Tag: multiple sales channels

Should I Sell On Multiple Sales Channels?

Should I Sell On Multiple Sales Channels?

So, you own a retail business and you sell online.  You have your own website and sell all of your products there for all to see.  You’ve spent many hours making sure people know your site and what you sell.  You’ve also spent a few dollars, perhaps, many dollars advertising your site online with Google AdWords, Yahoo Advertising, Bing Ads, and the list goes on.  What you really want is to sell exclusively at your site.  However, with all of the hard work that you’ve put in and the dollars spent advertising, you aren’t seeing the results you thought existed.  After all, you had complete faith in the famous line from the classic movie Field of Dreams, “If you build it, they will come”.  Well, the internet is full of online sites and stores just like yours.  The competition is fierce.  How do you get noticed?  How do you stand out from the rest? Well, you can use the aforementioned advertising examples such as Google AdWords, Yahoo, etc., but, you’ll need to be very careful on how you spend your advertising dollars.  Pay-per-click advertising is costly and could cost a lot of money if not handled correctly.  After all, you want a return on your investment (ROI), don’t you?  If you spend $10 in advertising, you expect to make your $10 back and then some.  It doesn’t always work that way.  Most of the time, retailers will find themselves spending a lot more money on ads than what they are receiving in profit.  This will put you in bankruptcy very quickly, which is, obviously, not part of your plan.

One key strategy you’ll need to focus on is branding.  You’ll need to brand yourself in a way that will get you noticed.  Branding yourself is a way to get ahead of the competition.  You’ll need to get in front of your audience with a solid brand that people can trust.  A brand that is not just in one place.  You’ll need a brand that people believe is strong and has something very good going on.   A brand that is seen many different times in the marketplace.  How do we do this?  Selling on multiple sales channels.  You may be thinking, what, why, how?  Selling on multiple sales channels has many benefits.  Keeping your inventory fresh is a great plus and by selling on multiple sales channels, you will be able to turn inventory much quicker than if you were selling on only one channel.  Need another very good reason?  Cash flow.  Cash flow is one of the most important aspects to any business.  Money comes in, money goes out.  If money isn’t coming in regularly, you are definitely going to run into problems.  In most businesses, as fast as money comes in, money goes out.  Having solid cash flow in your business will help keep your business flowing regularly like a solid business should.  Some retailers don’t like the idea of most Sales Channels taking a fee when any item is sold.  No one likes fees, however, isn’t a sale better than no sale?  Again, cash flow and keeping your inventory fresh is the key.  Buyers will return more often if your inventory keeps changing.  Let’s do some quick math to show you how powerful selling on multiple sales channels can be.  Let’s say your site sells $10,000 worth of merchandise every month.  If you open up your inventory to other sales channels such as Ebay, Amazon, Etsy, etc., and you sell $5,000 on Ebay, $2,000 on Amazon, you’re combined sales are now $17,000.  Would you rather sell $10,000 for the month or $17,000?  If you’re like me, you’re going for the $17,000.

You may ask yourself, but, if I’m selling on Ebay or Amazon, I’m helping their brand, not mine.  Not exactly true!  Selling on Ebay or Amazon can strengthen your brand.  Millions of shopper are on Ebay and millions of shoppers are on Amazon.  You can include your store logo on either sales channel and get that logo in front of millions of shoppers, shoppers that are interested in your products.  That’s advertising for you that you can afford!

If you haven’t noticed already, plenty of large retail brands are selling their products on multiple sales channels.  They are completely aware of branding, cash flow, and keeping inventory fresh.  Selling on multiple sales channels is a definite must if you are playing in the retail industry.  You’ll thank me later!