A stockout occurs when a SKU that a customer desires is unavailable. This challenge is particularly common in industries like fashion retail, where certain colors or sizes consistently outperform others. When some SKUs sell out while others remain overstocked, this is known as fragmented stock.
For example, standard sizes like Small, Medium, and Large often sell faster than less common options like Extra Small or Extra Large.
Identifying these trends early can help reduce advertising spend for sold-out variants, enabling you to focus resources on better-stocked products.
Benefits of Addressing cut sizes:
Increased Ad Budget Efficiency: Avoid wasting money advertising items which do not have core sizes.
Lower Bounce Rates: Reduce instances where customers leave after discovering their preferred option is out of stock.
Improved Conversion Rates: Present a more accurate inventory to customers.
Enhanced Customer Satisfaction: Minimize frustration caused by unavailable SKUs.
Setting Up for Success
To effectively address fragmented stock, ensure your inventory management system is properly configured:
Establish a Product Hierarchy: Set up inventory with at least two levels of granularity.
Each variant (e.g., size, color) should have its own unique ID in your feed.
Monitor Out of Stock Out percentage:
Define a threshold for low availability. For example, a Stock Out Score of 30% indicates that fewer than 30% of a product’s variants are in stock, while 100% means all variants are available.
Check Inventory Configuration: Review your inventory setup and reach out to support team as needed to ensure compliance.
Configure Core Sizes: Once you have the core size defined for the brand, Navigate to Sidebar > Save Budget > Core Size Configuration to set the stock status rule.
Available Rules are as follows -
Tag all products in catalog as In-Stock: This condition tags all the products as instock.
Tag as In-Stock, if the parent product availability is in-stock: This condition tags the product as instock if parent product is instock.
Tag as In-Stock, even if one variant of a product is in-stock: This condition tags the product as instock even if one variant of a product is instock.
Tag as Out of Stock, even if one variant of a product goes out of stock: This condition tags the product as out of stock even if one variant of a product is out of stock.
Tag as In-Stock, only when the total percentage of in-stock variants is greater than x%: This condition tags the product as instock if total percentage of instock variants for a product is above the defined percentage that one gives while setting the rule up.
Tag as In-Stock, only when the total number of in-stock variants is greater than x: This condition tags the product as instock if total number of instock variants is greater than the defined number that one gives while setting the rule up.
Tag as In-Stock if the following variant size are in-stock: This condition tags the product as instock if all the sizes defined as core sizes in the condition are instock. Here you have to define the core sizes.
Tag as In-Stock if any of the following variant size is in-stock for Categories: This condition tags the product as instock if percentage of instock variants for a category are above the defined percentage for that category. You will be asked to define the percentage of instock variants for categories where no core size is defined.
Segment your inventory by Stock Status to prioritize advertising spend effectively:
Assess the total spend directed toward fragmented stock. High spend on low-availability products signals an opportunity to reduce wasted ad spend. Avoid removing too many items from advertising at once, as this could disrupt overall account performance.
Best Practices
Regularly monitor and adjust your campaigns to reflect inventory changes.
Use stock status insights to guide restocking decisions and reevaluate slow-moving variants.
Continuously optimize ad targeting based on availability to maintain a balance between customer satisfaction and cost efficiency.
This approach ensures better ad efficiency, improved customer experiences, and sustainable inventory management.