason, the customer becomes dissatisfied with the brand/seller and even more challenging to re-acquire, assuming all the problems get resolved, which is an impossible scenario.

Our eCommerce Intelligence Solution reviewed the change in the brand for grocery products and found that the switch is almost immediate. Customers don’t wait to buy “atta” until it arrives at the specific store and is available through the particular seller. Instead, they find alternatives for purchasing the product.