By Hemang Nathwani, CEO and Co-Founder at Price Trakker

For many eCommerce managers, range decisions are among the most expensive and hardest to reverse. Once buying commitments are made, capital is tied up, storage costs rise, and promotional pressure increases if demand does not materialise. Yet despite the impact these decisions have on margin and cash flow, they are still often driven by historic sales alone or by supplier-led recommendations.

Competitor data provides a valuable additional lens. When analysed properly, it helps retailers understand not just what sold in the past, but what is likely to sell in the future. Pricing, availability, and range breadth across the market reveal patterns that sales data on its own cannot.

Over-ranging: A key challenge

One of the most common challenges retailers face is over-ranging. In fast-moving categories, it is tempting to expand assortments quickly in response to trends or competitor launches. However, competitor data often shows that many retailers carry far more similar products than the market can realistically support. When multiple retailers stock near-identical items at similar price points, the result is usually margin erosion rather than incremental demand.

By analysing competitor ranges over time, eCommerce managers can identify which products are genuinely core to the market and which appear briefly before being discounted or delisted. Products that consistently remain available at stable prices across multiple retailers tend to indicate steady demand. Those that cycle rapidly through discounting and stock clearance often signal over-supply or weak differentiation.

Availability data plays a critical role here. If certain products repeatedly go out of stock across competitors, it suggests unmet demand. Retailers can respond by increasing depth in those lines or introducing close alternatives. Conversely, products that remain widely available while prices fall are often candidates for range rationalisation rather than expansion.

Tactics for smarter range decisions

Competitor pricing trends also support smarter range decisions. When a product category shows long-term price stability, it usually indicates mature demand and predictable buying behaviour. Categories where prices fluctuate heavily often reflect experimentation, trend-driven demand, or oversupply. Understanding which category you are dealing with helps determine whether range expansion is sensible or risky.

Range decisions are also closely linked to promotional planning. Retailers frequently overstock products in anticipation of discount-led demand that never fully materialises. Competitor data can highlight whether promotions are genuinely driving sell-through or simply shifting volume between retailers. If multiple competitors discount heavily and still hold stock, it suggests that demand is being overestimated.

Using competitor data for supplier negotiation and range optimisation

Another benefit of competitor insight is improved supplier negotiation. When retailers understand how widely a product is stocked and how quickly it sells through elsewhere, they gain leverage in discussions around pricing, exclusivity, and minimum order quantities. Data-backed negotiations tend to lead to more realistic commitments and lower risk.