Out-of-Stock: The Most Dangerous Phrase in eCom

Online shopping has experienced a significant boom with the increased number of web users in the last two years due to COVID-19. Finding the desired product and discovering new ones have also contributed to the increased conversions on eCom platforms. The new peaked velocity of transactions has made managing out-of-stocks challenging for brands.

Stockouts mean the product is no longer available on the eCom platform and has multifold brand implications, not just limited to purchases/transactions.

Reasons and Implications of Out-of-Stock

The factors for product unavailability on the eCom platform can get segregated into mismanaged inventories, wrong product demand forecasts, supplier-side issues, etc. Whatever the reason, the customer becomes dissatisfied with the brand/seller and even more challenging to re-acquire, assuming all the problems get resolved, which is an impossible scenario.

Our eCommerce Intelligence Solution reviewed the change in the brand for grocery products and found that the switch is almost immediate. Customers don’t wait to buy “atta” until it arrives at the specific store and is available through the particular seller. Instead, they find alternatives for purchasing the product.

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