Assortment Analysis: How to Find Category Growth Points

Maintaining a consistent supply of products on the digital shelf is one of the most challenging tasks for the category manager of an online store. While effective inventory management helps control product availability to some extent, there are still many limitations. A manager can expertly handle warehouse stock, but these reserves are always constrained, both in terms of quantity and variety.

Moreover, the category manager has no control over the stock levels of manufacturers and distributors. If a supplier runs out of a product, 90% of retailers are forced to list it as unavailable. The few online stores that still have this in-demand item can capitalize on this fact by increasing prices without risking a loss of customers.

To prevent such shortages, category managers need to explore new strategies. One of the most effective solutions is analyzing the product assortment on competitors’ digital shelves.

Contents:

Analyzing the Market Assortment

Basics of Analyzing Competitors’ Digital Shelves

Assortment Analysis: Why Consistency Matters

Analyzing the Market Assortment

Today, placing a product on a virtual shelf costs only a few dollars, so ensuring a broad assortment is no longer the primary challenge for a category manager. If the goal is to increase market share within a category, these tasks must be prioritized:

• Effectively managing product availability
• Quickly introducing innovative and trendy products
• Rapidly responding to competitors’ actions

Basics of Analyzing Competitors’ Digital Shelves

To effectively manage assortment, category managers must not only monitor product availability but also understand how competitors are shaping their offerings. Below are the key steps for analyzing competitors’ digital shelves.

First, you need access to real-time data.

Second, it’s necessary to segment the market’s assortment. This might involve categorizing products by characteristics, price range, or consumer ratings. Such an approach provides a clearer understanding of which products are currently top performers.

Let’s explore how Pricer24 can assist in solving these challenges.

Data Collection

Manually collecting data is both time-consuming and resource-intensive. Moreover, in e-commerce, data quickly becomes outdated. This is where automation comes into play using tools like the Pricer24 analytics platform, which provides accurate, real-time data.

How Does Pricer24 Work?

In Pricer24, market data is collected through a process called parsing. You provide your product catalog and a list of competitors to monitor. Then our content team matches the products in your catalog with products on selected competitors’ websites, and the parser visits those websites at predetermined intervals to collect all relevant public data: prices, product availability, promotions, reviews, etc.

This way, you receive real-time information on the market assortment without lifting a finger.

Competitor Digital Shelf Analysis

1. Assortment Analysis Report

This report lets you compare your inventory with that of your competitors. You can filter data by stores, brands, and categories, helping you identify segments where your product range falls short.

Goal: Identify leaders in competitor product representation and uncover narrow categories or brands with potential for assortment expansion.

You can also analyze this report from a different angle, showing which products in your catalog are missing or sold out on competitors’ websites.

Goal: Pinpoint gaps in the market so you can attract customers searching for products that are not available at your competitors. You may also consider raising prices for scarce items.

2. Availability Dynamics Report

To track the introduction or depletion of products in the market, it’s essential to observe data over time. The Availability Dynamics Report shows daily changes in competitor product availability, allowing you to spot trends and respond accordingly.

Goal: Identify products that are becoming scarce so you can purchase them from suppliers ahead of competitors, capitalizing on demand before others respond.

Possible actions: If the report shows sharp deviations, analyze which products are driving market shifts. Based on this information, you can decide whether to introduce new SKUs or stock up on scarce goods.

In our case study on increasing profit in the video card category, we explain how an online computer store used our platform to identify scarce segments. By reserving and purchasing products early, our client increased video card sales by 30% and boosted profits on deficit products by 25%. You can read the full strategy in the detailed case study.

3. Exclusive Goods Report

This report is a variant of the Assortment Analysis Report but with one caveat: it shows only products that are exclusive to your store. Using availability status filters, you can see which items are unique to your store, giving you the chance to optimize pricing or advertising strategies accordingly.

4. Competitor Exclusives Report

This report identifies products that are only available in your competitors’ assortments. By analyzing competitors’ exclusive products, you can assess their market impact and make decisions about expanding your own offerings.

5. Segment Analysis

Assortment analysis by segment lets you examine categories based on products’ technical characteristics. For example, you can analyze smartphones by storage size or look at the assortment of specific video card models.

How Does It Work?

• Preparation: Define the category, competitors, and product characteristics of interest.
• Data Collection: Our parser gathers these products from competitor websites and adds them to the Pricer24 virtual catalog.
• Characteristics Module: We create a Characteristics module that fills in the technical details for each of your products as well as competitors’ products.

This analysis gives you a new level of granularity, allowing you to filter products based on technical features.

In the case of TELEMART.UA, segment analysis revealed a drop in the availability of NVIDIA 1650 and NVIDIA 1660 Super video cards — key drivers of sales. Using this insight, the client created a list of SKUs to stock up on, ensuring they maintained market share.

6. Monitoring New Products

To stay competitive, category managers must constantly monitor new products on the market. Pricer24 allows you to create a New Products report that automatically captures the introduction of new products by competitors, enabling you to quickly respond and maintain your position in key categories.

7. Product Popularity Analysis

Pricer24 also enables you to analyze product popularity within specific segments. Key metrics include the median position of products in competitor listings and product ratings.

By identifying products with better visibility and demand, category managers can make more informed decisions regarding inventory and promotions. Our comprehensive methodology is detailed in this report: Large Study of the Video Card Market in Ukraine’s Online Stores.

Assortment Analysis: Why Consistency Matters

Regular digital shelf analysis is essential for staying ahead of the competition. Continuous monitoring helps you:

• Track competitor assortment changes and quickly respond to new trends
• Evaluate the effectiveness of your own inventory strategies and adjust them in response to market shifts
• Identify new opportunities to expand your assortment or adjust pricing policies

Conclusion

A well-organized digital shelf offers the perfect balance between a wide assortment and product availability, akin to what large marketplaces provide. With detailed market assortment data, category managers can better understand sales fluctuations and uncover growth opportunities by creating unique offers.

This gives you a competitive edge, allowing you to meet consumer needs and successfully scale your categories.

FAQ

How often is data updated on the platform?
We typically update data 3–6 times a day, which is sufficient for most clients. However, we can provide updates as frequently as every hour if needed.

What sources of information are used to collect market data?
Pricer24 gathers data from open sources — specifically, competitors’ websites. You can also upload Excel files with prices into the Pricer24 system. If you have access to a supplier’s B2B portal or API, the system can integrate data from there as well.

How can I integrate Pricer24 data with other management systems?
Our platform integrates with various systems through APIs. Our tech team can discuss details of integration with your existing tools.

Can Pricer24 be used for analyzing international market inventory?
Yes, Pricer24 supports assortment analysis in both local and international markets.