A Brief Introduction to Amazon Demand Side Platform (DSP)

A Brief Introduction to Amazon Demand Side Platform (DSP)

According to a report by Statista, Amazon attracts upwards of two billion monthly visitors as of 2022, making it prime property for advertising your products. Despite your best efforts to use Amazon’s ad products, you may not always see results in terms of ROI for two main reasons. 

First, it is important to know that Amazon has increased the number of products and ad placements across the marketplace, which can seem quite overwhelming to consumers who are inundated with ads all the time. Secondly, not all of your customers may be searching for you on Amazon in the first place. To solve both these issues, you can leverage the offerings of Amazon’s Demand Side Platform (DSP). 

Enter Amazon Demand Side Platform (DSP)

It is designed to identify, target, and engage potential off-Amazon consumers and guide them towards Amazon – a boon for small sellers on the marketplace. These ads are offered in various forms such as mobile banner ads, image and text ads, mobile interstitial ads, in-stream videos ads, desktop display ads, etc.  

The great thing about Amazon DSP is that any vendor or third-party seller can use this platform to generate brand awareness and target the right consumers. While the self-managed option has no management fees and allows for flexible campaign investments, the managed component can be a bit pricey.    

Wait, wasn’t it called something else earlier? 

Yes, it can get a bit confusing keeping track of Amazon’s various advertising platforms and their acronyms. In 2018, Amazon Marketing Services (AMS) allowed small vendors and sellers to advertise on the platform whereas Amazon Media Group (AMG) was dedicated to large-scale vendors both on and off the platform. There was also the Amazon Advertising Platform (AAP), dedicated to its demand-side platform that targeted audiences both on and off Amazon. 

In 2018, these platforms were consolidated and rebranded under one Amazon Advertising (AA) platform and turned AAP into DSP. Here are five factors that make Amazon DSP different from Amazon’s Sponsored Display Ads. 

  • Shopper data: Amazon has a deep reservoir of first-party shopper data, be it on or off the marketplace. And this is available only to Amazon, which means sellers using DSP can leverage the insights offered by Amazon. 
  • Shopper targeting: While Sponsored Display Ads target shoppers within Amazon, DSP can target shoppers externally too. These ads are run on the Amazon marketplace, Fire TV, Kindle, IMDb, Freedive (IMDb’s streaming platform), apps, publishing partners, and third-party exchanges.
  • Pricing model: Unlike Amazon Sponsored Display Ads that follow the pay-per-click model, DSP uses a cost per thousand or cost per mille (CPM) model. This means that you pay for each time an individual sees your ad, whether or not they interact with it. 
  • Relevance: It’s safe to say that anyone actively searching for a product on Amazon already has the intent to purchase. This is what the Amazon Ad Console usually targets. However, Amazon Demand Side Platform targets relevant users outside of Amazon to create brand awareness, and then retarget them to drive purchase interest. 
  • Behavioral targeting: Usually, Amazon Sponsored Display Ads function on keyword search, which means that your product will be shown when a user types in related keywords. DSP on the other hand targets behavior. What does this mean? Your ad will be displayed based on what they’ve bought before, the detail pages they frequent, the categories they commonly browse, the specific products they have added to cart but not purchased, among many other behavioral patterns.   

While each channel has its advantages, sellers using Amazon Ad Console in tandem with Amazon DSP are able to enjoy the full funnel – right from the stage when consumers have no awareness of your brand to the point they choose to purchase from you. 

What are the benefits of Amazon DSP? 

When used right, DSP can be pivotal in increasing brand awareness and exposure, boosting sales, and acquiring new customers. Some of Amazon DSP’s features include: 

  • Advanced targeting features such as demographics, geographic locations, segmentation, as well as date and time scheduling 
  • Additional targeting through A/B testing, mobile and desktop specific ads, in-market audiences, ad placement and frequency, domains, and PIN codes
  • Target customization through unique, user-built audience groups   
  • Flexible and dynamic campaign targeting 
  • ASIN retargeting capabilities such as cross-selling, customer re-engagement, customer education, reminders for repurchase, etc.  

Interested in learning how Amazon Demand Side Platform can transform your advertising strategy? Reach out to the experts at Tenovia today!

Garnering a Reach of 2.4 Million for Paragon’s Brand Ambassador Campaign | Paragon Footwear

Garnering a Reach of 2.4 Million for Paragon’s Brand Ambassador Campaign | Paragon Footwear

Paragon Footwear is one the largest footwear brands in India, dominating the market for decades and manufacturing over 14 Cr pairs each year. For the occasion of Independence Day, the brand recently launched a social media campaign to amplify its celebrity video with Hrithik Roshan – We Touch Every Indian’s Feet. 

The video highlights the key message of kindness and the quintessentially Indian tradition of touching feet – cleverly linking it to Paragon’s ability to ‘touch every Indian’s feet’. Since Paragon Footwear is available all over the country, the brand wanted to extend its message to the masses and garner attention to its video. 

The challenge: Aligning with their message to touch every Indian’s feet

To ensure that Paragon Footwear could achieve its vision of reaching every Indian with its high-quality and durable footwear, we decided to focus on the brand’s core values using influencer marketing. The #WeTouchEveryIndiansFeet campaign was designed to reach audiences in every corner of the country. 

The brand leveraged macro influencers from different states to spread their message and boost their reach. With the brief to showcase the impact of goodness, they gave influencers the creative freedom to shoot any kind of deed. The task was to ensure that the Paragon logo was present in every video to facilitate uniformity and brand recall. 

Our approach: Finding the right influencers to spread the message 

At Tenovia, we believed that identifying the right set of macro influencers was crucial for the success of this campaign. Since Paragon was keen to work with only a limited number of influencers who could help achieve virality, we prioritized factors such as a high follower count and engagement rate while selecting the influencers. 

It was also important to ensure the influencers did not have any fake followers or indulged in leveraging engagement through comment bots and pods. For this campaign, creativity was pivotal to boosting overall performance. After thorough research, we shortlisted 10 influencers.

The execution: Prioritizing creative freedom and insight-driven planning

Once the influencers were shortlisted, each of them received a pair of footwear from the brand as per their choice. Each creator had the liberty to direct the video as they desired provided they highlighted the footwear from Paragon and used the logo prominently. Using the Instagram Reels feature, content creators made the campaign come alive through various deeds of kindness. Some donated shoes from Paragon, others fed stray animals, donated money, and explored many other scenarios that fit the bill. 

This activity performed exceedingly well and encouraged further participation from their followers, allowing us to reach our goal in a very short time.

The results: Higher engagement and deeper impact 

Using the above execution strategy, Paragon Footwear’s campaign was able to record impressive numbers in terms of reach and engagement.  

5 E-commerce Trends and Predictions You Should Watch Out For in 2023

5 E-commerce Trends and Predictions You Should Watch Out For in 2023

E-commerce has come a long way since the early days of Amazon. Today, it is more complex and nuanced than ever before. In India, the e-commerce sector is growing rapidly, and will account for 7% of the entire retail market by next year – worth a whopping $60 billion. 

Every year, new trends and technologies emerge to define the e-commerce landscape. For retailers to stay ahead of the game, it pays to pay attention to these changes. While some transformations made by the pandemic in consumer psychology and behavior were permanent, others are momentary. Here are five predictions we’ve narrowed down for the upcoming year.   

1. Optimized operations and real-time data analytics will remain vital.

Data reveals everything. Smart retailers today use data to identify which products are selling well and which ones aren’t. They use it to improve inventory and supply chain management, and understand what customers are searching for – all in real-time. With data analytics, you can get actionable insights on essential focus areas to best determine promotions, sales, and discounts. Analytics can even get you ahead of the curve. If you know that a certain trend is going to become more popular in the next few weeks, you can anticipate higher demands and tweak your purchasing decisions accordingly.

2. Upselling and cross-selling will become smarter and more advanced.  

Smarter tools such as data analytics and artificial intelligence are a boon for cross-selling and up-selling. Almost two-thirds of smartphone users show increased tendencies of purchasing from a company whose apps and mobile websites offer recommendations. In fact, one out of two consumers have admitted to buying a product they never intended on purchasing, thanks to personalized product recommendations.

With better tools like these, e-commerce brands can now make more accurate predictions of consumer behaviors and patterns, and find smarter strategies to cross-sell and upsell their products. With highly accurate product suggestions as well as complementary items, your brand can do more than just rely on past data and search histories. 

3. Social shopping and live shopping will take a larger slice of the cake. 

Digital shopping is evolving every day. Social media and live streams are becoming a hotbed for e-commerce – with consumers and brands frequenting social shopping platforms such as Instagram Live, TikTok Live, TikTok Shop, Amazon Live, and Twitch to make purchases. Many consumers today rely on their social feeds to search for products, get recommendations, and make purchases. Gen Z in particular depends more on TikTok than Google for product search and recommendations. It is estimated that global sales made from social media platforms accounted for $992 billion this year. By 2026, this number is expected to reach $2.9 trillion! 

Why has this happened? As opposed to older generations, younger people prefer authenticity and trust when making a purchase. They would rather listen to a friend or an influencer they like and trust instead of an ad pushed by a company. So if you’re a brand considering foraying into social commerce, align your marketing strategy with the platform in question. What products would you sell? How would you sell them? Who are the best spokespeople for your brand? These are a few starter questions that will put you on the right path. 

4. With inflation on the way, research will become paramount.

Global recession forecasts are casting dark clouds over every industry and sector, and e-commerce is not immune to it. What does this mean for e-commerce businesses? Consumers will spend more time on research and less money on shopping. Brands that prioritize marketing and ensure that all the necessary product information and promotional content is easily searchable by consumers will gain an advantage. If you’re putting in the work to make decision-making an easier and faster process for the consumer, you win.

That’s not all. Since inflation comes with greater costs for businesses too, it might be prudent to keep an eagle eye on the expenses of digital fulfillment. Owing to the rising costs of shipping and delivery, e-commerce businesses will have to rethink their fulfillment strategy to optimize costs.  

5. Voice search will contribute more to e-commerce

When it comes to making online searches, voice commands are becoming commonplace. At the 2021 Google for India event, it was revealed that Indians use voice search at almost 2x the global average. In fact, queries through voice search are growing at a stunning 270% every year. In addition to the increasing penetration of internet access and smartphones, the reason for this quick adoption is the integration of regional languages in voice assistants. 

Voice search opens up new paths for customers to find products, especially when they’re not exactly sure what they’re looking for. While still in its nascent stages, voice search will become more advanced and more accurate. So if you’re keen on adopting the latest trends, it is wise to consider optimizing your e-commerce listings to voice search. 

Ready to get ahead of the trends and change the game? Get in touch with the experts at Tenovia today and take your e-commerce business to the stratosphere! 

Leverage the Power of Social Media and Analytics with Tensight

Leverage the Power of Social Media and Analytics with Tensight

Counted among the top 10 economies in the world and slowly inching towards becoming the most populous, India shows immense potential for social media adoption. A Statista report claims that by 2025, India will be home to almost one billion social media users. 

It’s not just casual users. According to the Internet and Mobile Association of India (IAMAI), over 346 million Indians are actively engaging in online transactions such as digital payments and eCommerce. To put it into perspective, this number is higher than the entire population of the United States. Soon, India’s web user base will become the third largest in the world – closely following the United States and China. 

How did this rapid digital revolution come about? 

The answer is a combination of a few catalysts. With the introduction of affordable, high-speed internet about a decade ago, people in every corner of the country have been able to browse the web for entertainment and shopping. This has helped sellers and buyers alike. In addition to that, the increasing number of players in the affordable smartphone market has further pushed the pace of adoption. By 2040, it is estimated that India will be home to over 1.5 billion smartphone users.  

As people become more accustomed to the connected way of life – be it for shopping or entertainment, news or socializing – new patterns emerge. Digital buyers command a unique form of marketing, engagement, and collaboration procedure. 

Naturally, it’s smart to take advantage of the social media wave. Many businesses already are. It is estimated that even the top businesses are allocating 15% – 20% of their total marketing spends for social media marketing alone. Through social media, brands can gain access to large pools of consumers and deploy targeted messaging based on relevant interests. What remains the same is the dislike for interruptions, especially by advertisements. This is where analytics comes in.

Here are five reasons social media analytics can be good news for you.

  1. Boost customer acquisitions 

Social media analytics can help you map your customer’s journey in detail. Given that your customers are the backbone of your organization, this is a necessary step. By closely planning and managing their journey – from awareness to purchase – you can engage with them consistently and encourage brand loyalty. 

  1. Optimize product launches

With the help of analytics, you can identify emerging trends and get in on them early. It also allows you to discover market opportunities that were previously unknown and minimize risks.

  1. Protect your brand’s health 

Want to know what’s good for your brand’s health? A happy customer. Every single interaction and touchpoint you have with your consumer contributes to your overall brand experience. That’s why brands are working hard to gain positive consumer sentiment. After all, brand perception – often in the hands of the consumers – is one of the biggest factors that contribute to your bottom line. With social media analytics, you can predict and pre-plan your touchpoints, even if it’s just a direct message.

  1. Enhance campaign performance 

Analytics teaches you everything you need to know about your audience – from their likes and dislikes to habits and patterns, and more. With the right insights, you can craft more relevant and effective campaigns. What’s more, real-time social media analytics also teach you what’s not working and allow you to adjust your campaign at any time.  

  1. Reduce customer care expenses

Customer care is very different today. They are no longer limited by time or medium. When there’s an issue, today’s consumers don’t hesitate to call out brands, expecting answers and quick resolutions. What’s more, it’s no secret that brands have considerable data on their consumers, so it is only wise to leverage this data to build stronger relationships. With analytics, you can consistently monitor what your consumer needs and bring in opportunities to address these needs and issues.  

Make way for Tensight – your social media analytics partner

Oftentimes, there is a gap in understanding how a successful social media campaign affects online sales. While there are a few ways you can get this data, you may not always get actionable insights, for example, associating a specific influencer campaign with your sales. What you need is a simplified tool. 

With Tensight, you can bridge this gap by getting centralized metrics from various data sources that help you better visualize the impact of your campaign on cross-functional departments. On our unified marketing platform, you can view the performance metrics of your campaigns across various marketplaces and social media platforms, measure your brand’s share of voice, and quantify just how impactful your campaign has been. 

More importantly, you can track your competitors’ campaigns, prices, and offers on a daily basis. You can also see new product launches and receive near real-time inputs on your own. Tensight allows you to collate all key metrics from your own site and track the results of your paid campaigns. 

If you want to take your business to the next level, reach out to the experts at Tenovia today!

The Role of Social Media in the Creator Economy

The Role of Social Media in the Creator Economy

Until recently, mainstream media was run by a few major players. Be it entertainment or news, most of us read, watched, and heard content from a few companies. And if an individual wanted to start a conversation or contribute to one, they had to do so as a part of these companies. 

With the advent on the Internet however, all this has changed. Media has now become decentralized and democratized, allowing anyone with an internet connection to make their voice heard. What’s more, the content created by ordinary individuals is being consumed at an accelerating pace. Moving on from traditional TV, cinema, radio, and newspapers, social media apps such as YouTube and Tiktok are giving millions, if not billions, the platform to create and share content. This is now being called the creator economy. 

What is a creator economy? 

Defined simply, a creator economy is an Internet-driven economy that includes millions of people who create content and use tools and software to grow their audience and make profits. This group of creators include bloggers, artists, social media influencers, videographers, etc. In such an economy, creators earn from their audience directly. In between creators (entrepreneurs) and audiences (consumers), lies the opportunity for companies and advertisers who market to and through these creators.

As opposed to traditional media which had pre-determined and oftentimes rigid content and programming, the creator economy creates space for all kinds of niche content that interests social media users – be it through short-form audio and video content, podcasts, social commerce, and live streams. So today, instead of watching the same few channels and content on traditional media, we now have millions of unique content themes catering to audiences with niche interests. 

How social media role plays a vital role

While the creator economy was around in its nascent form with the invention of the Internet, it has become the juggernaut it is today due to social media. Forbes reports that globally, there are over 50 million creators across social media platforms such as Instagram, YouTube, TikTok, and Twitch. Another factor that catapulted the popularity of the creator economy is the COVID-19 pandemic, during which many people staying home found new ways to put out content and create new streams of income. 

According to Statista, India is home to over 900 million active internet users. By 2025, 67.4% of Indians will be on one or more social media platforms. While television still takes the lion’s share of consumption across the country, use of social media through smartphones and laptops/PCs are increasing markedly. The average social media user in India spends almost 2 hours every day on various social media platforms. Needless to say, the potential for businesses to take advantage of the growing creator economy is huge.

Leverage the creator economy to your advantage

When it comes to social media, viewers prefer to consume content from ‘people’, not ‘brands’. That’s why very few brands have managed to find success on social media platforms. But you can always tap into the creator economy with social campaigns and influencer marketing. Content creators can be effective liaisons between brands and customers because they:

  • Keep their fans engaged with regular interactions and targeted content 
  • Create more compelling advertising by customize your brand’s message to their niche   
  • Offer higher conversions due to their established relationship and trust with followers 
  • Effectively target millennials and Gen Z customers, who are more likely to engage 

Content creators are also more effective in advertising a brand as they are a departure from the traditional push marketing strategies. Today, consumers prefer to engage with a brand and associate on a personal level before they make a purchase. As a brand, you can effectively monetize niche content from these creators and influencers through various mediums such as: 

  1. Product placement – whether through subtle plug-ins within the content or shown as a lifestyle choice of the influencer 
  2. Sponsored content – an effective way to improve your brand awareness across channels  
  3. Merchandise – co-branded merchandise designed with the creator can help them monetize their following further and boost sales for you 
  4. Live and virtual meets – live events at physical stores in collaboration with content creators can boost brand awareness and sales at turbo speed 
  5. NFTs – creating exclusive paid experiences with co-branded NFTs can grab the attention of tech-savvy audiences, especially if your category is compatible with the space  

Get started today!

If you’re yet to explore the world of content-driven marketing or simply want to fine-tune your efforts, we can help you. With Tenovia, you can leverage the power of social media in the creator economy – gleaming invaluable insights from audience measurement and forecasting, re-engagement strategies, ad creation services, and data-driven reporting.

Ready to tap into the creator economy? Reach out to the experts at Tenovia and we will take your social media game to the next level!

Boosting buy box percentage on Amazon using analytics | Central Books Online (CBO)

Boosting buy box percentage on Amazon using analytics | Central Books Online (CBO)

Education portal and online bookstore Central Books Online offers a wide selection of textbooks, reference books, study material for competitive exams, novels, stationery, and other general purpose books. In addition to selling its product range on a website, CBO also has an Amazon store.   

Their challenge: Scaling up on Amazon 

Owing to the competitive nature of the category, Amazon has many other sellers pushing the same products. This has led to CBO not being able to meet its projected growth. In order to scale up as per their plans, CBO needs to fulfill two objectives: 

  • Win the buy box for most of their product listings, which will drive more customers to their products instead of their competitors. The initial buy box win percentage is estimated at 10%
  • Maintain the highest possible margins after price reductions from Amazon as well as other investment and operational costs   

Our strategy: Creating an analytical dashboard to study buy box percentage

Tenovia’s analytical dashboard would conduct a detailed week-on-week study of the buy box percentage, crawling data from four primary locations – each representing east, west, north, and south zones. In addition, the dashboard would also read competitor details such as who won the buy box, its price, ratings, discounts, and delivery times. 

Using this data, we were able to deduce reasons as to why CBO lost the buy box to other vendors. This exercise provided specific and actionable insights to boost CBO’s buy box win percentage by optimizing product pricing, tracking buy box allocation for the entire product catalog, and escalating issues on time. 

The results: Key takeaways and successes 

With Tenovia’s support through the analytical dashboard, we offered CBO a method of accurately forecasting, which minimized inventory idle time in the warehouse and operational expenses. Tensight’s data also allowed CBO to design their promotions, pricing, and purchases – ultimately boosting sales and profit margins. 

CBO now enjoys: 

  • Total visibility of all their products with detailed insights on their competitors to take informed decisions  
  • Total calibration of their pricing strategy and inventory management, allowing them to win their buy box
  • Reduced product delivery times due to improved inventory flow as well as higher availability and stock fill rates across regions  
  • Week over week, we could see a good improvement in the buy box wins % (from 21.4% to 26.9%) when the reasons that is pulling the chance down is calibrated with the help of Tensight.
  • With consistent operational efforts by working with the reports generated they were able to bring down their reasons that was hindering their buy box wins% 
  • In the beginning 68.38% they were losing their buy box because of their price competence, which upon consistent optimization, they were able to bring down to 51.64%
  • 55.76% they were unable to win buy box due to non availability of their stock at the Amazon Fulfillment Centers. With the help of the dashboard report they were able to identify the exact ASINs that would have to be moved to respective FCs for optimal chances reducing the reasons to win the buy box to 42.74%

The Rising Importance of Winning the Amazon Buy Box for Mobile And Web

The Rising Importance of Winning the Amazon Buy Box for Mobile And Web

What if we told you that there was a tiny little box on Amazon that influenced 83% of all sales on the biggest online marketplace in the world? It may not look like much at first, but the Buy Box can put your business miles ahead of your competition.

What is the Buy Box hype all about?

The Buy Box is the section on the right side of any product page on Amazon, which allows customers to add items to their cart by clicking on the ‘Add to Cart’ or ‘Buy Now’ buttons. 

But why does it matter so much, you ask? Think about how the average Amazon customer approaches online shopping. When searching for a product, they most likely use generic terms without specifying a brand. They’re also not going to spend too much time scrolling on the product page to find purchasing options. What’s more, they rarely have the option to choose the seller from whom they wish to buy goods. 

So who decides which sellers are featured prominently? Amazon does. Using its algorithm, it displays the best offer for a specific product for that particular shopper, on that day. If you’re in a competitive category, you will realize just how valuable the Buy Box can be for your business – both in terms of visibility and sales.   

So, how does it work? Can you just get a Buy Box? 

The cut-throat competition for the Buy Box and Amazon’s customer-centric approach means that not every seller is eligible to win it. Sellers are constantly trying to win the Buy Box by offering better prices, customer service, discounts and deals, or through other incentives. But it’s never so simple. Amazon only chooses businesses based on select metrics and prioritizes those with the highest chances of success. 

It’s important to note that the Buy Box algorithm works round-the-clock. This means that Amazon is always tracking and assessing your performance, and your competitors’. So, by understanding its algorithm and optimizing your seller metrics accordingly, you can boost your chances of winning the Buy Box. 

Metrics that determine your chances of winning 

In addition to the score based on the algorithm, Amazon also grades you on a few metrics. Here are some of the most important factors you should consider if you’re bidding for the Buy Box. 

  • Seller status: Only ‘Professional Sellers’ are eligible for the Buy Box, for which they pay an additional monthly fee on top of existing seller fees  
  • Performance metrics: The frequency of cancellations, refunds, late shipments, and other essential metrics also determine your chances of winning the Buy Box 
  • Customer feedback: Positive reviews play a big role in landing you the Buy Box as Amazon studies feedback from your customers from various durations (30/90/365 days)
  • Pricing: The Buy Box considers many sellers of each product to determine which one offers the most competitive pricing, inclusive of taxes, shipping, and handling fees  
  • Product condition: The Amazon Buy Box is not eligible for used products; only new products that reach the shoppers untouched and undamaged are considered 
  • Product or order defects: Amazon evaluates your short-term and long-term order defect rates (ODR) and prioritizes sellers with <1% ODR
  • Fulfillment options: Amazon tends to prioritize ‘Fulfillment by Amazon (FBA)’ when deciding your score, so if you’re not using this service it’s time to reconsider 
  • Inventory: If your product frequently sells out, your chances of winning the Buy Box are lowered, so prioritize inventory management 
  • In-stock consistency: Inventory management is also vital to ensure consistency in your inventory stock-keeping 
  • Shipping time: To ensure quick and reliable shipping to its customers, Amazon’s Buy Box algorithm compares your promised shipping time vs. actual shipping time 

One more thing – the Buy Box functions as a rotational model 

Just because you won the Buy Box once, it doesn’t guarantee you the spot again. The algorithm chooses eligible sellers in rotation and switches from one deciding factor to another – be it performance metrics, pricing, customer feedback, or any other. The Buy Box is shared proportionate to the number of contenders for a product. So how well you compete with your rivals determines how often you win the Buy Box. In some cases, the Buy Box can be shared by multiple sellers in a 24-hour window.  

Boost your Buy Box wins with Tenovia’s analytics 

If you’ve been attempting to win the Buy Box without much success, you might need a push with analytics. Through our analytical dashboard, we can determine your Buy Box percentage, study your competitors, and deliver insights on how you can improve your performance metrics. What’s more, our analytical support also extends to accurate forecasting to minimize inventory inefficiencies as well as operational expenses – ultimately increasing your profit margins and sales. Here’s how we helped one of our clients transform their online storefront and win the Buy Box many times over.

Want to get in on the Buy Box action? Get in touch with us and we’ll make it happen!

Boosting regional utilization by 50% in six months and Improving Bottom Line | Paragon Footwear

Boosting regional utilization by 50% in six months and Improving Bottom Line | Paragon Footwear

Paragon Footwear, one of the largest homegrown footwear brands in India, has found success in offline and online retail. The brand manufactures crores of pairs every year. While its eCommerce presence is successful, and growing in all parts of the country, it faces some challenges that are unique to a company of its size – such as effective regional utilization. 

Their challenge: Lack of optimization in stock distribution

Given the sheer range of products and SKUs for a brand of Paragon’s scale, stock distribution based on region and state remains a major aspect, and a challenge, of inventory planning. When done right, optimized regional supply adjusted to keep pace with changing demands drastically decreases delivery timelines and shipping costs – which means higher conversion. 

This is important in eCommerce as the brand’s range of products is exposed to the entire customer base across the country. And to cater to customers across various regions quickly and efficiently, it becomes imperative to distribute inventory strategically. That’s where Tensight comes in.  

Our strategy: Leveraging Tensight’s regional inventory planning functions 

Using Tensight’s regional utilization dashboard, we conducted a detailed analysis of Paragon’s existing state and regional utilization – both overall and across warehouses. This exercise allowed us to support the brand in a few vital ways. 

  1. Discovering sales potential: We identified regions that experienced higher demand as well as states and regions that had immense potential for sales growth.  
  2. Opening new warehouses in strategic locations: Using Tensight’s vital insights and inputs, we created a new strategy to ensure optimal distribution of inventory across India, after which the brand opened two new warehouses in the eastern and western regions of the country.
  3. Fine-tuning SKUs: Further, we also studied the demand from these zones and on-hand inventory to provide an optimal distribution report to distribute inventory on an SKU level across warehouses and regions. 

Our impact: Better regional utilization, happier customers

Facilitating Pincode Availability on Amazon Fresh | 24 Mantra Organic | FMCG

24 Mantra Organic is the largest organic packaged food brand in India. It is available in over 1,500 outlets and independent stores across the country and abroad, and on ecommerce portals such as Amazon and Flipkart. 

The challenge: Increasing geographical accessibility and availability

The brand has convinced consumers to consider switching from conventional to organic products. However, product availability in certain parts of the country still remains a challenge. 

One major factor behind this is Amazon Fresh. While this rapidly growing subdivision focuses on digital grocery services to deliver fresh produce, perishables, and other day-to-day items within a short delivery window – typically two hours – it is serviceable in only a few pin codes across India. For 24 Mantra Organic to enhance its presence in every geographical area, it is vital to identify real-time tracking of product availability in the pin codes covered by Fresh. 

The goals: 24 Mantra Organic’s roadmap of growth

The strategy: Calculate and evaluate availability vs. non availability  

We evaluated the brand’s product availability in two groups – clubbing 30 top-performing products or ASINs (Amazon Standard Identification Number) in one and the remaining products in another. We considered tier 1 cities such as Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Delhi, and Mumbai as well as other cities in states such as Odisha, Rajasthan, UP, etc. Using these parameters, we calculated the percentage of products that were available vs. not available on a weekly basis. 

The findings: What our analysis revealed

The way forward: Tenovia’s recommendations

Our analysis showed that higher availability in top-performing pincodes of tier 1 cities led to higher sales. To effectively tap this market, top performing products should be made available in at least tier 1 city codes, if not all listed pincodes serviceable by Fresh. We also recommended focusing on expanding availability of other products/ASINs in tier 1 pincodes as well as top-performing products/ASINs in other tier 2 cities.

Never Lose a Sale with Smart Inventory Planning

Regardless of the size of your ecommerce business, it hurts the bottom line when you lose a sale, especially when it’s due to preventable reasons. And one of the most obvious reasons for a loss of sale is an essential part of the supply chain management pipeline – inventory planning.

Here are some common mistakes that ecommerce businesses make that can make them vulnerable to Loss of Sale.

  1. Having too much inventory: Overstocking can cost your business, especially when you have too many units of the wrong product, leaving very little space for other products that would sell immediately. You may also end up spending more on storage, become vulnerable to your cash being tied up, and even risk expiration of your products.      
  1. Not restocking on time: Running out of stock can happen for many reasons – lack of space, limited units, or fast moving items. The problem arises when you neglect restocking quickly. If your customer visits your business page only to see the ‘out of stock’ tag too often, you could lose a sale and a customer.  
  1. Not investing in warehouse organization: It doesn’t take a math genius to know that any inefficiencies in your processes translate to financial loss. With inefficient warehouse organization, you may end up with inaccurate or delayed orders that often lead to refunds and lost customers.  

Good inventory management directly impacts your profits and cash flows. With the right measures in place, you can ensure that you only buy the amount of stock you need, minimizing stockouts and other inventory inefficiencies. It also allows you to carefully strategize every aspect of the supply chain – right from early production and stocking to the final sale.

So, what’s the answer? Inventory planning

At Tenovia, we work with businesses of all scales to solve inefficiencies and issues faced by supply chain teams, inventory management teams, as well as category managers to facilitate strategic transformations in the planning and replenishment processes. Perhaps the most useful tool in this endeavor is effective ROS – an in-house metric available on our analytics tool Tensight. Simply put, effective ROS is defined as the rate of sale of an article factoring the actual number of days it was available in the inventory. 

This simple metric allows us to create highly customized plans that can be tailored to different organizations and marketplaces on a style-level based on each channel’s performance. Once we receive the data from the metric, we break down the allocated inventory and create categorizations on the basis of warehouses, regions, etc. It was this metric that allowed us to transform inventory processes for leading footwear brand Paragon. 

How we helped footwear giant Paragon prevent loss of sale

Manufacturing over 14 Cr pairs of footwear each year, Paragon owns more than 12 fulfillment centers and a veritably large catalog of products. Given this vast inventory, planning then became a unique challenge. In addition to the diverse product range, Paragon had to keep in consideration the large number of SKUs as well as product seasonality. This often led to high out of stock percentages and consequently, losses in sales.       

However with our strategy, Paragon’s supply chain team was able to achieve seamless replenishment and minimize out of stock percentages. Their sales targets increased 15% month on month. The brand’s aged inventory also reduced by a whopping 37% in six months. During the same period, their out of stock percentage decreased from 20% to 7%. Today, owing to its streamlined process, Paragon is now an accredited Platinum Seller on Flipkart. All this just by tweaking the inventory planning process and no additional marketing. 

Revamp your inventory planning with Tenovia

If you too have been experiencing a gap in inventory management, you’ve come to the right place. Just like Paragon and a host of top brands across the country, we can help your business ace the inventory game with cutting-edge customized solutions. Not only will we help you figure out the gaps, we will also put in place processes that will address your unique challenges in the long term. 
Determined to never lose a sale to inefficient planning and management? The experts at Tenovia have got your back!