How Many Products Should Your Ecommerce Business Sell?

When operating an ecommerce business, particularly if your storefront is relatively new or you are transitioning into new product areas, it can be quite difficult to know how many products you should sell.

At times, asking how large your product range should be can almost feel like asking about the length of a piece of string; every single online store and ecommerce business will have a different answer because they each target a different customer base.

Some very successful online stores will sell fewer than ten products, whilst others will sell tens of thousands of different products and handle just as many SKUs. But whilst this can provide hope, particularly for specialist shops selling to a devoted but niche clientele, it does not provide much clarity.

How wide should your product range be? Here are the advantages and disadvantages of either playing it safe or going big, as well as how a dedicated third-party logistics goods fulfilment service can help you to scale from one to the other.

Is A Small Selection Best For Your Ecommerce Business?

Most businesses start small, choosing a curated mix of products that they trust to be popular and consistent sellers with their audience. Sticking to a small collection makes it easier to shape your brand’s identity, ensure you only sell high-quality goods and allow you to adequately supply and ship anything you do sell.

However, this comes at the expense of many potential sales, as you inherently lock out a significant number of potential customers.

Pros Of A Small Product Range

• Inventory is easier and more affordable to manage.

• Less initial capital risk, allowing you to test

• Goods fulfilment is easier, faster and less prone to error.

• Fewer products often coincide with better selections for each product type.

• Opportunities to provide a curated selection which appeals to customers.

Cons Of A Small Product Range

• Fewer products mean an inherently limited customer base.

• Higher potential for missed sales and lower conversion rates.

• Customer retention is reliant heavily on customer experience rather than choice.

• A lower chance of meeting customer needs.

Is A Huge Selection Best For Your Ecommerce Business?

By contrast, some stores opt for a more ambitious approach, aiming to be a one-stop shop for a particular product category. This is particularly true if you sell parts or components which vary considerably, often found in automotive and hobbyist markets.

Whilst this very much increases your chances of attracting customers and even potentially retaining them through potentially having other products they need, it comes at the expense of focus, quality and cost itself. 

The more you sell, the more space you need and the more complex your fulfilment operations will inherently be.

Pros Of A Large Product Range

• Higher potential for sales due to a wider choice for consumers.

• Greater chance at customer retention.

• Easier to attract a diverse range of customers by meeting their needs.

• Wider customer base.

Cons Of A Large Product Range

• Higher inventory management and fulfilment complexity.

• Greater initial risk

• Higher costs for warehouse and order management.

• Increased difficulty in maintaining a brand image and product quality.

• The potential to inadvertently compete with yourself.

Can You Scale Your Ecommerce Business Up?

The most inexpensive way to scale your business to meet the evolving demand of your customers is to work with a third-party logistics firm, which can help you to store inventory and fulfil orders at the rate of demand your customers expect.