Intro
ROIH enables retailers to ensure that Own Brand goods are given appropriate exposure, and that individual SKU performance is shared not only with Merchandising and Marketing but to their supply chain, which improves performance across the entire product lifecycle.
Problems leading to this product strategy
1st party brand goods are often not reflected in marketing execution which can dilute impact on profit
3rd party brand goods are often a subject of broader engagement and market share which is supposed to be present (or not) in advertising
Profit from 1st and 3rd party products is often calculated differently. While 1st party products (own brands) are controlled via margin, 3rd party products are sold with commission for the platform usage
Why ROI Hunter?
Visibility of spend, revenue, etc distribution among 1st and 3rd party products
Applying different strategies to different product lines
Reporting of impact when applying different “margin” rules
Solution
Splitting the inventory into 1st party and 3rd party segments in order to control budget allocation
Applying merchant product strategies on top of 1st party products
Applying marketplace growth priorities to the 3rd party products (eg: vendor lists, promotions)
Data Requirements
Mandatory: 1st and 3rd party products labelling (e.g. custom label value, special category, product type, etc)
Optional for commission calculation: Commission data for 3rd party products
Supplied in a product feed as a custom column
Exported daily from an internal system as a CSV file through: HTTP, S3, (S)FTP