Strategic Merchandising
Adjusted the merchandising strategy and how the product was positioned on the site to increase the average order value.
25%
Increase in Average Order Value
50%
Increase in Conversion Rates for newly-merchandised inventory
Client
A newly-launched online retailer distributing high-end specialty foods direct-to-consumers.
Challenge
After launch, client leadership recognized the need to improve average order value and conversion rates in order to make margin and support sustainable growth. Because the product arrived to them in preset packaging, merchandising adjustments needed to be well-supported and profit-generating, as they would require manual repackaging prior to fulfillment.
Solution
Gild Group helped to guide strategic adjustments to the merchandising strategy in order to meet customer demand and correct margin while mitigating any resulting operational inefficiencies.
Accomplishments
Identified which products would be most impactful on profit with a margin increase
Reviewed processes and established a standard operating procedure for fulfillment of newly-offered product
Increased available sizes on the most popular store product by 300% without changing supply chain
Implemented upsells on newly-merchandised inventory to increase average order value
Results
With strategic and well-planned adjustments to the merchandising strategy, average profit margins per order increased 17%, average order value increased 25%, and conversion rates for newly-merchandised inventory nearly doubled.
