Multi-channel ecommerce used to be a one-way street. Online marketplaces like eBay and Amazon provided the starting blocks for many small business owners to take their first steps online.
By Brendan Doherty, CEO, SellerExpress
Often from very humble beginnings, many of these independent and entrepreneurial retailers built their brand across multiple channels, optimising their listing strategies according to the various nuances of each platform and found their profits wherever they could.
For many of these small retailers, the goal was to build a significant marketplace business before striking out with their own website where they would own their own customer data and take a larger percentage of the profits.
The traffic rarely went the other way, with most large name retailers turning a blind eye to the opportunity afforded to them via online marketplaces. Some felt that the cut-price environment offered by the likes of eBay would be damaging to their brand, others felt sharing data with a potential competitor like Amazon was too dangerous.
But for many, it was just too difficult to manage their sales across a hotchpotch of platforms that didn’t quite fit in with their existing retail systems. It is ironic that the online trading experience enjoyed by so many first time retailers is also the most demanding in terms of managing stock levels, pricing and customer expectations.
But then everything changed.
The perfect economic storm that has battered our high streets in recent years has led many large retailers to reconsider their options. In today’s environment, a customer is a customer, no matter where they chose to shop online.
Both eBay and Amazon have made significant investments to make their websites more attractive to big name retailers, while software companies like SellerExpress have made it easier for retailers of all shapes and sizes to manage and optimise their sales across multiple platforms.
While many small business owners are nervous about larger retailers invading their space online, we believe the mix of independent and brand name sellers should ultimately increase trust in the marketplace experience and drive sales for both.
Of course, increased competition means retailers will have to work harder and focus on creating efficiencies. It’s then a case of each retailer playing to their strengths.
A large retailer might have the buying power to guarantee premium stock and win favourable terms from suppliers but a smaller retailer will almost certainly have greater agility, allowing them to make decisions about product lines, where they hold stock and the general direction of their business than their high street counterparts.
The online marketplace experience is becoming more sophisticated and it’s an opportunity that no retailer can afford to miss out on. The likes of eBay and Amazon are no longer venues to supplement income or shift distressed industry. They are valuable routes to market, increasingly important brand creation tools and, let’s not forget, significant drivers of revenue.
No matter how large or small you business, isn’t it time you took a better look at online marketplaces?
Brendan Doherty is the CEO at SellerExpress.com – an online solution (SaaS) for managing every step of the online marketplace sales cycle.
For a free trial of SellerExpress visit: http://www.SellerExpress.com
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