High margin, High volume, High velocity – Which do you prefer?

Let's say we have three products: high margin and low volume, low margin and high volume, and low margin and fast selling. Which product do you want to sell as an entrepreneur? Generally, the most common answer is that we should sell the highest margin product. But, from an Return on Investment (ROI) or Return …

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MFN vs FBA vs 3PL – Different types of Amazon sellers

There are broadly two types of sellers on Amazon distinguished by the delivery models. One set of sellers stock their inventory in Amazon warehouse and list the product on the website and, as and when there is a customer order, Amazon will directly ship that product to the customer from Amazon's warehouse. This model is …

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Wholesale market in India

Wholesellers are none but middlemen who buy products from distributors (wholesale/retail) and sell them to retailers. In most cases, the retailers come to the wholesellers to buy products to replenish their stock. However, wholesellers may also sell to end consumers, but such sales are minimal. In the Indian FMCG market, we have broadly two types of wholesellers: 1. …

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Cash & Carry retail in India

Cash and carry is a membership based retail store selling limited SKUs in bulk packs. Cash and carry has a membership requirement. Customers are usually members of the club and pay an annual fee in order to continue their membership. It is not like any other retail outlet where in one can go and buy …

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Planograms

The planogram is a visual diagram, or drawing, that provides in detail where every product in a retail store should be placed. These schematics not only present a flow chart for the particular merchandise departments within a store layout but also show on which aisle and on what shelf an item is located. A planogram …

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Wal-Mart pricing

In mid-1999, Wal-Mart had 2,435 big-box discount stores in nine countries selling everything from Barbie dream homes to handbags and Prodigy CDs. The recipe that made Wal-Mart the largest retailer in the world, hauling in $ 137 billion in sales in 1998, is very straightforward. First build stores two to three times the size of …

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Logistics is the key for retail growth in India

The retail sector in India, both organised and unorganised, is set to grow at a rapid pace over the next few years. Retail India is currently ranked as the fifth larest globally, contributing to over 5% of the country's GDP.  India has also been ranked as one of the most attractive investment destinations in retail …

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How consumers think of prices in retail

Research has proven that consumer doesn't think about price in a linear manner about the MRP. In fact, when the consumer walks into a retail store he has some standard items based on whose price he decides whether the store is expensive or not. Consumers when they walk into a store will have a perception …

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