Retail Technology Glossary

Automated bundling refers to the process of automatically grouping together multiple items to display together, often on a PDP. It involves using technological systems or software to streamline and automate the bundling process, reducing the need for manual labor and increasing efficiency.

Automated bundling systems often utilize advanced algorithms to identify and sort items based on predefined criteria such as size, shape, or SKU (stock keeping unit) information. It is most often utilized with home goods or other non-apparel retailers, bundling allows complementary products to be displayed together on the PDP, increasing average order value, as customers are more likely to purchase multiple items when displayed together. With bundling software, eCommerce websites can present customers with pre-defined or customizable bundles that provide value, convenience, and an enhanced shopping experience. This software facilitates the management of product combinations, pricing, inventory, and promotion of bundled offerings.

By implementing automated bundling, companies can achieve several benefits, including increased average order value, decreased labor time, and improved customer experience.

Automated Outfitting refers to the process of utilizing technological systems and algorithms to create outfits on PDPs, based on a core product. By leveraging data analysis, machine learning, and artificial intelligence, Automated Outfitting systems consider factors inventory, product categories, color schemes, and a number of other customized rules to generate ensembles.

Automated Outfitting aims to enhance the shopping experience, save time, and provide fashion inspiration by harnessing the power of technology to curate stylish and cohesive outfits effortlessly.

Automation is the utilization of technology, software, or mechanical systems to carry out tasks or processes that were previously performed by humans, enabling them to be executed automatically or with minimal human intervention. By streamlining and simplifying repetitive or time-consuming activities, automation enhances efficiency, accuracy, and productivity while reducing labor costs and human error. It encompasses a wide range of tools and technologies, from simple rule-based actions to advanced robotic systems and artificial intelligence algorithms, and finds application in various industries to optimize workflows and allocate human resources to more strategic endeavors.

Overall, automation enables organizations to achieve higher operational effectiveness and scalability by leveraging technology to perform tasks that were traditionally done manually.

Average Basket Size refers to a key metric used in the retail industry to measure the average value or quantity of items purchased by customers in a single transaction. It represents the average amount spent or number of products added to a shopping cart during a specific period, typically calculated by dividing the total sales revenue or total number of items sold by the number of transactions. The average basket size provides valuable insights into customer behavior, purchasing patterns, and overall sales performance. Retailers analyze this metric to understand customer preferences, optimize pricing strategies, identify cross-selling or upselling opportunities, and improve overall revenue generation.

By monitoring and optimizing average basket size, retailers can effectively evaluate and enhance their sales strategies to maximize profitability and customer satisfaction.

Average Inventory Cost refers to the average value of all the goods and products held in a company's inventory over a specific period. It is calculated by dividing the total cost of inventory (including the cost of purchasing or producing the goods and any associated expenses) by the number of items or units in stock. This metric provides insights into the financial investment tied up in maintaining inventory levels. By analyzing the average inventory cost, businesses can evaluate the efficiency of their inventory management and assess the impact of holding inventory on their overall profitability. It helps in making informed decisions regarding stock replenishment, pricing strategies, and optimizing supply chain operations.

Monitoring and managing average inventory cost is crucial for businesses to control expenses, minimize holding costs, and ensure sufficient stock availability to meet customer demand while maximizing profitability.

Average Order Value (AOV) refers to a metric used in the retail industry to determine the average amount of money spent by customers in a single transaction. It is calculated by dividing the total revenue generated from all orders within a specific time period by the total number of orders. AOV provides valuable insights into customer purchasing behavior, indicating the typical expenditure per transaction. Retailers analyze AOV to evaluate the effectiveness of their sales strategies, pricing models, and promotional campaigns. By monitoring and optimizing AOV, businesses can identify opportunities for upselling or cross-selling, tailor their marketing efforts, and improve overall revenue generation.

Increasing the average order value can result in higher profitability and improved customer lifetime value, making it an important metric for businesses aiming to optimize their sales performance.

Average Transaction Size (ATS) is a metric used in the retail industry to measure the average value or quantity of products purchased by customers in a single transaction. It represents the average amount spent or the number of items sold per transaction during a specific period. ATS is calculated by dividing the total sales revenue or the total number of items sold by the number of transactions. This metric provides insights into customer buying behavior and helps retailers understand the typical purchase size or quantity. By analyzing ATS, businesses can assess the effectiveness of their pricing strategies, promotional campaigns, and product assortment. Monitoring and optimizing ATS allows retailers to identify opportunities for upselling, cross-selling, or bundling, and adjust their sales tactics to increase the average transaction size.

Ultimately, improving ATS can contribute to higher revenue and profitability for retail businesses.

Average Transaction Value (ATV) is a metric used in the retail industry to measure the average monetary value of transactions conducted by customers during a specific period. It is calculated by dividing the total sales revenue generated by the total number of transactions. ATV provides insights into the average spending per transaction and helps businesses understand customer purchasing patterns. By analyzing ATV, retailers can evaluate the effectiveness of their pricing strategies, promotional efforts, and cross-selling or upselling initiatives. Monitoring and optimizing ATV allows businesses to identify opportunities to increase transaction value, such as offering complementary products or incentives for larger purchases. Increasing ATV can lead to higher revenue and profitability, as well as enhanced customer lifetime value.

ATV is a valuable metric for retailers aiming to improve their sales performance and maximize the value derived from each transaction.