It’s almost that time of the year – Amazon Prime Day’s a-looming. The midsummer, Black Friday equivalent and annual reminder to retailers of one of the most wildly successful loyalty campaigns ever created.
This four-year-old online shopping “holiday” is also a clear reminder to retailers of this:
It’s time to step up your game.
Beyond the Prime Day phenomenon, Amazon’s success stems from understanding what their customers want.
In essence, understanding what your customer wants means the ability to offer the right product in the right place at the right time: the ultimate challenge retailers face today.
Perhaps not surprisingly, a huge part of this challenge can be traced back to a retailer’s allocations. You can have the best assortment plan in place, the perfect quantities purchased—and yet, you continue to see unsold product, day after day, that should have sold well at store A or out-of-stock situations at the supposedly-low-demand store D.
It’s not easy to know ahead of time that you should have stocked 30 more pairs of faux fur slide sandals in a size seven at Houston’s Galleria store. While hindsight’s 20/20, it’s also freakin’ costly.
Here are some of biggest allocation challenges retailers need to quash ASAP: