E-Commerce: More Than A Simple Sales Channel

Today, purchasing decisions begin online, even if the purchase is made in a store. E-commerce plays a special role in purchasing and is more than just a pure sales channel. In times of automation and AI, success depends on collecting the right data and implementing it in a targeted manner in strategies and optimizations.

A large proportion of consumers research products online before making a purchase – whether it's about product availability, price or user reviews. A Forrester study shows that 70 percent of all purchases are digitally influenced. In-store retail remains important, but digital touchpoints play a crucial role in the customer journey. A strong online presence is essential to attract and retain customers. If the brand is weak online, sales in the store suffer. A consistent omnichannel experience is the solution for combining both worlds.

Marktetplaces: Competing for visibility

Online marketplaces such as Amazon, Zalando or Otto dominate digital commerce and play a key role. In Germany, Amazon alone generates 53 percent of e-commerce sales – and the trend is rising. A presence on these and many other marketplaces seems indispensable for brands today. But this can quickly lead to a loss of control. According to analysts like Gartner, many manufacturers have no idea how their products are displayed on marketplaces. Often, they don't even know which platforms their products are being offered on. Without continuous monitoring, brands can lose their visibility, their established image and ultimately their sales. This is where solutions from the field of Digital Shelf Analytics (DSA) come into play.

The importance of Digital Shelf Analytics

DSA enables you to monitor all digital touchpoints and derive targeted measures to optimize your own product presentation with the help of intelligent data evaluation and AI. The main areas covered by DSA include:

• Product availability: Are products visible and available online? Missing availabilities lead to high sales losses.
• Product content: Are descriptions, images and other content complete and on-brand? Missing or poor content can reduce conversion by up to 30 percent.
• Reviews: Customer reviews are a crucial factor for success. Poor reviews not only harm sales, but also damages the brand image.
• Competitor analysis: DSA helps to monitor the activities of competitors and to identify own weaknesses.

Content is king – but only if it's optimized

A successful digital presence requires optimized content. From product descriptions to visual elements such as images and videos, everything must be tailored to the specific requirements of the respective platform and users. Content should not be created just once and then forgotten. It must be continuously checked, adapted and optimized. Poor product data not only harms sales, but also customers' trust in the brand. The key is to use the data from day-to-day business in a targeted way: it provides valuable insights for continuously adapting content and improving the overall result.

Data-driven success: Learning from Shein and Temu

Shein and Temu are leading the way in data-driven e-commerce. Shein collects huge amounts of data every day from social networks like TikTok and Instagram to identify and act on trends early. The fashion group launches thousands of new products every day, tailored to the needs of its customers. This data-driven agility gives them a huge competitive advantage.

But the data-based approach doesn't end with trend analysis. The company also uses the information to quickly check which products are performing, which trends are not worthwhile and where there is further potential – in many places with AI and automation. This systematic approach helps Shein decide which products should be given more time and resources. This enables the company to react to market changes in a flash. Brands that shut themselves off from automation and data-based optimization will quickly be left behind by more agile competitors.

Break up silos, set priorities

To really take advantage of all this potential, it requires all areas of the company – from customer service to supply chain to marketing. It is not enough for individual teams to work separately and more or less in the same direction. Only when companies align their strategy holistically and integrate all relevant teams can digital sales channels be managed efficiently. Some companies even go so far as to establish digital shelf owners that operate across the board and ensure that all areas are working towards a common goal.

In order to successfully implement the data-driven approach, clear prioritization is needed given the large number of platforms. Instead of serving all e-commerce platforms equally poorly, companies should focus their resources on the most important channels and products and create a process for data collection and subsequent optimization there. High performers and bestsellers deserve special attention as they have the greatest influence on performance.

Conclusion: The future belongs to those who act in a data-driven way (now)

E-commerce is much more than just a sales channel – it is a strategic tool for brand building, customer retention and growth. Brands that invest in automation and data-driven monitoring today will secure a decisive competitive advantage and lay the foundation for sustainable success. The question is not whether to act, but how quickly. Those who hesitate will leave the playing field to their data-driven competitors – and risk falling behind.