Product Assortment Analysis

How to Conduct Effective Product Assortment Analysis

Product Assortment in Retail

Product assortment in retail refers to the range of products offered by a retailer or brand to its customers. It involves carefully curating a selection of products to meet the diverse needs and preferences of the target market. Assortment analysis on the other hand refers to the study and optimization of existing products. A well-planned assortment helps attract customers, drive sales, and enhance customer satisfaction.

For example, let’s look at a cosmetics brand on an e-commerce store that offers diverse products including makeup, skincare, haircare, fragrances, and beauty tools.

This attracts a broad audience, meets various customer needs, and fosters repeat purchases, leading to increased loyalty and business growth. Regularly analyzing customer feedback and market trends helps the brand stay relevant and successful, leading to more revenue growth. 

Unusual changes online in share of assortment in some categories

Image Source: Data Impact

Importance of Assortment Analysis in Retail

Assortment analysis is crucial for Ecommerce success as it helps retailers understand which products are performing well and which ones are underperforming. By analyzing the data, retailers can make informed decisions about product selection and optimize their offerings to meet customer demand effectively.

The impact of product assortment on customer experience and loyalty is significant. When retailers offer a well-curated assortment that aligns with customer preferences and needs, it enhances the overall shopping experience, leading to increased customer satisfaction and long-term loyalty.

Furthermore, assortment analysis enables retailers to identify seasonal trends and consumer preferences, allowing them to plan strategic promotions and marketing campaigns. With these insights, retailers can align their inventory levels with anticipated demand, optimizing their supply chain and reducing carrying costs. 

Regularly conducting assortment analysis also facilitates agility in responding to market changes, ensuring that the product offerings remain up-to-date and in tune with customer expectations.

Key Steps to Perform a Comprehensive Assortment Analysis:

  1. Define Business Objectives and Target Market: Clearly articulate the goals of the assortment analysis and identify the specific customer segments you want to target.
  2. Gather Data: Collect relevant data on sales performance, customer behavior, and inventory levels for each product in your assortment.
  3. Identify High-Performing and Underperforming Products: Analyze the data to identify top-selling products as well as those that are not meeting sales expectations.
  4. Analyze Competitor Assortments and Market Trends: Understand your competitors’ product offerings and stay updated on market trends to spot potential gaps or opportunities in your assortment.
  5. Conduct Customer Surveys and Feedback Analysis: Gather feedback through surveys or online reviews to understand their preferences, pain points, and product demands. This insight can help refine the assortment to better align with customer needs.
  6. Optimize Assortment and Plan Assortment Expansion: Based on the insights gained from the analysis, make informed decisions about product assortment optimization. This could involve discontinuing underperforming items, introducing new products to fill gaps, and planning for seasonal or trend-based assortment expansions.

Optimizing Product Assortment in Retail

Segment Products and Customers for Personalization: Group products based on attributes and create tailored assortments for different customer segments, enhancing the relevance of the offerings.

Leverage Customer Feedback and Reviews: Gather insights from customer feedback and reviews to refine product diversity and address customer preferences and pain points.

Balance Core Products vs. Seasonal or Trending Items: Maintain a healthy mix of staple products and seasonal/trending items to cater to regular customers while attracting new ones.

Implement A/B Testing: Use A/B testing to experiment with different product combinations and determine which assortments drive better sales and customer engagement.

Tools for Effective Assortment Analysis

Assortment planning

Image Source: Retail Dogma

E-commerce Analytics Platforms

E-commerce analytics platforms provide retailers with data visualization and actionable insights into their product performance, helping them make data-driven decisions.

One such tool is 42Signals. With its user-friendly interface and robust features, 42Signals helps retailers to effectively analyze and optimize product diversity. Its advanced data visualization capabilities and actionable insights, enable retailers to make informed, data-driven decisions to curate compelling product offerings that align with customer preferences. 

Advanced Analytics for Optimization

Techniques like digital shelf analytics enable retailers to monitor how their products are displayed across various online platforms, while the voice of customer analytics helps capture customer sentiments to fine-tune assortments.

Integrating Analysis with Inventory

By integrating assortment analysis with inventory management systems, retailers can ensure that the right products are stocked in the right quantities to avoid stockouts and overstocking.

Automating Updates for Improvement

Automating assortment updates based on real-time data allows retailers to continuously optimize their product offerings, keeping them relevant and competitive.


Effectively analyzing and optimizing product varieties in retail is a critical success factor for e-commerce businesses.

Interested in optimizing your retail product assortment? Get in touch with us today or schedule a demo –

Frequently Asked Questions (FAQs)

What is assortment analytics?
Assortment analytics refers to the process of analyzing data related to a company’s product offerings to optimize its product assortment strategy. This involves examining various factors such as customer preferences, sales trends, inventory levels, and pricing strategies to identify opportunities for improvement.

What is an assorted analysis?
An assorted analysis is a comprehensive evaluation of a company’s product offerings across multiple dimensions, including style, price, size, color, and other attributes. The goal of an assorted analysis is to identify patterns, trends, and gaps in the product strategy that can inform decision-making. This type of analysis typically involves segmenting products by category, comparing performance metrics, and identifying areas for improvement.

What is an example of a product assortment strategy?
A common example is known as “depth vs. width.” This strategy involves offering a deep range of products within a narrow set of categories, or a shallow range of products across a broader set of categories.

For example, a specialty running shoe store might focus exclusively on athletic footwear, carrying a deep assortment of shoes from a variety of brands and styles tailored to specific types of runs and workouts. Alternatively, a general sporting goods store might carry a shallower assortment of running shoes but offer a wider range of sports equipment and apparel.

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