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Does offering too many sizes lead to loss of sales?

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LPPC

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Hi all,

I am selling this night lamp on Amazon and it comes in different sizes. Right now I am selling 3 different sizes of it and I was wondering whether it would be wise to add 2 more sizes: one smaller than the smallest right now and one bigger than the biggest I am offering right now.

Would you think that it is likely that it would lead to a lower conversion rate of my product because people will have too many choices?

I think the best way to find out the answer to this question is to test it, but how? I think testing it would not be as easy as for example a split test for a Facebook ad, where you can change 1 thing and leave the rest the same. On Amazon other factors also play a role, like the amount of competition that is seen when one looks for this product.

Any idea on how to find the answer to this question?

Thank you!

Edit:

I would be able to offer the smaller size for 1 dollar cheaper than the next smallest size.
 
Last edited:

MHP368

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In general thats true and it would lead to a loss in sales. In psychology its called "overchoice"

However you have to take care to try and think of things from the customers perspective , even if you aren't paying for ads when someone searches "xyz size lamp" either directly on amazon or into google and then clicking the "shopping tab" they should be taken directly to the size fitting that description.


So too many choices might make someone vaguely interested in any sized lamp shy away but I think ultimately it would lead to more sales because someone probably knows going in that they want a bedside lamp vs a standing lamp or a small lamp for a childs room.


Also the phenomenon of overchoice , at least in my experience wouldnt apply at that scale (going from 3 items to 5) , its a problem if someone wants to buy a car and hasnt thought it through beyond that and arrives on a car lot with literally hundreds of varieties.
 

LPPC

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In general thats true and it would lead to a loss in sales. In psychology its called "overchoice"

However you have to take care to try and think of things from the customers perspective , even if you aren't paying for ads when someone searches "xyz size lamp" either directly on amazon or into google and then clicking the "shopping tab" they should be taken directly to the size fitting that description.


So too many choices might make someone vaguely interested in any sized lamp shy away but I think ultimately it would lead to more sales because someone probably knows going in that they want a bedside lamp vs a standing lamp or a small lamp for a childs room.


Also the phenomenon of overchoice , at least in my experience wouldnt apply at that scale (going from 3 items to 5) , its a problem if someone wants to buy a car and hasnt thought it through beyond that and arrives on a car lot with literally hundreds of varieties.
Thank you for your input. It makes a lot of sense indeed!

The difference in size would not make it bedside lamp vs a standing lamp, it is purely the size of the product. A standing lamp would have a totally different functionality and appearance. Would your viewpoint still be the same knowing this now?
 

LPPC

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For me it lead to more sales. You have more authority if you can offer more variations.
That is very good to know. Although I think there are limits to it, do you agree? I think for example 6 sizes for a night lamp might be overkill. Just a gut feeling.

Thank you!
 

Longinus

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Yes, but also depends on the product. Maybe start with 2 or 3 choices.
 

ShamanKing

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Interesting. I wonder what the price point difference will be between the three sizes.

For example,

- Small is $3.25
- Medium is $3.75
- Large is $4.00

The goal should be to attract customers to the medium if not large. That should be the bread winner. Think about buying popcorn and a diet Coke at the theaters.
 

EVMaso

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There's probably a sweet spot here based on niche/industry, something that testing might uncover. Maybe just try adding those sizes and seeing if people order them?

I used to sell T-shirts at conventions, first as an employee of a store (in the US) and then on my own in Canada. To be blunt, there are a lot of large men in certain parts of the US, so we stocked up to size 6X for shows in those areas, and those sizes mostly sold out. However in Canada, there are not as many large men. After a couple of shows and little to no movement of shirt sizes 4x-6x, I stopped ordering those sizes altogether.
 

LPPC

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Interesting. I wonder what the price point difference will be between the three sizes.

For example,

- Small is $3.25
- Medium is $3.75
- Large is $4.00

The goal should be to attract customers to the medium if not large. That should be the bread winner. Think about buying popcorn and a diet Coke at the theaters.

Let's say it would be like this:

- Extra Small (new addition) : 28 USD
- Small: 29 USD
-Medium: 34 USD
-Large: 35 USD
- Extra large (new addition): 40 USD

Each would have the same amount of profit.

Can you explain why we would want to attract customers to medium and large? You mean that we could price them higher and thus have bigger margins than the smaller sizes?


There's probably a sweet spot here based on niche/industry, something that testing might uncover. Maybe just try adding those sizes and seeing if people order them?

I used to sell T-shirts at conventions, first as an employee of a store (in the US) and then on my own in Canada. To be blunt, there are a lot of large men in certain parts of the US, so we stocked up to size 6X for shows in those areas, and those sizes mostly sold out. However in Canada, there are not as many large men. After a couple of shows and little to no movement of shirt sizes 4x-6x, I stopped ordering those sizes altogether.

Yes I will just order them and see how it goes. It is the only way to know for sure.
 

ShamanKing

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Let's say it would be like this:

- Extra Small (new addition) : 28 USD
- Small: 29 USD
-Medium: 34 USD
-Large: 35 USD
- Extra large (new addition): 40 USD

Each would have the same amount of profit.

Can you explain why we would want to attract customers to medium and large? You mean that we could price them higher and thus have bigger margins than the smaller sizes?




Yes I will just order them and see how it goes. It is the only way to know for sure.


Hey LPPC would you like to upgrade from medium to large for an extra dollar? Good luck. LMK how it goes.
 

LinorCG

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I think that's something you can test in little quantities (5pcs each maybe) at a time.
If you can use Amazon PPC for each variation then you can collect enormous data and see what variation is selling the most and restock that up. It's a good way to get data without spending a lot of money.
 

LPPC

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@Neng Her

Yes that is a very good point and I think it even applies to nightlamps. Actually I do have a higher margin and more sales on the bigger sizes.

Thanks!

@LinorCG

Yes PPC testing on Amazon would give very valuable data indeed. Good call. Thank you!

@Sanj Modha

Nice to have you here. I have read many topics of yours which were very helpful! Thanks for that!

The thing is that on Amazon there always are many choices which indeed could lead to analysis paralysis, but still I think the paradox of choice does apply to a single listing as well. I think your advice combined with @Longinus opinion of being able to deliver more variations gives you more authority leads me to think that adding 1 more variation, so in total 4 variations, would be the best choice. I would add a bigger size instead of the smaller one, because I can not imagine there being a lot of customers wanting a smaller version for 1 USD less.
 

CareCPA

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Any idea on how to find the answer to this question?
Test it.

Your most recent reply says you're going to offer one more size instead of two. What if you picked the wrong one? The one you deem more valuable may not be the one the market deems more valuable.

A lot of your posts on this forum tend to overthink and overcomplicate. You don't need to have 100% of the answer before you try something. Business is about continual testing.

Want to know if you should seal your shipping cartons? Test it.
Want to know if you should offer two more sizes? Test it.
Want to know if your Amazon listing should be parent/child or separate listings? Test it.
Want to know if you should change your packaging material/color/size/whatever? Test it.

Entrepreneurship is about trying and failing until you find something that works. A need to have definitive answers before making changes means that others will continue to beat you to market while you're sitting on the sidelines wondering "what if?"
 

LPPC

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Mar 6, 2016
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Test it.

Your most recent reply says you're going to offer one more size instead of two. What if you picked the wrong one? The one you deem more valuable may not be the one the market deems more valuable.

A lot of your posts on this forum tend to overthink and overcomplicate. You don't need to have 100% of the answer before you try something. Business is about continual testing.

Want to know if you should seal your shipping cartons? Test it.
Want to know if you should offer two more sizes? Test it.
Want to know if your Amazon listing should be parent/child or separate listings? Test it.
Want to know if you should change your packaging material/color/size/whatever? Test it.

Entrepreneurship is about trying and failing until you find something that works. A need to have definitive answers before making changes means that others will continue to beat you to market while you're sitting on the sidelines wondering "what if?"

Thank you for this constructive critisism, I love it! You are right that I should test things more and stop overcomplicating. I will follow your advice.
 

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