Yes, having a good product mix is essential to stand out from the competition and increase your revenue.
But it’s not enough to just have a broad and diverse catalog; you also need to know how to distribute your products through the right channels. And that’s where the marketplace concept comes in.
In this article, we will explain what a product mix is in e-commerce, as well as the concept of marketplace in and the importance of both for your virtual business.
Want to learn how they can improve your sales and help retain customers? Then keep reading!
What is Product Mix in e-commerce?
Product mix is the set of items that a company offers to the public on its sales website. It can be measured by four dimensions: breadth, depth, extension and consistency.
Range: This is the number of product lines or special database categories that the company sells. For example, a clothing store may have men’s, women’s and children’s lines.
Depth: This is the number of variations within each line or category. For example, within the men’s line, the store may have shirts, pants, jackets, etc.
What is its importance?
Having a good product mix in your e-commerce brings several benefits to your company:
- Increases the chances of meeting customers’ needs and desires;
- Expands cross-selling or upselling opportunities;
- It stands out from its competitors due to its variety and exclusivity;
- Take advantage of economies of scale in the production or purchase of products;
- Improves the brand’s 5 steps to globalize your regional marketing strategy image as a reference in the segment.
However, to define an ideal product mix for your business, you need to take some factors into account:
- The profile of your target audience;
- The positioning of your brand in the market;
- Your company’s strategic objectives;
- Market demand for your products;
- The financial capacity of the business.
What is Marketplace In?
Marketplace in (in translation, internal marketplace) is an online sales method in which you use a third-party platform to display your products on your own website.
In other words, you create a kind of virtual thailand lists showcase within your domain, but without having to manage the entire logistical and operational process involved in the transaction.
For example, if you have a women’s fashion website, you can create a marketplace to sell accessories, shoes or cosmetics from other partner brands, without having to stock, package or ship these items.
What is its importance?
Adopting the marketplace in can bring several advantages to your company:
- Increases the supply and variety of products available to your customers;
- It adds value to your brand, as it shows that you care about offering complete and integrated solutions;
- Reduces costs and risks associated with inventory management, logistics and payment;
- Increases traffic and conversion on your website by attracting more visitors and encouraging impulse purchases;
- Generates additional revenue through the commission charged to partners.
How can Product Mix and Marketplace In improve your sales and help you retain customers?
Now that you know what product mix and marketplace in are, let’s see how these two concepts can complement each other to boost your e-commerce results.
By combining a good product mix with a marketplace strategy, you can offer your customers a more complete, personalized and satisfactory shopping experience.
Here are some examples:
- You can create combos or product kits that combine items from your catalog with items from your partners, generating more value for the customer and increasing the average sale ticket.
- You can use cross-selling or upselling techniques to suggest complementary or superior products to those the customer is looking for or buying, encouraging them to consume more.
- You can segment your customers by profile, behavior or preference and offer relevant products to each of them, increasing the chances of conversion and loyalty.
