Using Shopify POS to Maximize Impulse Purchases with Strategic Product Placement
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Using Shopify POS to Maximize Impulse Purchases with Strategic Product Placement

September 10th, 2024

Placement and display of your products can directly impact sales. Are you merchandising your items for peak selling? Let's discuss...

Sunrise Integration
  by Sunrise Integration

It’s no secret that where you place your products within a store significantly affects how they sell. Customers are naturally drawn to eye-catching displays or products placed at eye level and strategically positioning items can drive impulse buys.

 

Maximizing impulse purchases and boosting product sales is more than just stocking the right items, it requires a retail strategy. Did you know that strategically placed products within your shop can turn a simple customer errand into a larger purchase? Customers typically walk into a store with a specific shopping list, so you need to grab their attention. Your goal as a merchant is to place products where they’ll have the most impact. This placement process is known as "merchandising."  You may have an instinct for where to place high-demand products however real data can take the guesswork out of the equation. Let’s explore how using data-driven product placement can turn browsing customers into buyers.

 

unlock more sales by smartly placing products within your shop

The Importance of Impulse Buying in Retail

 

Impulse purchases often account for a significant portion of your store’s revenue. These unplanned purchases are typically driven by a customer’s immediate reaction to a product they weren’t initially seeking. When it comes to impulse purchases, you want to maximize spontaneous, unplanned buys. You want to create opportunities for customers to walk through your store and randomly grab an item because it catches their eye. They may not have intended to purchase that product but something sparked a desire within them. These quick decisions happen when a product is smartly positioned and draws attention in just the right way.

 

Creating opportunities for impulse buying is the difference between an average and outstanding day in sales. Products placed near high-traffic areas such as checkouts, entrances, or heavily frequented aisles are more likely to catch a customer’s eye and encourage an extra purchase. We've all seen the magazines and gum at the super market checkout. There is a reason those items are displayed at that location in the store.

 

Consider a clothing store that wants to increase sales of its accessories. Rather than leaving scarves and belts scattered throughout the store, consider placing them in high-traffic areas. For example, putting them on rack near the changing rooms where customers can grab them while trying on clothes. This is how smart placement can generate higher AOV (average order value.) You need to test certain areas of your shop as affective selling spots.

High traffic areas are good impulse items

 

High-Traffic Areas and Impulse Buys

 

Retailers know that high-traffic areas are a goldmine for impulse buys. Finding out exactly which products perform best in these spots takes some trial and error. You can start by placing small, low-cost items near the checkout counters. This could including items like candy, noveltes, sun glasses or gloves. You're banking on customers making an additional purchase as they wait or browse.  A bookstore, for example, might place best-selling novels on display by the register. Then, by analyzing daily sales data, you can uncover which items sell better at these impulse locations. Leveraging this data-driven approach allows you to maximize revenue by making every inch of your store work harder.

 

Wouldn't it be great if there was a app to help with this type of placement and discovery? Luckily there is a solution for Shopify POS retailers.

 

pos services

 

Using Technology to Optimize Product Placement

 

Your in-store point-of-sale system is the brain for your retail shop. Every order, customer and product goes through the POS. That makes it a powerful tool for analyzing store data. It's an obvious way to track your sales data but you may not realize that other useful information lurks within the system. With the right tools you can turn your POS into a powerful placement tracking and optimization platform.

 

Shopify POS is leading the charge with modern point-of-sale (POS) solutions that support third-party applications.  The Select Merch app is designed to leverage the unified Shopify solution and provide businesses with a means to track product sales based upon display areas. By analyzing sales data tied to specific placements, you can see which areas are generating the most product interest. You can then rotate items  between these "hot spots" and maximize sales and impulse buys using real time data.

 

The Select Merch app will tell you which products sell better when placed near the entrance and which perform best near the checkout. This insight lets you rearrange products to test different spots for their selling  potential. You can continually optimize for better performance.

Strategic Testing of Product Placement

 

With Select Merch, you can easily A/B test different placements to determine which products sell best in certain spots. Testing involves placing similar products in different areas of your store or trying different product categories at the same location. For example, a beauty supply store might place small skincare samples near the register and then switches it to a hair accessory the next week. Using Select Merch to track the sales of that placement location, you can determine which items provided higher impulse purchases. Use the app to experiment with different setups and find the best possible configurations for maximizing sales. The app let's you create an outline of your store's display locations to easily track the sales.

 

Use Select Merch to track your Shopify POS products in-store.

The Long-Term Benefits of Data-Driven Layouts

 

Regularly tracking and adjusting your store layout can help fine-tune your merchandising strategies over time. By understanding which sections of your store consistently generate sales, you can better manage inventory, anticipate customer preferences and design a more engaging shopping experience. This constant optimization leads to higher conversion rates, improved customer experience and increased profits. Using data-driven tools like Select Merch and Shopify POS make this an easy solution so there's no reason not to do it!

 

get sales reports from Select Merch

Maximizing in-store purchases requires more than just putting products in high-traffic areas and hoping for the best. You need a data-driven approach to ensure your store is optimized for maximum impact. Whether you’re running a small boutique, a large retail chain, or a grocery store, understanding how product placement drives sales will help you make smarter decisions and increase sales.

 

The Benefits of Using Data to Optimize Layout

 

Optimizing your store’s layout and product placement offers several key benefits:

 

  • Higher Conversion Rates: By understanding which placements lead to sales, you can position your best products in high-traffic areas, ensuring they get the attention they deserve.

  • Increased Sales Efficiency: You’ll be able to track underperforming areas of your store and adjust displays to make better use of valuable floor space.

  • Improved Customer Experience: A well-organized store with strategic product placements makes it easier for customers to find what they’re looking for, enhancing their shopping experience and encouraging repeat visits.

  • Data-Driven Decision Making: No more guessing about which displays are working. Use sales data to make informed decisions and optimize your store layout on the fly.

 

use data for smarter product placement

 

The Future of Merchandising is Data-Driven

 

Retailers today need every advantage they can get to stay competitive. The Shopify Select Merch app offers a simple yet powerful way to transform your merchandising strategy by turning raw sales data into actionable insights. Whether you’re a small boutique or a large chain, optimizing your store layout based on real sales performance will lead to better customer experiences and increased revenue.

 

Take the guesswork out of merchandising and make every square foot of your store count. If you’re ready to maximize your POS sales through smarter, data-driven merchandising then reach out to Sunrise Integration today to learn how to transform your retail strategy.

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Tags:   ecommerce   merchandising