What strategies can brands use to improve performance and extend the lifecycle of underperforming SKUs before considering delisting?

In the current highly competitive landscape of Q-Com, where companies such as Zepto, Blinkit, and Swiggy Instamart set the industry standards, brands encounter significant pressure to ensure optimal performance of each SKU.

With limited digital shelf space, high platform commissions, and ever-shifting priorities, some SKUs might face delisting, threatening both visibility and revenue.

The question arises: Why do SKUs become delisted? This situation reflects the complex realities faced by brands:-

1. Shelf Space is Scarce: Platforms restrict SKUs per brand, making every listing precious.

2. Margins Are Razor-Thin: Due to high commissions, logistics costs, and advertising costs, only high-velocity SKUs survive.

3. Category Managers Hold the Keys: Frequent personnel changes and shifting priorities can disrupt even strong brand-platform relationships.

4. Consumer Demand is Unforgiving: SKUs that don’t quickly prove themselves risk being replaced by faster movers.

Brand-Centric Solutions to enhance SKU Lifecycle:-

1. Focus on Product-Market Fit: Use Q-Com data, keyword research, & consumer feedback to identify demand. Treat underperforming SKUs as experiments & adjust positioning or pricing based on feedback.

2. Optimise Listings Continuously: Analyse top competitors' listings for insights on titles, images, & pricing. Test and update visuals and copy to improve CTRs and conversions.

3. Build Platform Relationships: Go beyond the SPOC. Establish connections with category managers and platform teams for better visibility and pilot opportunities. Share insights and performance data proactively.

4. Innovate On-Platform Marketing: Use the Q-Com budget for sponsored listings, exclusive offers, and time-limited deals to boost visibility for underperforming SKUs.

5. Leverage Technology for Forecasting: Collaborate with analytics firms like RevQ India for predictive analytics to manage inventory and anticipate demand fluctuations while avoiding stockouts and overstocks.

6. Decide When to Pivot or Exit: If a SKU shows persistent poor performance, consider delisting or exploring NPD, channelling resources into products with higher potential.

The Brand Playbook: "Persistence, Innovation, and Partnership"

Resilient brands in Q-Com view every SKU as a dynamic asset, leveraging data for optimisation and marketing. They foster strong relationships with platforms, invest in on-platform brand building, and utilise technology to tackle demand and inventory challenges.

Next Steps:-

- Validate each SKU’s market fit before scaling.

- Focus on data-driven optimisation and marketing.

- Strengthen relationships within the platform hierarchy.

- View underperformance as a learning opportunity.

Ready to future-proof your Q-Com portfolio? Connect with us to unlock the full potential of every SKU, including those at risk of delisting.