Adjusted the merchandising strategy and how the product was positioned on the site to increase the average order value.
A newly-launched online retailer distributing high-end specialty foods direct-to-consumers.
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.
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.
- 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
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.