Buying decision starts with product research. Customers are checking prices, looking up alternatives, and comparing shipping terms.They usually do not visit an online store. Almost in 48% of all cases marketplaces like Amazon, eBay, Etsy become their primary destination. As these eCommerce platforms have millions of product listings, shoppers can easily find the best offers without navigating different websites.
The importance of being present on multiple sales channels is utmost. eCommerce business owner should really consider adding more channels as they allow to grow business without extra investments and boost revenue.
Introduction to Multichannel Selling
Let’s start with the definition of multichannel eCommerce. It is a practice of offering products through a few channels. If you own a WooCommerce online store, placing products on a marketplace will also help you improve brand recognition and visibility. These benefits spiral into the increase in revenue.
Research by Stitch Labs concluded that the revenue of multichannel merchants who utilize two marketplaces is 190% more than the income of those selling on a single platform.
Multichannel eCommerce increases customer retention by 91%. Customers want to buy on the platform of their choosing, and when a business is multichannel it provides them with such an opportunity.
That said, listing on multiple sales channels comes along with many more benefits as well as some challenges. But the latter can be solved with a multichannel listing platform. We will talk about it later on.
Why You Should Consider Multichannel eCommerce
No doubt that selling on multiple marketplaces and platforms is beneficial for your business. Among the promised advantages, you can find increased revenue and improved brand recognition. Take a closer look at them to understand better why so many sellers rely on multichannel strategy.
When you sell on a single channel, you can only sell products to the small fraction of all shoppers. With each new channel added, you broaden the possibilities of reaching more potential customers. More than 20 million shoppers visit Amazon every month and when we add eBay, Etsy, Walmart, and other popular marketplaces this number multiplies. By listing products there, you place them in front of all these buyers who are eager to make a purchase.
Increase in sales
How many sales can generate a single online store? Probably a lot less than a marketplace, especially if we talk about a newly established store. Besides, customers who make purchases on multiple sales channels usually spend 15%-30% more than buyers who purchase from a single channel. It explains why many eCommerce businesses go multichannel.
Better brand recognition
The most famous brands are a great example of how eCommerce multichannel should be addressed. When you look at them, you can easily see that they operate almost on any channel available. It is a wise decision to follow suit as with new channels your brand becomes more visible and customers start to recognize it.
There is a saying to sell where your customers shop. However, there is a better solution – sell on the channels where your competitors operate. Look at them and you will instantly know which channels are worth your attention. At the same time, it does not mean that you should not explore marketplaces where your competing stores are not present yet as they might not have the resources which are needed to be present everywhere.
Building a store with an eCommerce platform like WooCommerce or Shopify will cost you time and money. That is why marketplaces have become a place of testing ideas with low risks. They do not require upfront investment and provide an easy way of bringing a new store to the market.
Even more, you can quickly test how your product would sell in Asia or Latin America with such marketplaces like Lazada and MercadoLibre. By listing the most popular items there, you can see they will resonate with the local customers and decide whether to plan a further expansion or stop selling.
There is no doubt that multichannel eCommerce is booming and will continue molding the scene of online selling even further. If it seems like something you would try, the next section of the article will explain how to prosper in multichannel selling.
How to Start Multichannel Selling and Create a Successful Multichannel Strategy
Selles often ask how to become successful in multichannel eCommerce. It is not enough to place products on a few marketplaces and wait for a miracle increase in revenue to happen. As soon as you decide to start selling items through different channels, your journey just starts as your future success depends on the choice of the right strategy. The following tips will help you decide on the best course of action.
Choose a sales channel
If you already sell in your WooCommerce store, it makes sense adding marketplaces to the equation. In case you already utilize a marketplace, you should consider opening an online store as it will help you perform better and will improve customer trust to your store.
But how to make the right choice?
As you do not want to spread your efforts thin, you should make initial research, the results of which will help you decide on marketplaces to add to your strategy. Do not try to be present everywhere at first. Look at places where your competitors are and where your target audience is. Study their preferences and decide based on real data. Prioritize the channels and develop a strategy for each of them.
Put Emphasis on Customer Experience
Your customers are your cornerstone. It would be best if you put them first, always anticipate their needs, and provide the best customer experience. Shoppers tend to buy from sellers who can offer high-quality products, best prices, and who seem to care about them. If you manage to make customers feel important, they will be less likely to switch to another merchant or store.
Prepare to scale
With the addition of new sales channels, you will face the problem of rapid growth. This is the main problem for many sellers as they are not always ready to scale operations and bring them to the next level. You will have to spend more time managing order fulfillment and inventory, providing customer service, and looking for products to sell.
Multichannel eCommerce may require you to scale in terms of human resources and technology.
Being present on multiple sales channels, managing orders and inventory may take a toll on your time and business. Fortunately, thanks to innovative solutions, a significant part of the tasks can be automated.
Instead of adding listings to each and every channel manually (ut can take months), you can utilize a multichannel listing platform like Sellbery. A repricing software will help you automatically set competitive prices. There are many tools that can be used to streamline operations across channels.
Get Ready to Branch Out
Are you ready to start multichannel selling?
In case you have not already opened your stores on the top marketplace, it is time to make the first steps in the direction that will lead you to growth in sales and revenue. Even though multichannel selling can seem like a daunting challenge, it is worth the time and effort you are about to invest in the business expansion.