Article Contributed by Ifan Kaldain
Image by epSos
Multichannel retail is all the rage these days. It seems that even the smallest ventures are now selling on multiple channels across the globe. While there are many benefits, there are also challenges; the most salient being the managing of your sales channels – ensuring that they work in unison for effective e-commerce. In this article, we will explore the ways in which you can balance your business so that it can become global without losing one’s attention to detail.
- Amazon Vs eBay
While it’s tempting to simply set up a presence on every popular 3rd party marketplace, it’s important to consider if your business can afford the time, effort and risks involved. It’s important to assess the type of customers and competitors on each platform, to assess where demand and market average price of your products. Perhaps your products can sell on Amazon, but only if you slash the prices; perhaps those who browse eBay are not interested in your stock at all. The best method of determining feasibility for each marketplace is to investigate your competitors. Variables to consider include:
- Which platforms they are selling on?
- If they sell on multiple platforms, are they only selling specific types of products on each platform?
- Are their prices different from the prices offered on their website?
- Are they offering product bundles?
Taking note of the above can help you decide whether customers will likely buy your products via a 3rd party marketplace. It can also help you decide whether you can compete with the other sellers.
- Order Process Consolidation
Using a multichannel retail management system can allow you to view and manage orders across all your sales channels – such as Amazon, eBay, your website and physical store(s). This can not only cut down on admin time, but can provide you with valuable customer data that will help you understand current and future shopping trends.
Perhaps your cheaper goods sell better on your Amazon page, whereas customer seeking your high-end goods prefer to purchase on your website, where they can get more help and information. Such data can help you understand which channels work best for each type of customer, allowing you to further tailor your customer service strategy.
- Connecting Offline & Online
You may be selling online, but that doesn’t mean that you have to ignore your offline operation – if anything, you can connect the two together. For example, setting up a click-and-collect service, in which customers can buy online and then pick up later from your nearest store, is a convenient method for customers who have full time jobs. Another service you can provide is the ability to return defective or unwanted products bought online at a physical store. The little things can really make a big difference for your local customers, and makes them feel that they are still valued in the face of your online expansion.
More tips for balancing your sales channels can be found in this handy guide to multichannel retail, which also includes a breakdown of the differences between Amazon and eBay.