Multichannel Selling: Choosing Between Marketplaces
Multichannel selling starts with the addition of a second channel. More and more sellers opt for this type of eCommerce business, as it enhances the chances of selling more efficiently and earning more. It is not surprising that marketplaces often become a destination for many merchants who are looking for new ways to expand businesses.
Selling on marketplaces might seem like a piece of cake. You place products, get orders, and receive your money. But the described process is possible only when a seller markets product on a carefully chosen marketplace. Regardless of what you sell, there is a marketplace for each niche.
As a Feedengine and a partner of Patagona, Sellbery has been involved in the selection of the right marketplaces in this guest article.
Multichannel Selling: Insight into the Matter
Multichannel selling can be defined as an approach to selling products when they are placed on multiple channels.
In simple words, when you are marketing them through two and more channels, you automatically become engaged in a multichannel business. The number of channels can be unlimited. Today, marketplaces are considered to be the primary choice among merchants who are thinking about going multichannel. Their popularity is justified as they have billions of monthly visitors and can generate so many orders as no other sales channel.
Here is a list of the most impressive benefits of utilizing multiple channels:
- Create more touchpoints with potential buyers
- Do not require a significant upfront investment
- Provide an opportunity to test ideas with low risks
- Help to increase brand recognition
- Surge sales
- Increase customer trust to an online seller
Multichannel eCommerce: Making the Right Choice
Choosing a marketplace for your needs is a complex process that comprises of several steps. If you follow them step-by-step, you are more likely to make the right choice that will bring along all of the upsides mentioned above.
What products do you sell?
The question is very important and should become the first step in the research of marketplaces, as the choice of sales channel depends on it. Are you selling unique or vintage products? Or maybe you offer high-competitive items like clothing or devices?
In the first case, it is better to create your online store and use a marketplace as an additional sales channel. Your primary task is establishing a brand and build brand recognition. In the second case, you need to compete with dozens or even hundreds of sellers who sell the same products. And marketplaces are the best place for the battle for potential customers.
Do you know your competitors?
You probably knew the answer to the question even before you even entered the market. Now you need to find out where they sell products. Are they selling on Amazon? Or maybe they list them on Google Shopping? Either way, you should consider your competitors as the main indication in which direction to move and where to list items.
You should also be prepared to compete with other sellers by offering the best prices and shipping options, and always remain flexible in your decisions.
Who are your customers?
Knowing your buyer persona is no less important. In-depth research of your potential customers, their interests, and preferred shopping channels provides you with an insight into where it is better to communicate with them and offer products. Sellers should understand where they make purchases, as this data can indicate which marketplaces to choose.
What is your budget?
Listing products on marketplaces implies paying different types of fees. Research the information on fees that each marketplace charges sellers with. With a very limited budget, merchants should consider this data carefully and set the product prices so that they would cover all the expenses.
Deciding Upon eCommerce Sales Channels
Up to this point, you have answered all the questions and are now ready to look deeper into the matter and analyze each marketplace.
This marketplace is one of the biggest in the world, with billions of monthly users. It is not surprising why so many sellers choose to do business there. The advantages include a wide range of product categories, relatively low fees, and other benefits like Fulfillment by amazon and its Prime program.
The marketplace gained popularity thanks to auction-based sales. Since it has moved from this business model, it became even more popular among sellers. The listed items can be sold in the auction section, or you can choose to set prices. Unlike Amazon, ebay is a great place to sell products that have been in use.
etsy is another marketplace that is listed among the most popular. It specializes in unique products that sellers manufacture or make themselves. Anyone can create a store there for free and pay fees for the placing of each listing and for each item sold.
rakuten is the world-known name on the technological market and 4th most popular marketplace in the world. As it is an open marketplace, anyone can apply to sell there. At the same time, rakuten is not the cheapest marketplace for sellers. It charges three types of fees: a monthly subscription fee of $39, a category commission of 8-15% from an item sold, and sale fees of 99 cents per each item sold.
You are probably wondering why google shopping is listed here. In your choice, you are not limited to marketplaces as multichannel selling also implies selling on other platforms, including online stores, social media, brick-and-mortar stores, etc.
google shopping is a service that allows customers to find the best prices for products they want to buy. But that is not what makes it so attractive. Since google shopping Ads generate 85.3% of all clicks on Google Ads services, the visibility of products multiplies.
If you are thinking that google shopping Ads can become your lifesaver, Sellbery will help you set up ads campaigns, control spending and other aspects of multichannel eCommerce. What is more, Sellbery is a fully-fledged eCommerce platform that offers a wide variety of features, including:
- Product feed synching
- Order and inventory management
- eCommerce analytics
- Free and unlimited product export to google shopping campaigns
The support of major integrations with top channels makes Sellbery a must-have tool for multichannel sellers who operate on amazon, walmart, ebay, etc. What makes it even better is a free plan and prices starting at 29€/month.
Final Word on Utilizing Multiple Selling Channels
Multichannel selling is recognized among sellers as an essential component of business growth strategy. The start of it should begin from the choice of the right marketplace where a great part of your operations will take place.