beverages, beer crate, beer, bottle, beer bottles, drink, thirst, glass bottles, replenishment, alcohol sales, bottled beer, alcohol, drunkards, seeks, addicted, dependency, beer, beer, beer, beer, beer, beer bottles, beer bottles, replenishment
Photo by maxmann on Pixabay

Inventory Planning

Part of Subscription commerce for physical products

Choosing products customers need repeatedly

Screen products for repeat need, usable quantity, supply and delivery fit before offering automatic recurring shipments.

A replenishment candidate solves a returning need, in a quantity the customer can use before the next delivery. Start with actual patterns of use. Repeat sales may suggest an opportunity, but they do not show whether a fixed subscription interval suits those customers.

For each candidate, identify who uses it, what runs out, when more is needed, and why automatic delivery helps more than another one-off purchase.

Find the need behind repeat orders

Review purchase histories where available, then ask customers what each purchase was for. Two orders might reflect routine use, a gift or a temporary project. Note the time between purchases, quantity and changes in pack size.

Ask how much was left when the next order was placed. That can reveal whether the proposed delivery interval is suitable.

Speak with people who buy similar products elsewhere too. They may use the category regularly without repeatedly buying from your store. Ask what influences their current choice and whether they want a standing order.

Screen the physical product

Work through these questions for each candidate:

  • Need:Does the same customer have a clear reason to buy it again?
  • Use:Can the quantity and interval suit their rate of use?
  • Suitability:Will it remain useful and appropriate until needed?
  • Supply:Can you reliably source the promised item or variant?
  • Delivery:Can you pack and send it at a workable cost?
  • Choice:Would automatic delivery help, or does the customer need to approve each purchase?

A product may meet a repeat need but fail the other checks. An occasionally used bulky item may leave unwanted stock at home. A heavily personalised item may call for a new choice each time. Such products may fit one-off purchases or reminders better.

Match quantity and frequency

A single monthly parcel can poorly serve customers who use the same item at different rates. Consider different pack sizes, intervals or both. Explain when a requested change takes effect.

Do not infer a general rate of use from a few enthusiastic customers. Look at the range of answers and identify whom the proposed plan would suit. If it works only for a narrow group, describe it for that group.

Check value and cost

Ask what the recurring delivery does for customers. It might prevent a gap in supply or save a shopping task. Compare that benefit with the charges, parcel frequency, storage at home and effort needed to change or cancel.

A discount cannot make an unsuitable quantity or interval useful.

Estimate the cost of repeatedly supplying the proposed quantity, including packaging, fulfilment and delivery. If the economics depend on sending more than customers use, reconsider the format.

Select candidates for a demand test

Shortlist products with a specific repeat-use hypothesis, a workable quantity and interval, and a supply plan you can explain. Record the evidence and unanswered assumptions for each. Then test the offer with clear recurring terms before building a larger catalogue.

More from Inventory Planning