If you're new to the world of multichannel e-commerce, the options, marketplaces, and terminology used might seem daunting and confusing. However, chances are you're not as uninformed as you think, and will only need a bit of information to help guide you along the way. If you're looking to develop a multichannel e-commerce strategy for your business, but have no idea where to start, here's a quick rundown of the rise of multichannel e-commerce, why it's important, and what you need to get started.
E-commerce as we know it began with a Sting album. On August 11th, 1994, a man named Phil Brandenberger logged into his work computer and purchased Ten Summoners' Tales by Sting for $12.48 using his credit card. It was the first ever secure online retail transaction, made possible by the advent of Secure Socket Layer (SSL) technology earlier that year.
In the 24 years since, e-commerce has developed into a multibillion-dollar industry anchored by giant marketplaces such as Amazon and eBay. Competition between these marketplaces has existed since the early days of e-commerce, and smart retail businesses have used this to their advantage—by selling on multiple sites simultaneously. Numerous retailers also operate their own online shops hosted on their websites, and many maintain offline sales presences through brick-and-mortar stores. Additionally, some sell through Facebook and other social media platforms.
From increased product visibility and broader brand awareness to reduced risk through diversification, there are a number of reasons to consider expanding your retail business into more channels. In a nutshell, more channels mean more potential customers, which means more potential sales.
But here are five more reasons you may not have considered:
Every business is unique. Your company may be best suited for one or two channels or as many as possible. Some online businesses do well selling on eBay, but find it difficult to consistently win the Buy Box on Amazon, for instance. Others, due to their particular niche, generate 80–90% of sales through their online stores, only using other marketplaces to supplement their income.
Whatever route you take, the ideal approach is to start with your business and customer base and build your strategy around your audience. Here are a few questions to ask yourself, adapted from a recent .STORE interview, featuring SellerActive's own Tom Pittman:
Take stock of your business infrastructure, and ask yourself:
Channel evaluation is critical. Before expanding into a new channel, be sure to evaluate whether that channel makes fiscal sense for your company, and whether or not it’s a good fit for your products, business and fulfillment model, and go-to-market strategy.
Think about your fulfillment model, and ask:
You don't need to build a multichannel e-commerce business alone. With the right seller software and fulfillment and management partners, you can boost your sales, increase your profits, streamline your operations, and maximize your business's chances of success in this exciting market. To see how SellerActive can help you get started, schedule a demo with us today. We also provide a free 14-day trial of SellerActive to get started.