Which is Better: a Wide Catalog or a Small one?

Determining the breadth of the product catalog in e-commerce is one of the problems that one has to face when opening an online store. Choosing more or fewer products in an eCommerce catalog is not a side issue. This will affect many aspects of our website homepage configuration or marketing policy, in addition to the varying amount of work involved in maintaining one or the other.

At first glance, logic would seem to suggest that the greater the variety in our eCommerce product catalog, the greater the opportunity for sales. Since we don’t have space restrictions like a regular store, why not make a very large catalog? But not everything is as simple as it might seem at first glance. In general, in such cases, it is best to turn to ecommerce software development services for help.

Product catalog in large e-commerce

Arguments for a wide catalog

  • A greater variety of products increases sales opportunities.
  • This allows us to segment our offering much better to cover different customer profiles (targets) from the same eCommerce store.
  • This helps us with SEO as it multiplies the keywords for which we can position ourselves in the search list.
  • This allows you to negotiate with logistics operators on more favorable prices per unit of goods since the volume of shipments will be greater.
  • Diversify risk. The wider the e-commerce product catalog, the more likely one or more of them will be a sales success.
  • This allows for increased product rotation and continuous introduction of new products.

Arguments against a wide catalog

  • Significantly increases costs as it requires more time for maintenance and upgrades
  • This significantly complicates the logistics, both in terms of suppliers (there will probably be many of them) and with the preparation and shipment to customers.
  • This greatly increases the need for storage and handling space.
  • This requires more effort and investment in marketing.
  • Increases the complexity of financial management. A very large e-commerce product catalog means more administrative tasks, higher bank management costs, and additional staffing requirements.
  • This complicates the main page. It is very easy for a customer to move to another site if they cannot easily find what they are looking for, which requires advanced product search tools.

A small catalog of goods in e-commerce

Arguments for a small directory

  • It is easier to handle, and the administrative and logistical costs are lower.
  • Less physical storage and processing space are required.
  • This allows you to focus your marketing efforts on a small number of products, maximizing the results of your advertising investment.
  • This greatly simplifies the design of the web home page. The client quickly gets access to what he is looking for.
  • It is a more specialized image. Increases knowledge of each product and simplifies customer service. In addition, this allows you to focus much better on the needs of a particular target, which will feel more identified with our online store.
  • This reduces costs with suppliers because by concentrating sales volume on a few products, better prices can be negotiated.

Arguments against a small directory

  • This increases the risks as we work with fewer products. This forces us to be very confident in what we are selling and do thorough market research.
  • Reduce the number of leads by focusing on smaller targets. Therefore, it is necessary to increase marketing efforts to achieve these goals.
  • This makes you much more dependent on multiple providers and they are no doubt aware of this.
  • This makes it harder to manage promotions and offers due to less variety in the fields.
  • This makes you more vulnerable to competition, especially if you are not producing or adding value to the product.

Each directory type has its pros and cons. But with the right approach, it will be possible to make good profits from your store both with a wide catalog and with a narrow one. If you want to implement your project at the highest level, then you should contact https://dinarys.com/ecommerce-catalog-management-services.