Understanding basic product roles
When selecting your inventory, it’s important to evaluate each potential item and identify the role it plays in your web store. Every item in your line-up has a place in your overall product solution – they fit together like pieces of a puzzle. Here are five categories you should consider to round out your product line-up:
Core Products – These are your main products, the core of you business. These products have a high demand from your target market and provide a solid profit margin. These products represent a large percentage of you overall revenue.
Cross Sellers -These products or accessories that relate to your buyer’s primary product of interest. Each of these products has a different profit margin associated with it, but each serves an important function and contributes to your overall profit margin. These products are memory card or cash you sell with the digital camera your customer just bought.
Up Sellers -These products are more expensive, higher-end versions of a product. Typically, up-sellers are displayed next to the regular product version, to entice buyers to upgrade. These products can contribute substantially to your overall profit margin when buyers decide to buy the upgrade instead of the base model. These products are the 8 Megapixel and 10 Megapixel versions of the 6 Megapixel camera your customer is considering buying.
Rounders -These are complementary products that round out your product selection. These products are part of offering your customers a complete shopping experience. These would be the batteries and lens paper you offer along side your digital cameras. You might not make a large profit off of them, but it’s convenient for your customers and makes their buying experience more satisfying.
Loss Leaders -These are products on which you are just breaking even or taking a small loss to draw people to your store. Display cross sellers and up sellers around these products to encourage customers to buy other products.
Providing a diverse, well-rounded product selection can boost your sales, gives customers a motive to come back, and presents you with an opportunity to build repeat business.
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