Thriving necessitates a strategic approach that goes beyond sales goals. It calls for a comprehensive understanding of the critical elements that contribute to success.
By shifting your team’s focus from output metrics to key inputs – traffic, inventory, pricing, and content – you can empower your team to drive better results.
Let’s explore the impact of this inputs-first philosophy and how it can redefine your e-commerce operations.
Your four key inputs for successful e-commerce operations are: Traffic, Pricing, Inventory, and Content. Get these right, and you’ll get good results.
We train you on Amazon’s principles: data-centric decision-making, prioritizing time to market over perfection, encouraging action, and adopting a test and learn mindset.
We equip you with the skills and mindset necessary for long-term success.
We craft a pricing structure that enables you to access our services and accelerate your company’s growth.
We act as your guiding hand through the evolving landscape of e-commerce.
Shifting targets can be a game-changer. It might be time to reevaluate if sales goals are the true north for your e-commerce team. Why? Because sales are an output metric, an outcome that is produced only after the right inputs have been made.
The quartet that creates e-commerce success includes: traffic, inventory, pricing, and content. Interestingly, around 80% of e-commerce work is about manipulating these controllable inputs. If your team’s focus is solely on “driving sales,” their energy may be misplaced. Time to bring a shift!
Remember, the chain reaction triggered by inputs and leading to outputs is as predictable as day and night. For instance, if you experience a long out-of-stock event, it’s evident that sales will plummet. On the other hand, you can boost sales by merely enhancing the in-stock rate. The mantra, in essence, is: Good Inputs = Good Outputs!
Here are some concrete steps retail leaders can take to optimize their approach:
1. Illuminate the Linkages: Educate yourself and your team about the interconnections between business inputs and outputs. This knowledge will help you understand the negative sales behaviors better and pinpoint the root causes of problems.
2. Input-Centric Evaluation: Assess your business through the inputs-first lens. It will help you identify areas that need more time and energy from your team.
3. Benchmark for Excellence: Compare your input KPIs with the best in your industry or category. Let these serve as aspirational targets for your team to pursue.
4. Unified Vision Through KPIs: Develop common input KPIs to be monitored on a weekly, monthly, and quarterly basis. Shared metrics ensure everyone is working toward the same goals.
5. Instill Accountability: Establish performance measurement mechanisms like KPI scorecards and weekly business reviews. They will add rigor and enable you to detect issues promptly.
Transitioning from a traditional approach, especially for an old-school manufacturer-turned-wholesaler, can be challenging. But we believe that transformational change is within your reach. It’s all about equipping your team with enough basics to be dangerous. Age or experience do not matter, only a willingness to learn and grow.
In the end, embracing Amazon’s core philosophies isn’t just about reorienting your team’s approach. It’s about creating a culture that values inputs as much as outputs, promoting a growth mindset that drives both individual and business success. Because, in the world of e-commerce, good inputs will indeed lead to great outputs!