This feature promises convenience by alerting customers the moment a product is restocked. However, what happens when a product will never come back? This introduces the issue of orphan products, which not only frustrate customers but can also lead to lost sales opportunities for businesses.

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What Are Orphan Products?

Orphan products are items in an online store that, despite having the "Notify Me" option, will never come back in stock. The store owners have either discontinued these products or do not plan to restock them, leaving customers unknowingly waiting for a product that may never return.

Orphan Products and Revenue Loss: A Category Breakdown

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The first chart provides insight into the prevalence of orphan products and the corresponding revenue loss across different industries. It highlights a critical issue for e-commerce businesses: the financial impact of products that are no longer restocked but continue to attract "Notify Me" alerts from customers.

• The highest orphan product rate is seen in Business & Industrial at 19.1%, which also causes a significant 10% revenue loss. This reflects the challenges in managing inventory in this sector, where product discontinuation is common but customer demand persists.
• Vehicles & Parts and Apparel & Accessories follow with orphan rates of 13.1% and 12.9%, respectively. These sectors also experience high revenue losses—11% and 9%—due to orphaned items, emphasizing how discontinuing popular products can quickly affect the bottom line.
• Another standout is Animals & Pet Supplies, where although the orphan rate is moderate at 7.4%, the revenue loss is disproportionately high at 12%. This suggests that even a smaller number of discontinued items in this category can lead to substantial financial setbacks.
• On the other end, Software stands out for having a relatively high orphan rate of 10.2%, but only a 1% revenue loss, showing that not all orphaned products result in significant financial damage. This might be due to the digital nature of software, where alternatives are more readily available.

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Distribution of Orphan Products Across Industries

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The second chart focuses on the distribution of orphan products across various industries, revealing where orphaned items are most concentrated.In other words, it  shows the percentage share of all orphan products by industry, reflecting which sectors have the largest portion of total orphan products overall.

• Apparel & Accessories lead the chart, accounting for 10.5% of all orphan products. This isn’t surprising given the fast-moving nature of fashion, where seasonal shifts and trends quickly render products obsolete.
• Vehicles & Parts and Business & Industrial are close behind, with 9.3% and 9.1% of orphan products, respectively. These industries deal with highly specialized products, and discontinued items in these categories leave significant gaps in inventory without easy replacements.
• Office Supplies (7%) and Furniture (7.8%) also represent a considerable share of orphan products. These categories often involve items that become outdated due to changing technology or design trends, leading to higher rates of product discontinuation.
• Arts & Entertainment and Animals & Pet Supplies each contribute about 5-6% to the total orphan product pool. Though these sectors don’t dominate in terms of orphan rates, their combined percentage indicates a non-negligible impact.
• Other categories like Electronics, Health & Beauty, and Cameras & Optics have relatively lower shares, hovering around 2-4%. However, these smaller percentages can still represent lost opportunities, particularly in high-demand or high-ticket categories like electronics.

Addressing the Orphan Product Problem: Introducing Variant Transfer

To tackle the issue of orphan products, we offer a solution called "Variant Transfer." When a product becomes an orphan—meaning it will not be restocked—our system allows shop owners to reach out to customers who requested notifications for these items via personalized email or SMS.

Instead of simply leaving customers waiting for something that may never return, shop owners can offer alternative products from their inventory. Here's how it works:

• Email Example:
  Subject: {{product_name}} is available now!
  "Due to high demand for {{original_product_name}}, we are unfortunately unable to restock your requested item. However, we suggest you purchase the new product in our collection, {{product_name}}."
• SMS Example:
  "We regret that we cannot restock the {{original_product_name}} due to high demand. Consider buying our latest product, {{product_name}}."

This approach not only helps manage customer expectations but also redirects them to similar products that may fulfill their needs. The impact has been significant: our shop owners have generated $351,000 in additional sales through this system. Of this total, $191,000 comes directly from the purchase of the alternative products suggested to customers. The remaining amount comes from additional purchases made by customers after being directed to the shop for the alternative product.

By addressing orphan products in this proactive way, businesses can recover potential lost revenue and continue to engage customers even when specific items are no longer available.

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