Key value items or KVIs, are products that play a critical role in the sales and profitability of a retail or e-commerce business. These items are often heavily promoted, and prices for KVIs are carefully monitored by both the retailer and the manufacturer to ensure that they remain competitive and attractive to consumers.

In the world of retail, KVIs are often seen as the “bread and butter” of a store’s offerings. They may be the most popular items sold in the store, or they may be products that are essential for the store to remain competitive in the market. Retailers will often work closely with manufacturers to set prices for KVIs that are both profitable for the retailer and attractive to consumers.

In e-commerce, KVIs can take on a different form. E-commerce retailers may focus on a smaller selection of products, but they must still ensure that these products are competitively priced and in high demand. To achieve this, e-commerce retailers must carefully monitor market trends and consumer behavior, and make adjustments to their pricing strategy as needed.

Regardless of the form that KVIs take, the importance of these items to the overall success of a retail or e-commerce business cannot be overstated. By carefully monitoring prices and staying competitive in the market, retailers and e-commerce businesses can ensure that they remain profitable and appealing to consumers.

In ecommerce and retail businesses, key value items can impact pricing in the following ways

1. Profit margin: KVI often have higher profit margins than other products, which allows businesses to price them higher while still remaining competitive.

2. Competitive pricing: KVI are often used to establish a competitive price point for similar products in the market.

3. Volume sales: KVI generate high volume sales and can be used to drive overall sales for a business.

4. Brand recognition: KVI can help to build brand recognition by drawing attention to a particular product or product line.

5. Discounting strategy: Discounts and promotions on KVI can drive footfall and sales of other products in the store.