London, 30 October 2017 – The UK’s grocery retail sector wastes an estimated minimum of £30.4 million on failed product launches per year, according to new analysis from eCommerce analytics platform, E Fundamentals. Over £2.1 million of that is wasted through online grocery platforms alone, and new research has found that a contributing factor to this failure is that easily avoidable product listing fundamentals being overlooked online.
An important contributing factor in the successful launch of new products is their online listings with the major grocers. According to E Fundamentals’ new analysis of new product launches so far this year, inaccurate information and listings of new products online mean retailers are failing to reach shoppers when browsing, severely limiting the potential for new products to reach online browsers. The research found that over six in ten (63%) of the products analysed had errors in their listings with the major online grocery retailers. This included missing product ingredients and shortened product names, making them much harder for shoppers to find.
In addition, 71% of the new products launched fell outside of the top 100 search results on key product search terms, or, did not feature in the search results at all. Two of the products analysed weren’t listed on online retailers at all. This means that, due to this lack of visibility in retailer search functions, online shoppers could be unable to easily find three quarters of newly launched products through retailer websites – dramatically limiting their sales potential.
CEO and founder of E Fundamentals, John Maltman comments:
“When new grocery products launch, awareness of their availability is everything. For there to not only be errors in the listings of almost every new product we investigated, and for them to be not turning up in grocery retailers’ search terms when shoppers browse is completely undermining their potential to sell. Simply put, online shoppers just can’t find them to purchase.
“Online grocery retail may still be relatively new to shoppers, but it is tremendously influential and growing. For a small but growing number of people, online is swiftly becoming the ONLY way they get their weekly shop. If brands fail to get the fundamentals of their online listings right with retailers, the millions they invest in new product development and launch is simply money down the drain.”
About E Fundamentals
E Fundamentals is a British-built, eCommerce analytics service that helps major brand owners grow online revenues, through a growth-focused, highly relevant and simple to use service. Its technology serves clients by tightly monitoring their products’ performance across online retail channels against the unique framework called The 8 Fundamentals. In the UK, the E Fundamentals solution provides detail analysis and insights from all the major online retail players such as Tesco, Sainsbury’s, Asda, Ocado, Morrisons, Waitrose and Amazon, as well as specialist websites; and via their retail equivalents internationally. By acting on E Fundamentals' insights and tools, brand owners are able to gain significant competitive advantage by optimising online ranging, pricing, positioning, and promotion and from executing their category strategy with real-time insight. E Fundamentals major international clients include Nestle Purina, General Mills, Jacobs Douwe Egberts and Wilkinson Sword.
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