A worldwide study from GMA Online on online availability of retailers and brands. Read the interesting findings in the fast-growing area of online...
4 Key Metrics for Brands to Monitor Product Availability
Product availability metrics are worth tracking. Each day out-of-stock is one too many! Track these 4 key metrics: availability rate, product listing completeness, days out-of-stock and lost sales.
Ideally, your brands' online resellers list the agreed-upon assortment. Then their supply chain teams ensure high in-stock rates constantly. But in reality, your products often get lost or run out of stock. Did you know that 20 to 40% of products disappear or never show up on the digital shelves? As a brand manufacturer, selling your products via multiple online channels it is a challenge to track the presence, visibility and availability of your products every day.
Let's look at 4 key metrics you should monitor daily to reach maximum visibility and maintain high in-stock rates on all eCommerce channels. Having the right tools available to save time and make the job more effective is important– Digital shelf monitoring can help you take control.
1. Product Listing Completeness
Monitoring product listings completeness shows you which of your products is missing online. Tools can visualise and overview the exact SKUs listed across retailers. This way, you get the complete picture and answers to:
- Which of your brands' products is missing online
- Are resellers respecting the launch date of new products
- Are resellers selling obsolete products
- Who is selling your products (without permission) on marketplaces
Ensure your brand assortment is present on all eCommerce channels—Monitor retailers and third-party sellers without checking product pages one by one.
2. Availability / In-stock Rates
Once you know your products are listed online, there where they should be, you determine if they are available for sales. In the short run, running out of stock simply means that your product will not sell and you lose sales. But do not underestimate the negative consequences it can have for your brand in the longer term! Besides losing sales, your products' placement in retail search results drop, you lose the buy button on marketplaces, return rates increase and your brand image can get damaged.
The digital shelves change every day so daily check the in-stock rates for each online retailer and marketplace seller. From availability rates per brand to days out of stock per retailer. SiteLucent tools can help you analyse and optimise at every level of product availability. Out-of-stock (OOS) notifications and automated availability reports help your products be visible, win the buy-box and increase customer loyalty.
The availability rate shows you the percentage of products available within the total portfolio. Look at the availability rate per brand, retailer, or seller and zoom in to a product detail level.
3. Days out-of-stock
Each day out-of-stock is one too many! That's why you should start tracking the length and timing of each product stock-out daily. Zoom in on products that more frequently run out of stock. These products have fewer chances of winning the buy box. Marketplaces algorithms prefer sellers that have full inventory most of the time. Besides that, buyers aren’t waiting to switch to other products when their favourite product is out of stock.
Digital shelf analytics tools can show you certain patterns in availability, determine issues and help the supply chain department of your brand anticipate potential supply issues in the future.
Receive detailed out-of-stock reports straight in your inbox with daily-updated availability status and days out of stock per product. Set up alerts on KPI and product level to the right person so you can quickly replenish inventory.
4. Lost sales
Stock-outs lead to lost sales but also result in reduced customer satisfaction and lower loyalty levels. The more days a product sells out, the more buyers will be disappointed and you will lose sales.
Lost sales are one-to-one tied to your out of stock rates. It means that if a product is out of stock for two days, you take how much you would sell on average each day, multiplied by two, and you know your lost sales.
Maximise Online Product Availability & Sales
Imagine you're doing an excellent job driving attention and traffic to a product page which then fails to convert at the final moment because the retailer doesn’t have enough inventory in stock. Don't miss out on sales opportunities and boost eCommerce sales by fixing out-of-stocks across multiple retailers.