Did you know that e-commerce sales are expected to grow by 8.8% in 2024? And Amazon accounts for 37.6% of e-commerce sales, which is the highest market share compared to other e-commerce companies [1]?
While this information is intriguing, it’s also helpful when planning your next steps as an e-commerce business. Data is a source of gainful insights in making decisions. So, how do you gain insights about your own e-commerce?
Your Digital Shelf holds significant data that can be utilized to resolve issues, identify opportunities, enhance customer experience, and outperform competition. To extract this data, you’ll need digital shelf analytics.
To help you leverage the right data and use it efficiently, here are some aspects you’ll need to look at closely –
- What is Digital Shelf Analytics?
- E-commerce Key Metrics and Insights Provided by Digital Shelf Analytics
- Using Data to Optimize Brand Visibility
- Leveraging Data to Enhance Pricing Strategies
- Enhancing Customer Experience Through E-commerce Data-driven Strategies
- Choosing the Right Digital Shelf Analytics Software for Your Business
- Conclusion: Embracing The Power of Data in Your E-commerce Strategy
What is Digital Shelf Analytics?
Digital Shelf Analytics harnesses the power of e-commerce data so you can have a comprehensive view of your online presence to optimize e-commerce strategies. By analyzing factors on e-commerce platforms such as market share, pricing, customer sentiment, and competitor positioning, you can uncover hidden opportunities and identify potential gaps in your online offerings.
With the right digital shelf analytics solution, you can boost your e-commerce strategy. The data derived by digital shelf analytics software will help you understand what drives customer behavior, which you can adapt accordingly into your business efforts. For example, you can determine your market share online and identify why it is at its current percentage and what could be contributing to it.
Improving product visibility, enhancing pricing strategies, and leveraging customer reviews are just some of the ways companies can use digital shelf analytics to drive growth and increase conversions. That said, investing in digital shelf analytics is no longer a luxury; it is a necessity if you aim to thrive in the highly competitive e-commerce landscape. By leveraging the power of data, you can identify trends, spot market gaps, and make data-driven decisions. With this information at hand, your e-commerce teams can also take targeted actions to improve their online offerings, enhance customer experience, and ultimately drive growth.
E-commerce Key Metrics and Insights Provided by Digital Shelf Analytics
Digital shelf analytics offers businesses like yours a wealth of key metrics and insights to help make informed decisions. Some of the key metrics include:
- Market share: Digital shelf analytics can show you how much of the market you have captured compared to your competition in terms of brand market share, category market share, and product market share. The parameter for this is based on units sold or GMV. This information helps you determine what your position is in the market and if you need to catch up with the competition or maintain your lead.
- Pricing: Digital shelf analytics can analyze pricing data from various sources, like marketplaces and competitor webstores, to help you optimize your pricing strategies. By understanding how your prices compare to competitors, you can make sound decisions about pricing adjustments to stay competitive.
- Promotions: Comparing your and your rivals’ promotion strategies can be a great help to determine what could be leading to each of your sales and if you’re doing enough to earn more. With digital shelf analytics you can identify if your competition is implementing price discounts, BOGO sales, kits and bundles, etc. With this information, you can test the competition’s promotion strategies to see whether they would benefit your sales volume.
- Content quality: With the help of digital shelf analytics, you can measure your “listing content quality score” and identify where it requires improvement. You receive keyword related insights based on your product, category, and how your product descriptions and images can improve so they are positioned to enhance shopper interest and conversion rates.
- Share of search: You can get critical insights into your brand’s visibility by knowing your share of search based on category and keywords ranking along with that of your competitors. With these insights, you can identify how to optimize your listings with better SEO, high-quality content, and promotions.
- Inventory availability: By tracking and forecasting inventory levels of all products and their variants, and determining your best performing product variant, you can stock up ahead of time. You can also track new launches by competitors, out of stock inventory, or available to purchase products and optimize your inventory strategy accordingly.
- Brand protection analytics: With data on third-party authorized and unauthorized sellers, you can see which ones are undercutting your prices, violating MSRPs, and using wrong product content on marketplaces. Based on this information, you can implement immediate corrective action and report violators affecting your brand.
- Competitor intelligence: Understanding how competitors are positioning themselves in the market is crucial for e-commerce success. Digital shelf analytics provides insights into how competitors are pricing their products, what keywords they are targeting, and how they are positioning themselves for better search results. This information enables you to identify gaps and opportunities in the market.
Get Key Digital Shelf Insights for Your Company
Using Data to Optimize Brand Visibility
One of the key benefits of digital shelf analytics is the ability to optimize your brand and product visibility for better conversions. By analyzing data on product performance, customer behavior, promotions, and competition, you can easily identify where you need to make improvements.
Some areas that would require focus are:
- Product listing SEO: Digital shelf analytics can provide insights into the keywords customers are using to search for products. By incorporating these keywords into product titles and descriptions, your business can increase its visibility in search results organically. Organic clicks accounted for 45.1% of all search result clicks in 2022 [2] on search engines, it can have similar impacts for you on marketplaces as well.
- Product images: High-quality product images are essential for e-commerce success. Digital shelf analytics can provide insights into what kind of product images are performing well and which ones may need improvement. By optimizing product images, you can enhance your online presence and attract more customers.
- Product descriptions: Compelling product descriptions are crucial for driving conversions. Digital shelf analytics can help businesses analyze customer preferences and identify what type of product descriptions resonate best with your target audience.
- Competitor positioning: Digital shelf analytics can provide insights into how competitors are positioning themselves in the market. By monitoring competitor pricing, keywords, and product positioning, you can identify opportunities to differentiate your business and gain a competitive edge.
- Advertising: Digital shelf analytics can help you identify which products have the highest potential for growth and which ones may need additional promotion. By leveraging data to optimize advertising campaigns, you can increase product visibility and attract more customers.
By utilizing data to improve product positioning and visibility, you increase your online presence, attract more customers, and drive growth.
Leveraging Data to Enhance Pricing Strategies
Pricing is a critical aspect of any e-commerce strategy. Digital shelf analytics can provide you with insights into how your prices compare to competitors, how price changes affect sales, and what pricing strategies are most effective in driving conversions.
When leveraging data to enhance pricing strategies, you should consider:
- Competitive e-commerce pricing analysis: Digital shelf analytics can analyze pricing data of competitors to help you understand where your prices stand in the market. This pricing data will show you if you’re underpricing or overpricing your products so you can adjust your prices if necessary to stay competitive.
- Pricing experiments: Digital shelf analytics can track the impact of price changes on sales and conversions. By running pricing experiments and analyzing the results, you can identify the optimal pricing strategy for your products.
By leveraging data to enhance pricing strategies, you can optimize pricing, increase competitiveness, and obtain more sales.
Enhancing Customer Experience Through E-commerce Data-Driven Strategies
Customer experience is the differentiator in this highly competitive e-commerce landscape. Digital shelf analytics can provide your business with insights into customer preferences, sentiments, and pain points, allowing you to enhance customer experience.
To boost customer experience through data-driven strategies, you can:
- Improve customer support: Digital shelf analytics can analyze customer reviews and feedback, helping you identify areas for improvement in your customer support processes. By addressing customer concerns and providing timely support, you can enhance customer satisfaction.
- Optimize digital shelf: By analyzing customer behavior, you can identify areas of your webstore or marketplace listings that may need improvement. By optimizing these aspects of your digital shelf, you enhance user experience, which can increase customer engagement and conversion rates.
By enhancing customer experience through data-driven strategies, you can build customer loyalty, increase their satisfaction, and also achieve long-term growth.
Choosing the Right Digital Shelf Analytics Software for Your Business
When it comes to choosing a digital shelf analytics software such as Anchanto Digital Shelf, there are several factors to consider:
- Data sources: Ensure that the software can collect data from various sources. This data should include sales figures, customer reviews, and competitor websites, to provide a comprehensive view of your online presence.
- Key metrics: Look for software that provides the key capabilities, metrics, and insights that are most relevant to your business, such as product visibility, pricing analysis, and competitor positioning.
- Ease of use: Consider the user interface and ease of use when choosing digital shelf analytics software. It should be intuitive and user-friendly, allow you to access and analyze the data you need quickly.
- Integration: If you use specific e-commerce platforms or systems to run your online retail, ensure that the digital shelf analytics system you choose can seamlessly integrate with them.
By carefully considering these factors when choosing digital shelf analytics software, you can unlock the full potential of data-driven decision-making and revolutionize your e-commerce strategy.
Try the Right Digital Shelf Analytics Software
Conclusion: Embracing the Power of Data in Your E-commerce Strategy
Today, data is the key to success. By leveraging the power of digital shelf analytics, you can gain valuable insights, optimize e-commerce strategies, and stay one step ahead of the competition.
Understanding the importance of data in an e-commerce strategy is crucial. Digital shelf analytics provide you with key metrics and insights that can help optimize product listings, enhance pricing strategies, improve product positioning and visibility, and better customer experience.
By embracing the power of data, you can make smarter decisions, drive growth, and revolutionize your e-commerce strategy. Investing in a robust digital shelf analytics solution is no longer a luxury; it is a necessity for businesses looking to thrive in the digital age.
So, take advantage of the power of data and unlock the full potential of your e-commerce strategy with digital shelf analytics. Your competitors will be left in the dust as you rise to the top of the e-commerce world.
References –