Out-Law / Your Daily Need-To-Know

UK e-tailers told to narrow product ranges

23 Mar 2001, 12:00 am

Larger ranges result in worsening user experiences and damage the potential for retailers to grow revenues, according to the latest report from Forrester Research. The company says on-line merchants must return to basics.

Larger ranges result in worsening user experiences and damage retailers' potential to grow revenues, according to the latest UK-focused report from Forrester Research. The company says on-line merchants must return to basics and adopt merchandising principles that help customers make the best buying decisions.

Forrester analyst Mike Honor said of e-tailers with widening product ranges:

"Large assortments in one place are less attractive on-line than off. The concept of a one-stop shop is rooted in the off-line world, but the web is poor for browsing masses of products. Low on-line switching costs make the web the perfect comparison destination."

The report cites average web site conversion rates of 2% to 3%, observing that shoppers engage less with the retailer's offer on-line than off. The report adds that “on-line, retailers need to replicate the salesperson's ability to articulate customer needs and provide comparative information.”

Honor concludes:

"Having become constructive merchandisers, retailers can consider continuing with range expansion plans. Having designed a site that can be easily navigated by all types of shopper, retailers can begin introducing more sophisticated merchandising techniques."

For more details, see www.forrester.com.