Is Your Brand at Risk? How to Escape Death by Commodification

Amazon experiences multiple brand launches each day.

Many new products appear in the marketplace, struggling to get noticed by customers.

Out of numerous product launches daily, only a minor segment remains successful.

Companies find success online by focusing all their resources on perfecting one top product for their target audience.

Several smaller product introductions in multiple lines of business achieved success better than a large initial product release plan.

Your business's future depends on dismissing acceptable concepts to commit yourself to remarkable opportunities.

The most powerful brands identify one clear purpose to serve their target clientele with an experience that no other brand can match.

Through this article you will learn why e-commerce brands that focus ruthlessly perform better in the long run while discovering ways to grow profits.

The Myth of "More Is Better" in E-Commerce

E-commerce companies have long assumed that creating new products will accelerate business expansion.

The reasoning seems logical:

Having more items available yields additional opportunities for sales growth.

More SKUs = greater market share.

More choices = broader customer appeal.

As the market evolves, this business strategy has proven to be ineffective.

Additional products make inventory control difficult and weaken product identity because there are more items to handle.

When a brand markets too many items, it cancels its ability to stand out in a specific arena.

In the late 1990s, Apple successfully transformed its business model.

After Steve Jobs returned to lead the company, the fledgling Apple faced numerous product lines, all vying for financial backing.

Jobs reduced Apple's product lines from 70 to only seven platforms by selecting its most ground-breaking and fundamental offerings.

The result? Apple transformed from an unprofitable organization into one of the most powerful global brands ever.

E-commerce uses this same approach to succeed.

Brands that select one outstanding product tend to expand faster while gaining devoted customers and achieving better profits.

Why Focus Wins in E-Commerce

Competition Is Stronger Than Ever

Entering the online retail sector has become simpler than ever before.

Business owners can start their brands through Amazon, Shopify, and TikTok Shop platforms in just a few minutes instead of multiple months (1).

Daily market entry by new sellers becomes possible because of easy online access.

You now confront competition from manufacturers, startups, and corporate leaders worldwide.

To stand out, brands must:

• Specialize in making one top-quality product rather than selling many options.

• Businesses must build detailed profiles of their best clients rather than selling to everyone.

• Create an exceptional service standard that makes them different from other business rivals.

Too Many Choices Kill Sales

Consumers are overwhelmed by options.

A Columbia University research showed sales dropped to 3% when customers had 24 jam flavor choices (2).

The shopping rate elevated from 3% to 30% as the choice options shifted from 24 to 6 flavors.

Why? More product choices slow down the buying process.

Choosing from too many options leaves customers uncertain, and they end up abandoning their purchase decisions.

This principle also applies to internet retail brands.

A limited product assortment makes marketing easier and helps users select faster.

Profit Margins Are in Premium, Not Commodities

When business rivals threaten each other more heavily, mid-priced goods struggle to stay in the market.

Brands must either:

• The company must reduce its prices and operate as a basic price retailer in an effort to beat competitors through lower costs.

• The company must set higher prices to create a premium brand image while earning greater profits.

Does increasing prices make more business sense than reducing costs?

Luxury brands dominate because:

Higher prices = higher profit margins (3).

Customers see these products as being of higher worth.

They generate devoted customers who purchase from them multiple times.

Tesla, Apple, and Dyson opt to avoid price competition as their core business practice.

They make top-quality items that maintain devoted customer connections.

Online stores gain high margins by selecting premium positioning without battling price wars.

How to Apply Ruthless Focus to Your E-Commerce Brand

Say No to Most Product Ideas

Most online brands fail because they approve all new product suggestions.

Stick to making one outstanding product.

Before launching anything new, ask: Is this product truly unique?

The product addresses a significant challenge that my target customers experience.

Can I promote my product successfully with no additional products?

Proceed with other projects when the answer does not meet all requirements.

Identify Your Best Customer Avatar

Aiming to please every customer group will lead to failure.

Devote all your efforts to serving your one specific customer type (4).

Define their: Age, gender, and income.

Biggest problems and desires.

This includes their buying locations and their specific way of thinking.

After you find the perfect customer profile, all parts of your marketing will become stronger and work better.

Optimize for Premium Positioning

Challenging other companies with low prices never succeeds as a merchandising strategy.

Your offering should stand above all other products on the market.

How?

• Put your business money into branded materials with top-quality design elements.

• Develop a brand narrative to show customers why your product stands apart from other options.

• Provide superior service that turns clients into dedicated brand supporters.

Customers understand the excess costs behind luxury brands due to the exceptional emotional benefits they receive.

You need to follow this principle with your online store.

Cut What's Not Working

Already have too many SKUs?

Trim all underperforming product options from your range (5).

Look at:

• Focus on selling more of your top successful products.

• Slow-moving products (consider discontinuing).

• Eliminate low-profit items from your product line.

A trimmed-down product selection allows you to control your operations and boost profitability.

Final Thoughts

Businesses that offer hundreds of products without strong sales performance must adapt to survive today.

Businesses that market a reduced yet refined item range will experience greater marketplace success.

So ask yourself:

Does my brand move closer toward common goods?

May I create premium goods with distinct value or keep working on various products?

Selecting a focused market position helps your brand grow into future leadership while creating ongoing profits.

The choice is yours.

✅ Death by commodification is real. Avoid the trap and grow with confidence. ✅

FAQs

What does "death by commodification" mean in e-commerce?

Death by commodification happens when brands lose uniqueness, compete only on price, and struggle to maintain profit margins, making long-term survival difficult.

Why is having too many products bad for e-commerce brands? 

Too many products dilute branding, confuse customers, increase inventory complexity, and lower sales conversions due to decision paralysis.

How can e-commerce brands avoid competing on price?

Brands should establish premium positioning alongside enhanced quality products and develop strong branding while delivering excellent customer interactions to evade price wars.

What is the benefit of focusing on one great product?

A single, well-positioned product allows for stronger branding, better marketing, higher conversion rates, and long-term profitability.

How do successful brands like Apple and Tesla maintain focus?

They limit their product lines, refine their core offerings, and ensure each product aligns with their premium brand identity and customer expectations.

Related Studies

1. Title: The Impact of E-commerce Competition on New Product Entry in the Manufacturing Sector
This study examines how e-commerce competition affects new product entry in manufacturing, highlighting the need for technological capabilities to survive in a competitive market.
Link: https://www.eria.org/research/the-impact-of-e-commerce-competition-on-new-product-entry-in-the-manufacturing-sector--evidence-from-the-republic-of-korea-s-manufacturing-establishments

2. Title: Columbia University Study on Choice Overload

This study demonstrated that offering fewer product options can significantly increase sales conversions, as shown by a candy shop experiment where a store with fewer options had higher sales.
Link: https://www.growcode.com/blog/too-many-options-bad-for-conversions/

3. Title: Luxury Unfiltered: The True Cost of Cutting Luxury Prices
This article discusses how luxury pricing strategies impact brand loyalty and profitability, emphasizing the importance of maintaining price consistency to preserve brand equity.
Link: https://www.luxurydaily.com/luxury-unfiltered-the-true-cost-of-cutting-luxury-prices/

4. Title: SKU Rationalization: Drive Operational Efficiency within Your Business
This resource highlights how reducing product SKUs can improve profitability by focusing on high-performing products and reducing inventory costs.
Link: https://www.warehousequote.com/resources/sku-rationalization/

5. Title: 23 Benefits of a Niche Marketing Strategy
This study outlines the advantages of niche marketing, including increased engagement, standing out from competitors, and cultivating innovation.
Link: https://www.rostoneopex.com/blog/23-advantages-of-adopting-a-niche-marketing-strategy