Merchant Analytics: What it is and How It's Driving Profitability

January 14, 2016

 

Merchant analytics

Efficiency is key to any business. For merchants, both retailers and e-tailers, the key to efficiency is improving operations. The fact is, year over year, more and more consumers are choosing to shop online. Whether it’s through a mobile device, laptop, or desktop computer, we will continue to see an increase in the number of digital shoppers (See graph below).

Online shopping stats

So what does this mean for merchants? Nowadays, because there are so many companies that occupy the online space, gaining brand loyalty can be difficult. For that reason, you need to implement innovations into your operations in order to separate yourself from the herd. One strategy proven to be effective is analytics.

Analytics are used in many industries to allow companies to make better business decisions in order to maximize profitability. There is no exception when it comes to merchants and the retail/e-tail industry. Often times, when we think of data analytics, we think of organizations breaking down big data to optimize marketing performance, increase conversions, and obtain new prospects. For merchants, the use of analytics means improving your operations, and ultimately, increasing your customer brand loyalty.

As I mentioned earlier, shopping has moved to the online space. With that, comes an increase in parcels and the amount of products that need to leave Point A, and reach Point B. For merchants, it is essential that their courier service is performing up to standards and agreements. If not, merchants are losing out on profits, and customers. Think about it - if I am a customer who made a purchase online, and I receive my package a week later than the expected arrival date, chances are I am going to buy from a different company next time. Here is one of our recent blogs on Amazon addressing this concern. At Youredi, we see this problem occur regularly, and that is why we came up with merchant analytics.

Youredi Analytics allows you to measure and monitor how a process should be running, alerting you to abnormalities and bottleneck, thus allowing you to fine tune performance.

This analytics tool can be used across a broad range of industries and processes to ensure KPI’s and SLA’s are met; delivering maximum profitability, optimal efficiency, and happy customers. For Merchants, merchant analytics could be order processing/fulfillment, inventory optimization, carrier/courier performance, route/lane performance, the list could go on and on. Not only analytics, but predictive analytics with proactive real time alerting, designed to keep people informed, enable quicker decision, eliminate bottlenecks and improve overall efficiency.

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