Lofty was approached by an eCommerce platform which manages over a million SKUs on Amazon and eBay. Their business model is uniquely successful due to a high emphasis in process management and automation.
Managing a high volume of SKUs is extremely cumbersome and error prone. Prices must be re-evaluated constantly to maintain a consistent margin. Factors include upstream changes in the supply chain, shipping cost fluctuations, inventory constraints, and more. Delays in communicating these pricing updates to the channel can result in net losses over costs of goods sold, lost sales, and penalties by the eCommerce channel or supplier. Maintaining the pricing of such a large catalog proved to be massively inefficient when done by hand and using spreadsheets.
Lofty developed a centralized pricing platform which is able to calculate the instantaneous ideal price of any SKU in the client's inventory based on user-managed formulas. Using this information, the platform is able to monitor prices on the eCommerce channel and update them immediately if the price is incorrect. This immediate price verification allows prices to be set formulaically, and the platform automates the process of setting new prices when underlying costs and shipping rates shift in the supply chain. All without human intervention! As a side effect, the client noticed an immediate reduction in pricing discrepancies caused by human error.