I'm skeptical that stock level reporting is a factor, but it's a theoretical skepticism
Couldn't agree more.
And yes, "profitable" was a mis-speak. Revenue-generating is better.
When we started selling widgets, around 2001, they were rare, misunderstood and definitely geeky. Big margin, small sales, lots of value-add. We won customers then, customers which have stuck with us while the market exploded and the entire landscape changed. These customers have customers, who are end-users.
Now, I guarentee 98% of people on here have a widget at home, and everyone has one at work. To be fair, businesses had them before then. You usually get a flakey one free with a major class of service (almost a utility).
My point is, these are now commodity items. Total commodity. And the lines I'm talking about are NOT "buzzy". They're a bit niche, relative to the widget sector, in that the majority of sales are not to end-users (see above). These days we leave the non-niche end-user sales to the box-shifters or service providers.
5 accelerated lines come from here, or 60% of the accelerated revenue
A few years ago, a new innovation came about. It's brilliant for the home, overcoming a major obstacle to easy deployment of the widget-borne service. Latterly, some widgets had inbuilt solutions to service-deployment, but environmental factors were severely restrictive. This new technology is not environmentally limited, at least not within a single home.
We were among the first in the UK to sell this new technology, maybe 4-5 years ago. We shift volume, but it doesnt generate as much revenue- they're pretty cheap. About 15 lines of accelarated movers fall here, making 25% accelerated revenue.
The remaining 15 or so accelerated lines are a bit more scattered. We have diversified hugely in 10 years, and sell a wide range of stuff. These lines are ungrouped by type
Without gooing into the mechanics of the site, maybe 95% of the lines will be reporting either large ("+100"), stagnant, or non-varying stock levels. Of the remaining 5%, most will vary chaotically. Maybe 1% has nice, rhythmic, periodic stock cylcles. They make up getting on for 30% of our revenue.
I get lots of data passing over my desk. It is particularly these 1% of periodic shifters that are getting a boost. The correlation is statistically significant- very much so.
We're up about 50% of traffic (converttion rate and referal proportion unchanged) on less than 1% of our product offering. It would NEVER have come to my attention except that these are so important to us. On analysis of this tiny proportion of our offering, there are few universal features, few attributes that tie them together. But one theme stands out- the way stock levels vary over time.
I really cannot see the mechanism whereby stock reporting is a factor. Genuinely not. But rarely have I seen such a statistically significant event where of a population of thousands, two apparenty independant samples of 1% overlap with a frequency above 0.5. Expected frequency would be 0.01.
Sorry for the waffle. Hard to paint a picture succintly when bound by Terms.