Unlock growth opportunities by optimising your Amazon product assortment
For Consumer Packaged Goods (CPG) brands on Amazon’s Vendor Central, the right product assortment can be a game-changer. A well-optimised portfolio ensures your brand meets customer needs, addresses market gaps, and positions itself competitively. But how do you go beyond simply filling orders to creating a product range that drives growth and strengthens your partnership with Amazon?
This guide dives into why product assortment optimisation matters, how to approach it strategically, and what practical steps you can take to align your offerings with both customer demand and Amazon’s expectations.
-
-
Why optimising product assortment matters
A strong product assortment is key to unlocking sales and enhancing your operational efficiency on Amazon. Here’s why it’s vital for CPG brands to focus on getting it right:
1. Meet customer demand: Offering a variety of products ensures you meet diverse customer needs, increasing the likelihood of repeat purchases and fostering brand loyalty.
2. Increase sales: A targeted product range can boost visibility, attract more customers, and increase average order value (AOV).
3. Reduce stockouts and overstocking: Strategic assortment planning minimises inefficiencies, helping you maintain the right balance of inventory.
4. Strengthen Amazon partnership: When your portfolio aligns with market trends and demand forecasts, you’re more likely to secure favourable terms and increased support from Amazon.
Key considerations for product assortment optimisation
Effective product assortment optimisation requires a strategic approach to meet customer needs and capitalise on market opportunities. Here’s what to focus on:
1. Identify gaps in your portfolio
Why it matters: Amazon’s expansive marketplace is highly competitive, and gaps in your product offerings can lead to lost sales. Identifying missing items ensures your portfolio captures all potential customer demand.
How to do it:
-
Use Amazon's analytics dashboards to analyse sales trends, search behaviour, and competitor portfolios.
-
Monitor customer reviews and feedback to identify unmet needs or desired features.
-
Partner with your Amazon Vendor Manager to access insights into category trends and growth opportunities.
2. Focus on high-performing SKUs
Why it matters: Doubling down on products with strong sales, high margins, and low return rates maximises profitability and streamlines operations.
How to do it:
-
Identify your top-performing SKUs using ARA Premium’s sales data.
-
Invest in marketing support for these products, such as enhanced content or display ads.
-
Expand product variations (e.g., size, flavour, or packaging) based on customer preferences.
3. Introduce exclusive products for Amazon
Why it matters: Exclusive offerings differentiate your brand from competitors and build customer loyalty. Amazon values vendors who create tailored solutions for its platform.
How to do it:
-
Develop bundles or multi-packs tailored to Amazon shoppers.
-
Launch products that cater to emerging trends, such as sustainable packaging or niche dietary needs.
-
Highlight these products with A+ Content and strategic advertising
4. Leverage seasonal trends
Why it matters: Seasonal demand spikes offer an opportunity to capture incremental sales if your assortment aligns with what customers are searching for.
How to do it:
-
Review historical sales data to identify key periods for your category.
-
Develop seasonal variations or limited-edition products to create urgency.
-
Collaborate with Amazon marketing agency to ensure sufficient stock levels and promotional support.
5. Balance innovation and core products
Why it matters: Innovation drives interest and captures new audiences, but core products often generate the most consistent revenue. Finding the right balance ensures long-term success.
How to do it:
-
Allocate resources to develop innovative products while maintaining strong support for your best-sellers.
-
Use data insights to assess the risk and potential ROI of introducing new products.
Practical steps to optimise your product assortment
Optimising your product assortment doesn’t have to be overwhelming. Here are actionable steps to ensure your portfolio meets customer needs and drives growth:
1. Conduct a portfolio audit: Regularly review your product range to identify underperforming SKUs, redundant offerings, or gaps. Focus on metrics such as sales velocity, margin contribution, and return rates.
2. Collaborate with Amazon: Engage your Amazon Vendor Manager to gain insights into demand forecasts, emerging trends, and opportunities for co-development. Align your assortment strategy with Amazon’s recommendations to increase promotional support.
3. Test and iterate: Launch new products or variations on a small scale to gather data on customer demand. Use A/B testing to evaluate product titles, imagery, and pricing strategies. Monitor performance and adjust your assortment accordingly.
4. Optimise listings for visibility: Ensure all products feature clear, keyword-rich titles and descriptions. Invest in Amazon listing optimisation and A+ Content to highlight product benefits and build trust. Use advertising campaigns to promote new and high-priority SKUs.
5. Plan for scalability: Develop a scalable framework for introducing new products without overburdening your supply chain. Partner with reliable suppliers to maintain quality and consistency as your portfolio grows.
Common pitfalls to avoid
Even with the best intentions, it’s easy to fall into traps when managing your product assortment. Here’s what to avoid:
-
Overloading your portfolio: Too many products can overwhelm your operations and dilute focus. Be strategic about what you offer.
-
Ignoring customer feedback: Failing to adapt your portfolio based on reviews and ratings can lead to stagnation.
-
Underestimating lead times: Rushed product launches often result in errors or stockouts. Plan your assortment changes well in advance.
-
Neglecting data insights: Assortment decisions should be guided by data, not assumptions. Leverage Amazon’s Vendor Central Chargeback insights to make informed choices.
FAQs: Optimising product assortment for Vendor Central
Here are answers to common questions about product assortment optimisation:
1. How often should I review my product assortment?
Review your portfolio at least quarterly to ensure alignment with market trends, customer demand, and performance metrics.
2. What tools can help me identify portfolio gaps?
Use Amazon Retail Analytics and Brand Analytics to track customer search behaviour, sales trends, and competitor offerings.
3. How do I decide which products to prioritise?
Focus on SKUs with strong sales, high margins, and low return rates. These products often deliver the greatest ROI.
4. Should I offer exclusive products on Amazon?
Yes, exclusive offerings help differentiate your brand and build loyalty. Collaborate with Amazon to identify opportunities for tailored solutions.
5. How can I mitigate risk when adding new products?
Start with small-scale launches to test demand and gather feedback. Use this data to refine your approach before scaling up.
The bottom line
Optimising your product assortment is more than just a box-ticking exercise. It’s a strategic process that can unlock growth opportunities, strengthen your relationship with Amazon, and position your brand for long-term success.
At WAKE, we specialise in helping CPG brands navigate the complexities of Vendor Central. From data analysis to portfolio planning, we can help you optimise your product range and unlock your full potential on Amazon.
👉 Ready to take the next step? Contact us today to get started.
