According to Forrester, over the next five years online sales are expected to grow by $401 billion.
Whether you are a retailer or brand it may be hard to keep up with those growth rates year over year and keep up with the market. Here at Logicbroker, we provide insights into what works best for both brands and retailers and provide them with a position to grow and beat these projected market growth rates.
From our analysis, brands on our platform have seen growth rates that far exceed the market by increasing their channels. In 2019, Logicbroker brands, on average, added two new partners/channels, in effect increasing their GMV by 256.27% and order counts by 230.83%. All brands had existing partnerships, and these new channels were additions for the 2019 year. Therefore, these brands are seeing 100s of thousands of new eyes on their products, inevitably adding to their brand value. Brands with a cross-channel presence increase customer retention by 90%. Most customers shop in many different channels, and are loyal to brands that cater to their cross-shopping journey.
From our analysis of retailers adding suppliers/brands, we have seen a similar theme of growing sales. On average in 2019, our retailer customers added 14 new suppliers, increasing their supplier totals by 41.45%. This accounted for an increase of 13.15% in GMV and a 255.07% increase in SKU assortment.
As you can see these growth rates are well above the normal retail market. We attribute this to the large increase in assortment from new supplier channels. For every 402 new products added to a retailer’s assortment, they are increasing their total GMV by 1%. As any retailer will know, merchandise assortment is king. In fact, roughly 65% of all retailers plan to increase their investments in product assortment.
With that in mind, it’s important to move fast to keep up with consumers tastes and expectations. But as many retailers will quickly realize, the challenges to adding new brands online can be a daunting and lengthy process. From content and inventory listing, to ordering and fulfillment; the process to add new products is a difficult one. At Logicbroker, we saw our retailers add on average 5,290 new products for 2019. Which, if we put in perspective a standard grocery store contains about 39,000 products, that’s increasing the assortment by 13.56%!
When we look at the average retailer, the normal assortment is only around 500-2,000 depending on the vertical. Logicbroker customers see over 4X the normal assortment with 8,520 different products.
With rapid onboarding and limited risk of carrying inventory through a drop ship model; retailers are accelerating their growth by increasing their assortment, and moreover, brands are adding more visibility to their products by expanding into new retailers and marketplaces. With our Connected Commerce Network ™, Logicbroker is committed to expanding these figures by providing a collaborative platform for trusted retailers and brands to connect quickly in addition to having a dedicated merchant resource. Being a Connected Commerce Network ™ certified retailer or brand enables you to leverage one master connection with the Logicbroker platform to accelerate your growth by seamlessly adding new connections.