Merchandising Strategies That Drive Sales Growth

7 proven ways to increase FMCG sales without discounts Discounts might seem like the easiest way to increase sales, but they’re also the fastest way to lose profits and damage your brand. There’s a better way. In 2013 when I started as a sales team lead in FMCG, I struggled. I relied on price discounts as the only way to increase my sales in stores, but this was unsustainable. Over time I learnt these 7 strategies and I’ve used them to double sales of established brands in retail outlets in 6 - 12 months. It is more sustainable for the company and your Bosses will love you. 1. Product visibility and placement. Shoppers buy what they see. Make sure your products are in the right place, such as eye-level shelves, hotspots, and checkout zones. 2. Strong retailer relationships. Retailers will champion your products if they feel valued and are incentivized. Offer quarterly rewards, better margins, or recognition programs to win their loyalty. 3. In-store communication. Your communication material in the store is your silent salesperson. Use clear, benefit-focused messages on materials like wobblers, banners, posters and shelf talkers to educate shoppers. 4. Right pricing. Help retailers stick to recommended prices. Educate them on their margins and how fair pricing improves volume and profits. 5. Product distribution. If it’s not on the shelf, it can’t sell. Fix stock outs, prioritize key outlets, and close distribution gaps to keep shelves full. 6. Shopper engagement through sampling. Sampling builds trust. Let shoppers experience your product firsthand through demos or activations in high-traffic stores. 7. Effective sales team execution. Your sales team is the engine. Train them, set clear KPIs, and give them juicy incentives to ensure great execution. Which strategy will you focus on first?

When a brand as iconic as Glossier, Inc. comes to you with a growth challenge, you pay attention. But what fascinated me most wasn't their status in DTC beauty — it was the counterintuitive problem they were trying to solve. Glossier’s story challenges a common assumption in DTC — that you have to choose between brand magic and performance marketing. When we first started working with them, Glossier had already built an iconic brand presence. But they faced an interesting challenge: their product pages had to serve too many use cases, making it hard to create targeted experiences for specific campaigns. Here's how they leveraged FERMÀT to bridge that gap: 1. Brand-Performance Harmony → They found a way to maintain their signature aesthetic while incorporating conversion elements → Smart move: pulling in educational content from their Sephora listings → This wasn't just about conversion — it was about enriching the customer experience 2. Payment Innovation → What I love about this: they identified a simple friction point (payment method visibility) and tested a hypothesis → By bringing Apple Pay to the PDP level before BFCM, they saw nearly 50% of purchases flow through this path → It's these seemingly small optimizations that often drive outsized results 3. Strategic Merchandising → Identified key SKUs for growth (their fragrance line was particularly interesting) → Positioned hero products above the fold with intentional discount pricing displays → What I love here: they let data drive merchandising decisions while maintaining brand standards 4. Launch Architecture → Their Black Cherry collection launch really showcases the power of alignment → Every touchpoint, from ad creative to checkout, told a cohesive story → This is what great merchandising looks like in the digital age Glossier has launched 24 new shopping experiences in 8 months, with 6 emerging as clear winners. They’ve seen up to 65% lift in ROAS and a 25% reduction in CPA across FERMÀT funnels. But what really strikes me about Glossier, Inc.'s approach is their commitment to learning. Each experiment, whether successful or not, informed their broader strategy. As Madeline Kuttner, their Director of Performance Marketing, said: "Working with FERMÀT has given our growth team the ability to cohesively align our ad-level creative and full-funnel experiences, bridging the gap between our brand vision and performance marketing capabilities." It's not about choosing between brand and performance; it's about finding creative ways to serve both masters.

The Hidden Power of Store Layouts: Maximizing Retail Success In retail, the store layout is the silent force shaping customer behavior, influencing purchases, and ultimately driving sales. It's not just about arranging shelves, it's about creating an environment that connects with customers and aligns with business goals. In my 16+ years in retail, I have witnessed how strategic layouts can: Guide Customer Flow Effortlessly: The path customers take inside your store matters. For example, most shoppers instinctively turn right upon entering. Placing key products or promotions in this area ensures maximum visibility. Clear signage and uncluttered aisles further enhance navigation, leading customers through the store naturally. By repositioning products to high traffic zones and pairing them with complementary items, one of my stores saw a 20% sales increase in just a month. Highlight High Margin Products: Eye level displays are prime real estate in any store. By placing high margin or seasonal products at this level, you can subtly encourage purchases. End caps are also highly effective for promoting premium or high-demand items. I repositioned high margin items, such as premium clothing and accessories, at eye level. We also utilized end caps to display bestsellers and seasonal promotions. Sales of these products increased by 18% in just two weeks, proving that visibility drives revenue. Increase Impulse Purchases: Ever noticed how checkout counters are stocked with small, tempting items? This is no accident. By placing low cost, high demand products near the point of sale, you can capitalize on last minute buying decisions. Similarly, creating “hot zones” around high traffic areas boosts impulse sales. Impulse purchase revenue grew by 25% in one month, contributing to overall sales growth. Real Life Example: At one of the stores I managed, we faced declining sales in a specific category. By simply repositioning these products to a high traffic zone and pairing them with complementary items, sales increased by 20% within a month. Small changes, big impact! Key Takeaways for Effective Layouts: Use the “Golden Triangle” Strategy: Position essential items, promotional displays, and high margin products within the most frequently traveled paths. Zone Your Store: Create sections based on product categories or customer needs, making it easier for shoppers to find what they are looking for. Refresh Regularly: Customers become blind to stagnant displays. Regularly updating your layout keeps the experience fresh and engaging. #RetailSuccess #StoreLayout #VisualMerchandising #RetailStrategy #RetailManagement #RetailGrowth #RetailInnovation #CustomerExperience

Building Blocks of FMCG Sales FMCG sales is not just about pushing products; it’s about building a structured system that ensures consistent growth, profitability, and brand presence. Think of it like constructing a house—you need a strong foundation, solid pillars, and a well-planned structure. Here’s how the Building Blocks of FMCG Sales work: ⸻ 1. Distribution Network – The Foundation Without a strong distribution network, even the best product won’t reach the consumer. This includes: • General Trade (GT): Traditional kirana stores, mom-and-pop shops. • Modern Trade (MT): Supermarkets, hypermarkets, organized retail. • E-commerce: Online marketplaces (Amazon, Flipkart, Blinkit, Zepto). • Direct-to-Consumer (D2C): Company-owned platforms, social commerce. ✅ Key to Success: Choosing the right mix based on brand strategy and consumer behavior. ⸻ 2. SKU Selection & Pricing – The Bricks • Hero SKUs: Your bestsellers that drive volume. • High-margin SKUs: Premium or niche products that boost profitability. • Entry-level SKUs: Affordable packs to increase trials. ✅ Key to Success: Balanced SKU portfolio with strategic MRP vs. trade pricing vs. consumer promos. ⸻ 3. Sales Team & Distribution Partners – The Pillars Your sales team & distributors are the backbone of FMCG sales execution. You need: • Distributors who invest in inventory, logistics & credit. • Sales officers who drive visibility, retailer relationships & demand generation. • Merchandisers who ensure shelf execution & planograms. ✅ Key to Success: Regular training, motivation, and clear KRAs (Key Result Areas). ⸻ 4. Retail Execution & Visibility – The Walls What’s the point of great products if they’re not visible or available at the right places? • Planogram Compliance: Right placement of SKUs (eye level is buy level!). • POSM (Point of Sale Materials): Shelf talkers, danglers, wobblers to grab attention. • Promotions & Schemes: Smart discounting & bundling to boost offtake. ✅ Key to Success: Mystery audits & data-driven merchandising. ⸻ 5. Demand Generation & Consumer Pull – The Roof • Advertising & Digital Marketing: TV, YouTube, Instagram, influencer campaigns. • In-store Sampling & Activations: Trial-driven approach to create loyalty. • Trade Promotions: Retailer incentives, loyalty programs. ✅ Key to Success: Balancing push (sales team effort) & pull (consumer demand). ⸻ 6. Data & Analytics – The Electrical Wiring No sales plan is complete without tracking: • Primary Sales: From company to distributor. • Secondary Sales: From distributor to retailer. • Tertiary Sales: From retailer to consumer. ✅ Key to Success: Smart use of technology (DMS, SFA, Nielsen, IQVIA) to drive insights. ⸻ Final Thought An FMCG business that ignores even one building block will have a weak structure. The best brands master each block and create a seamless, scalable, and profitable system. Which block do you think is most critical for growth?

A behind-the-scenes look at how you can get more sales on Faire... 📊 When Sunwarrior came to The Prosper Lab (our Faire growth team), they were struggling to gain traction on Faire. Despite having a strong Amazon presence and extensive retail distribution, their Faire sales were struggling with small and inconsistent orders. But – fast forward to now: In less than one year (Jan-Nov), we completely transformed their Faire presence—skyrocketing to a 413% YoY increase in sales. Here are the top 3 things we found worked to grow Sunwarrior's sales on Faire (and what you should try, too): 1. Visual Optimization (biggest ROI) Faire is first and foremost a *visual* marketplace (plus, the customers are buyers who visually merchandise shelves. For Sunwarrior, we: • Matched all leading product images across products • Mixed professional shots with customer UGC • Brought in select infographics from Amazon listing images • Customized the arrangement of the profile to put like products with like for easy merchandising decisions 2. Search & Keyword Optimization Want to acquire more customers on Faire? One of the key ways: optimize for the right search terms. For Sunwarrior, this meant: • Adding product-specific keywords to product names • Included those specific search terms in product descriptions • Writing product descriptions that were buyer-centric (not customer) • Updating collections based on seasonal buying patterns & keywords 3. Consistent Communication That Converts Once you have customers in your Faire account, only you can build a relationship with them. For Sunwarrior, we consistently: • Write 2-3 campaigns per week around products, promos, and other news • DM new customers, repeat customers, and customers with abandoned cart messaging • Use a combination of flash sales, tiered promotions, and reorder promos to drive higher AOV The results? Orders jumped from 15 to 90+ monthly with a 40% higher AOV. In Oct '23, Sunwarrior saw $4.8k in sales on Faire. But in Oct '24? That number jumped to $24.8k. But here's the thing: this wasn't an overnight fix. It took consistent tweaking and testing to find what resonated with Sunwarrior's buyers. And at Product & Prosper and The Prosper Lab, that's the name of our game. Small shifts ➡️ big impact to your sales.

Top-line growth through expansion areas is often the go-to but prioritising assortment optimisation can yield far greater benefits for long-term success. Attaining new top-line growth may seem simple—launching new categories or stores can quickly boost year-over-year revenue. However, without focusing on your business's current inventory health, such actions can lead to long-term complications and a less sustainable business. True merchandisers 🤓 find great satisfaction in revitalising and optimising struggling categories, locking in reliable and sustainable growth in a dynamic retail landscape. To safeguard profits, drive revenue, and enhance sell-through rates, all while maximising your product's potential, consider the following strategies: 💡 Leverage Inventory Health Check Metrics Gain a deep understanding and competitive edge when you have clarity on both driving factors and hindrances to business performance. Favourites include: Newness %, Sizing Availability, Core Line Out-of-Stock Rate, Markdown: Velocity & Depth of Discount, GMROI at all levels. 💡 Ensure Comprehensive Product Attribution Enrich product data with great attribution to accurately gauge customer demand by any product facet. This is invaluable insights for decision-making. 💡 Optimise Price Points Identify and capitalise on the pricing sweet spot, not only the sweet spot that’s acquiring you customers but also the sweet spot which is upselling and retaining customers for you. Invest and build on these and adapt as the market or customer base changes. 💡 Identify Core and NOOS Lines Prioritise Core and Never Out of Stock items to maintain consistency and meet ongoing demand. These items usually have higher margins and should have great stock turn due to predictable demand. 💡 Focus on Top-Performing Products Apply the 80/20 rule, concentrating efforts on the top 20% of products contributing to 80% of sales, while streamlining the long tail. The goal is to continually adapt and meet the customer where they’re at in terms of their demand for product. Focusing on key metrics that matter empowers teams to drive sustainable growth and adapt to the evolving market dynamics effectively.

Most brands treat their Amazon Brand Store like a digital brochure. That’s often a $1,000,000/year+ mistake in wasted potential. If your store isn’t functioning as a high-conversion landing page that dictates the customer journey, you aren’t "branding” You’re just leaving your unit economics to chance. True scaling requires a surgical approach to merchandising strategy. We don't just "organize" products; we tier them to fuel the flywheel effect. Here is the 3-step framework we use to audit storefront merchandising: -The Hero-First Hierarchy: Your best-selling "Drivers" must be the pattern interrupt on the homepage. If a customer has to scroll or click a sub-menu to find your top-rated ASIN, your navigation is broken. We prioritize high-velocity items to maximize immediate conversion. -Logical Cross-Pollination: Use your Brand Store to solve the "Fragmented Catalog" problem. Group complementary products not just by category, but by use case. If they buy the machine, the accessories should be one click away. This is how you increase lifetime value without increasing CAC. -Data-Backed Sub-Pages: We use Store Insights to identify where traffic "leaks." If a sub-page has a high bounce rate, it’s usually because the creative is too busy or the merchandising is irrelevant. Kill the fluff. Focus on clean, professional imagery that emphasizes the value prop. Stop viewing your store as a checkbox requirement. It is a strategic asset designed for hyper-efficiency. When you control the merchandising, you control the margin. Is your store built to look pretty, or is it built to convert? Below are all sample homepages Nectar has done for different brands

Here's why merchandising is more important than paid media in DTC... Most DTC brands don’t have a marketing problem. They have a merchandising problem. This is especially true with startups and mid-market brands. Here’s the cycle I see again and again: - CAC goes up - Teams panic, performance becomes more volatile - Blame attribution or creative or something else, switch agencies - Still no improvement - No one is paying hard attention to the assortment and product mix Great merchandising is the upstream unlock. Your PDP, AOV, bundles, promos, launch calendar, and product hierarchy drive immense value and enhance your performance. No amount of ad spend can compensate for a weak offer. Paid media is just a loudspeaker. Merchandising is what you’re actually saying. What I've seen the best brands do: - Rationalize SKUs around margin and velocity - Develop high-AOV bundles and easy gifts - Align launches to conversion windows - Build a cohesive calendar with commercial intent - Treat product development as a growth strategy Merchandising is your growth engine. Paid media is jet fuel. If your growth is stalling, don’t just spend your way through the problem set. Audit your offer. Review your site speed. Sharpen your calendar. Enhance your bundles, etc. Growth isn’t just a paid media problem... It’s a product and margin problem. #DTC #Merchandising #Media #PrivateEquity #VentureCapital

Case Study: How Better Product Placement Can Increase Retail Conversion Without Adding More Inventory A cosmetics retailer approached me with a common problem: Too many SKUs, inconsistent product visibility, and shelves packed so tightly that customers couldn’t quickly understand what they were looking at. The store carried hundreds of products across skincare, makeup, fragrance, and accessories. On paper, the assortment looked strong. In reality, customers were visually overwhelmed within seconds of entering the store. Instead of focusing on “fitting more product,” I focused on improving customer decision-making. Here’s what changed: • High-traffic zones were reorganized around hero categories instead of low-priority filler products • Best-selling and visually recognizable items were moved into eye-level visibility zones • Lower-performing SKUs were compressed to free up visual breathing room • Product duplication was used strategically to improve discovery from multiple walking paths • Traffic flow was adjusted to reduce dead zones and improve circulation through the space • Shelf hierarchy was simplified so customers could scan displays faster One of the biggest mistakes retailers make is assuming more products automatically create more opportunity. In many cases, the opposite happens. When shelves become visually crowded, customers stop processing what they see. Decision fatigue increases, discovery drops, and conversion suffers. Retail performance is often determined in the first few seconds of visibility. The goal isn’t to make shelves look “full.” The goal is to make products easier to notice, understand, and buy. This is why layout strategy, planograms, and visibility mapping matter far more than most retailers realize. Small merchandising changes can completely change how a store performs — without increasing inventory spend. If your store feels crowded, inconsistent, or difficult to shop, the problem may not be your products. It may be the way customers experience them. What’s the biggest merchandising issue you see retailers struggle with today? Overcrowded shelves? Poor traffic flow? Weak product visibility? If you’re dealing with these challenges in your own store, send me a message. I’d be happy to discuss ways to improve the customer experience and merchandising strategy. — Christian DiBuono Retail Layout & Merchandising Consultant 🛒 Retail Templates & Tools: https://lnkd.in/evS2bPpP 🌐 Website: https://lnkd.in/eRA8A9mg

"If you don't distinguish yourself from the crowd, you'll just be the crowd." With fierce competition on Amazon, simply blending in won't cut it when it comes to attracting customers. So, here are 12 strategies to stand out on Amazon: 𝗨𝗻𝗶𝗾𝘂𝗲 𝗣𝗿𝗼𝗱𝘂𝗰𝘁 𝗙𝗲𝗮𝘁𝘂𝗿𝗲𝘀 Identify features that uniquely solve problems for your target audience. For example, if you're selling sunscreen to women with office jobs,  highlight its protection against blue light from computers  and how it keeps skin hydrated in dry, air-conditioned offices. 𝗦𝘂𝗽𝗲𝗿𝗶𝗼𝗿 𝗤𝘂𝗮𝗹𝗶𝘁𝘆 High-quality products ensure customer retention and boost word-of-mouth.  And we all know keeping a customer is much cheaper than acquiring a new one, especially as ad costs soar. 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝘃𝗲 𝗗𝗲𝘀𝗶𝗴𝗻 Aim for designs that enhance functionality, appeal, and comfort. 𝗘𝗰𝗼-𝗙𝗿𝗶𝗲𝗻𝗱𝗹𝘆 𝗢𝗽𝘁𝗶𝗼𝗻𝘀 Products marketed as sustainable have shown twice the growth rate of their non-eco counterparts. 𝗕𝘂𝗻𝗱𝗹𝗶𝗻𝗴 𝗣𝗿𝗼𝗱𝘂𝗰𝘁𝘀 Combine related products into bundles for added value. Also, offer discounts to enhance the bundle's appeal. 𝗖𝘂𝘀𝘁𝗼𝗺𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝗢𝗽𝘁𝗶𝗼𝗻𝘀 Allow personalization—like color choices or engravings —to resonate more with buyers. Research by McKinsey indicates companies focused on personalization achieve faster growth. 𝗔𝘁𝘁𝗿𝗮𝗰𝘁𝗶𝘃𝗲 𝗣𝗮𝗰𝗸𝗮𝗴𝗶𝗻𝗴 Eye-catching, functional packaging shows appreciation for your customers and enhances the unboxing experience. 𝗟𝗶𝗺𝗶𝘁𝗲𝗱 𝗘𝗱𝗶𝘁𝗶𝗼𝗻𝘀 Create urgency and exclusivity with limited-edition products. 𝗘𝗻𝗵𝗮𝗻𝗰𝗲𝗱 𝗙𝘂𝗻𝗰𝘁𝗶𝗼𝗻𝗮𝗹𝗶𝘁𝘆 Upgrade your product's functionality for improved performance and practical benefits. 𝗘𝘅𝗰𝗹𝘂𝘀𝗶𝘃𝗲 𝗙𝗲𝗮𝘁𝘂𝗿𝗲𝘀 Instead of mimicking market trends, innovate. For instance, if you notice a hot trend in stuffed animals, consider expanding your collection beyond the original designs. 𝗣𝗿𝗼𝗱𝘂𝗰𝘁 𝗢𝗿𝗶𝗴𝗶𝗻 Leverage the reputation of your product’s origin, like Italian leather or Swiss craftsmanship, as a unique selling point. 𝗜𝗻𝗻𝗼𝘃𝗮𝘁𝗶𝘃𝗲 𝗧𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆 The best-selling playbook for 2024? "It's AI-integrated."  Seriously though, using innovative technology can be a strong selling point. Look at how Uniqlo brands their T-shirts with cool fabric and comfort conditioning technology. The market is saturated, so differentiation is key. Before choosing a product to sell, ask yourself, "Why should customers choose you over others?" If you can answer that question confidently, you are taking the first right step on Amazon. ✅ I know your first step in building differentiation is market and competitor research (which is the right move). But how can you determine which strategies have actually succeeded? If you're not sure, DM me. I've developed ZonGuru to help Amazon sellers with data-driven strategies. And yeah, competitor research is definitely a big part of that.