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Westwing Achieves Significant Profit Uplift on Subset of Assortment with 7Learnings

Learn how Westwing, Europe’s #1 in Beautiful Living e-commerce, used tailored price optimizations provided by 7Learnings to steer toward their goal of profit maximization.
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Company Overview

Westwing is a leading premium e-commerce retailer in the home & living sector, offering a unique brand experience with a carefully curated assortment of the Westwing Collection and 3rd party design brands. The integrated platform combines Shop, Club-Sales, (offline) Stores, the B2B Service (Westwing Business) and Westwing Design Service. Founded in Germany in 2011, the company is now active in 12 European countries and processed 2.9 million orders in 2023.

With an expansive and rapidly changing assortment of products, Westwing needed a pricing solution that would allow it to tailor prices for different regions and sales channels. The ultimate goal has been to maximise profitability and boost competitiveness in a highly dynamic market.

Westwing, Europe's #1 in Beautiful Living e-commerce, is implementing predictive pricing

Challenges

  1. The market Westwing operates in is highly competitive, and any mistakes in pricing can lead to a loss of market share to competitors. The company needed to find the exact price points at which they could maximize their profits without compromising their share of the market.
  2. Westwing has a large and frequently changing assortment of goods, and optimal price setting hinges on a number of factors, such as competitor prices, customer price sensitivity, seasonality, and more. Finding the prices for each product requires an extensive analysis of available data points.
  3. Many of Westwing’s products come in various colors and sizes, and it is difficult to maintain consistent pricing across these variables. The task of consistent pricing is also laborious when done manually, requiring considerable man hours.

Solution

  • 7Learnings conducted an A/B test on a subset of Westwing’s assortment. Westwing set the specific target of maximizing profit and steered its pricing strategy towards this goal using the 7Learnings price optimization feature.
  • Our pricing solution allowed Westwing to simulate various pricing scenarios driven by machine-learning-based predictions.
  • Westwing was able to set up master products in the 7Learnings solution through which prices for product variants could be set consistently.
  • 7Learnings enabled Westwing to update many prices at once in a quicker and more efficient manner.

7Learnings helped achieve:

Greatly

increased profit

Halved

operational time

Conclusion

Westwing, Europe’s #1 in Beautiful Living e-commerce,successfully addressed the challenges of a highly competitive market and a diverse product assortment by implementing 7Learnings’ predictive pricing solution. Leveraging our machine learning-driven predictions, Westwing achieved a significant increase in profits on the assortment defined in the A/B test. The tailored price optimizations provided by 7Learnings allowed Westwing to successfully adapt their pricing for regional variations, sales channels, and product attributes, ultimately maximising profitability.

Thanks to 7Learnings, we are finally on track for data-driven price automation and optimization!
Dr. Yola Engler
Director Pricing and Profit Management, Westwing

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