At the same time, the possibilities for expanding the range are objectively limited. The reasons for this are as follows:
Huge financial investments are required . If you have just opened and want to make the same assortment as in DNS, then you are unlikely to have enough resources for this. And even if you manage to buy everything you want, you will need storage facilities, as well as expenses for cargo transportation, personnel work, etc.
Too much choice reduces conversion . It is easier for a buyer to choose from 5 items than from 50. In the language of marketers, this phenomenon is called the "wall of death".
The costs of personnel , organization of document flow, automation of business processes increase significantly . The problem is not solved even by working on a dropshipping system or similar, when you do not need to pay for a batch of goods at once.
Dropshipping
When launching an online store advertising database with an excessively large assortment, a significant portion of the goods may not be in demand . As a result, they take a very long time to sell and do not generate income that could be spent on purchasing products that are in demand among the audience.
Most products have an expiration date. This primarily concerns food products. Also, many building materials lose a significant part of their qualities after the manufacturer's recommended expiration date. Even clothes cannot lie in a warehouse for years. With the arrival of a new season, customers will want to buy models from the new collection, and not last year's old stuff, and they will have to get rid of it, selling it at a discount at a loss.
Thus, an immensely wide range of products is not a blessing for the seller. It is always better to limit yourself to a few popular products than to fill the store with huge volumes of unclaimed products.
Another point: the more expensive the product, the narrower the selection should be. You won't find stores with twenty Louis Vuitton bags on display, but budget stores always have a wide selection.
Increase Your Profits by 10X: 5 Key Metrics You Must Track
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
After working with over 300 online projects , I can guarantee: monitor these metrics weekly and your company will not only survive, but also increase its profits by 10 times!
In the context of sanctions and crisis, knowing the ROI of your advertising decides whether your business will be successful. Tracking these 5 critical indicators is the key to your prosperity.
What you get for free:
5 Key Metrics to Increase Profits by 220%
The Secret ROI Formula: Instant Advertising Efficiency Calculator
Anti-crisis Solutions Matrix: Find the Perfect Strategy for Your Business in 15 Minutes
We have prepared all the documents and templates with formulas for you. And yes, it is FREE:
Download documents for free
Already downlo