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Will Reducing Your Product Range Increase Purchases?

Explore what choice overload research says about smaller assortments, clearer comparisons, and testing purchase rates alongside revenue and profit.

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Product count alone does not determine purchasing outcomes

When customers say there are too many products to choose from, a sales manager has two possible responses. Reduce the range, or add information that helps customers judge the differences. The reason for their hesitation determines which change deserves a trial.

Choice overload describes outcomes such as postponing a decision or feeling less satisfied when more options are available. Research finds that the effects vary across experiments, with factors such as comparison complexity helping explain the differences. Consider the range and the information needed to compare it together. (2010 choice overload meta-analysis, 2015 meta-analysis)

Before removing products, investigate whether customers cannot find a suitable item or cannot judge the differences between suitable items. This article uses the research to develop practical changes to test on your own product pages.

What did the two meta-analyses find?

A meta-analysis statistically combines results from multiple experiments. Scheibehenne and colleagues' 2010 paper covered 63 comparisons from 50 published and unpublished experiments involving 5,036 participants. The average effect of increasing choice was close to zero, with substantial variation between experiments. That average cannot establish that assortment size has no effect in every store. (2010 meta-analysis)

Chernev and colleagues' 2015 paper analyzed 99 observations from 53 studies involving 7,202 participants. Four factors moderated choice overload: the complexity of the assortment, the difficulty of the decision task, uncertainty about preferences, and a goal of minimizing decision effort. (2015 meta-analysis)

The papers used different study collections and analytical approaches. Their difference does not measure a change in consumer behavior between 2010 and 2015. Both combine experimental settings rather than measuring the actual purchase rate of Japanese online stores.

For a business, the useful implication is to investigate the source of decision effort before adopting a smaller range. Neither paper establishes a universally optimal product count.

Match the source of hesitation to a specific change

Identifying what customers cannot compare gives you changes to consider alongside removing products. The following proposals draw on the four factors in the research. Their effects require testing in your own business.

Where customers get stuckChange to test
Product descriptions use different attributes, preventing performance comparisonsAdd a comparison table using the same attributes and units
Finding an affordable item requires opening every product pageShow prices and additional charges in the listing
Customers do not know which specifications their use requiresExplain the relationship between uses and required specifications
Choosing a product becomes entangled with browsing the entire catalogOffer entry points by use while keeping a link to the complete catalog

For example, a printing service might describe paper thickness differently for each stock. Showing thickness in one unit and explaining the resulting finish would allow a direct comparison. This trial changes how existing products can be compared before deciding which ones to retain.

When considering the removal of products with overlapping specifications and uses, investigate what their existing buyers could purchase instead. Differences in color, size, or device compatibility can matter to particular buyers. Low sales alone can conceal a specification that some customers require.

Distinguish changing the display from removing products

Featuring fewer items in a listing and discontinuing them change the available range in different ways. Record how many products are displayed and how many remain available as separate decisions.

A trial that introduces entry points by use can retain the complete catalog. Check whether visitors can reach the specifications they need. If reports of missing products increase, revise the categories or link labels.

A discontinuation trial requires reviewing purchase histories and the uses mentioned in inquiries, then checking which requirements alternatives can fulfill. Products serving uses without a suitable replacement represent demand that a reduction could lose.

Simplifying a listing while simultaneously discontinuing products combines the effects of lower comparison effort and a reduced range. Define whether the trial is evaluating presentation or assortment reduction.

A higher purchase rate can accompany lower revenue

Evaluate order value and profit alongside the proportion of visitors who purchase. In the hypothetical example below, purchase rate means the share of people visiting the comparison page who make at least one purchase within a predefined observation window. Return visits and multiple orders do not add extra people to either count.

Calculation example with hypothetical figures

MetricCurrent displayRevised display
People visiting the comparison page1,0001,000
Buyers4050
Purchase rate4%5%
Total revenue¥400,000¥350,000
Revenue less product costs¥160,000¥140,000

Purchase rate rises by one percentage point, while revenue and revenue less product costs fall. These figures exclude expenses such as order-related shipping. Include those costs when assessing the business result. Adopting the change based solely on purchase rate would overlook the decline in profit.

The table alone also leaves the cause unresolved. One proposed test would randomly assign visitors during the same period to the current or revised display, keeping each person's assigned version consistent. Define the metrics, purchase observation window, required sample size, and end date in advance, and assess random variation. A comparison of different dates also captures changes in advertising and seasonality.

Begin with the information customers need to compare

A decision to reduce the range requires examining both missing comparison information and the uses a reduction would remove. Use consistent descriptive attributes across your product pages, and decide whether to change the number featured or the number sold. Judge continuation using purchase rate, revenue, and the amount remaining after relevant costs.

Publish the uses, prices, and specifications that explain how to choose your products or services. Recording when and how a comparison table changed also makes the next trial traceable.

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Frequently asked questions

Q: Will showing three options increase purchases?

A: The research discussed here establishes no universal optimal count. Preserve specifications your customers need, and define a trial that distinguishes changes to assortment size from changes to comparison information.

Q: Can I ignore choice overload because the average effect was close to zero?

A: The 2010 analysis also reported variation between experiments. Investigate where comparisons stall in your own range and which explanations are missing, then choose the specific element to change.

Q: What can I improve without changing the product count?

A: Consider a comparison table with consistent attributes and units, visible listing prices, and explanations connecting uses to required specifications. Record the information added and evaluate changes in purchases and inquiries.

Q: Can purchase rate rise while revenue falls?

A: Yes. More buyers can still produce less revenue if order values or the mix of products purchased changes. Calculate revenue, product costs, and order-related expenses when deciding whether to continue the change.

Sources

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