The success story of any e-commerce business depends on scaling your brand growth and expanding your reach. (These two key concepts may roll off a digital marketer’s tongue, but the reality requires a well-thought-out game plan). The opportunity to maximise your sales and increase your conversion rate lies squarely in the zone of increased touchpoints with your ideal customers (i.e. selling on multiple marketplaces).
If done strategically and sustainably, a multichannel approach (aka multichannel e-commerce) means you can literally be ‘everywhere.’
Ever since e-commerce has gone mainstream – mushrooming across the world – online shoppers have become more demanding; expecting a streamlined and positive online shopping experience wherever they shop. Staying in touch with what your customers want and on top of where they shop is a requirement to maintaining a competitive edge. This will involve a proactive approach: getting in the head of your customer and selling on multiple marketplaces.
Think like a customer
Selling on multiple marketplaces allows you to meet customers where they are already shopping from. Thinking like a customer will help you tailor your product listings and marketing strategies to each platform; ensuring that you’re meeting the needs of each marketplace’s audience.
If you don’t offer free shipping on your website for example, customers might prefer to shop on a marketplace where they can combine a few items they need from different brands and qualify for free shipping, or faster delivery.
By stepping into your potential customer’s shoes and showing up where they are, you will be better positioned to start achieving your e-commerce goals.
Case study: When making a purchase, a customer is likely to adopt an omnichannel approach. Let’s take a pair of shoes: if a customer wants to buy a pair of shoes online, their journey is likely to include the following:
- Doing their homework by researching the product
- Doing a price comparison across multi-marketplace platforms (Takealot, Superbalist, Bash etc.)
- Checking online reviews, delivery costs, shipping times, return policies etc. on various sales channels.
- Only then will ‘adding to cart’ be followed by a successful checkout process, on their preferred marketplace or your website.
This dynamic customer behaviour is forcing the digital transformation of e-commerce businesses and requiring them to scale their brand presence with a multichannel sales approach.
Think like a seller
“A report done by Stitch Lab shows that sellers who use two marketplaces in addition to a shopping cart make 120% more revenue, and retailers who sell on two marketplaces make approximately 190% higher revenue than sellers who only sell on one.” -Pattern.com
The proven benefits and subsequent rewards of selling on multiple marketplaces are the keys to an increased customer base and a growth acceleration trajectory.
Let’s dive into some of these benefits:
#1 Increased visibility
In a saturated online market – with a short attention opportunity – you need consumer eyes on your products to remain front of mind. This is where selling on multiple marketplaces does the job; helping brands increase their visibility as well as reach a wider audience. This will not only boost brand awareness but, if done correctly, will also lead to more sales and a credible brand image.
#2 Increased customer base
Leveraging the fact that each marketplace has its own unique customer base will immediately broaden your exposure by exposing your products/brand to a different customer base. By selling on multiple marketplaces, e-commerce brands can tap into these new audiences and maximise sales opportunities.
#3 Decreased risk
Financial investors will tell you to never put all your eggs in one basket. This diversification advice translates into an online marketplace mindset. Expanding to include a multichannel selling strategy diversifies a brand’s revenue streams, helping to mitigate the risk of relying too heavily on a single marketplace or sales channel.
#4 Increased revenue
Marketplace diversification becomes a significant opportunity to boost sales by increasing your revenue potential. This is because different marketplaces have different fees and commission structures, so brands can work smart and increase their profits by selling on multiple platforms.
#5 Increased competitive edge
Embracing competition empowers brands to be better. By evaluating and understanding how other brands are performing on different marketplaces, e-commerce businesses can identify areas where they can improve and find ways to differentiate themselves.
#6 Increased insights
As soon as you start selling your products on multiple marketplaces you will have access to more data and analytics. By monitoring sales and customer engagement across the different platforms, brands gain valuable insights into their customers’ behaviour and preferences to make data-driven decisions that will improve their businesses. This is where partnering with a specialist performance marketing agency becomes a strategic long-term move.
#7 Increased customer feedback
Access to a large pool of customers across multiple channels has the added advantage of a larger pool of (positive) reviews. These are like gold when it comes to your brand reputation; enticing new customers and ensuring ongoing consumer loyalty.
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Humans and technology interacting in a symbiotic relationship continue to impact consumer behaviour and marketing strategies. This co-evolution demands an ongoing adaptive strategy to align your vision and growth goals. Selling on multiple marketplaces is a calculated step in the right direction.
Doing thorough research on choosing the right marketplaces for your business is crucial and partnering with a digital marketing agency that specializes in growth strategies will always be a step in the right direction to achieving your goals and navigating the ever-changing landscape of e-commerce and consumer behaviour.
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