An e-commerce beauty retailer offered over 18,000 SKUs across skincare, makeup, haircare, and wellness categories. Despite the large assortment, sales were concentrated in a small subset of products, and conversion rates were declining. Customers reported difficulty navigating the large selection, while slow-moving products consumed valuable warehouse space and capital. The company was experiencing margin compression due to excessive promotional activity needed to move aged inventory.
Redesign the product assortment using data analytics to improve customer experience, increase conversion rates, and boost both revenue and profitability.
Analyzed 24 months of transaction data including browsing behavior, basket composition, and conversion paths
Segmented customers into 8 personas based on purchase history and browsing patterns
Performed cohort analysis to identify which assortments drove higher conversion rates and basket size
Mapped product relationships and complementary items to optimize bundle recommendations
Eliminated 3,200 underperforming SKUs with sub-zero contribution margins and minimal customer interest
Expanded assortment in high-converting categories by 420 new, strategically selected SKUs
Implemented dynamic assortment engine that personalizes product selection by customer segment and browsing context
A/B tested assortment layouts and product discovery mechanisms to optimize conversion
Customer behavior analysis and product performance tracking using SQL, Tableau, and advanced analytics to optimize assortment.
Analysis Tool: Tableau
Analysis Tool: SQL + Power BI
Analysis Tool: Excel
Sales Increase
Margin Improvement
Product Velocity
Optimized assortment increased overall sales by 24% through improved product discovery and reduced decision fatigue. Gross margin improved by 280 basis points as promotional intensity decreased and full-price sell-through increased. Average product velocity improved by 52%, with faster-turning inventory reducing storage costs. Customer conversion rate increased from 2.1% to 2.8% as navigation improved and product recommendations became more relevant. Inventory turns improved from 6.2x to 8.4x annually. The dynamic assortment engine enables continuous optimization based on real-time customer behavior and market trends.
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