Shoppers have more options that ever before, and that means you have to be where they are.
For many sellers, the online competitive landscape is changing rapidly, and not for the better. There seems to be increasingly more rules and more competition, making it feel like it's impossible to get in front of shoppers. With COVID (yes, we know, everyone is tired of hearing about it), shoppers moved online in droves. Believe it or not, 2020 and the beginning of 2021 were stellar for well prepared businesses. But as 2021 progressed, business took a turn, and for many, it was not good. Supply problems disrupted millions of businesses, forcing many to shut their doors, permanently. Amazon implemented search changes that impacted sellers of certain products, basically making them invisible. And finally, the eCommerce to in-store shopping ratio has returned to pre-pandemic levels.
But it's not all doom and gloom for online businesses. Even pre-pandemic online shopping was huge, 13% of all retail sales were done online, totaling nearly $1 trillion. It's obvious then being online is a must, but leaves the question of how do you stand out in the crowd. One way is by making your products available across multiple Marketplaces, from Amazon to Wal-Mart, and eBay to NewEgg, the opportunities to get in front of customers are huge! Even the U.S. Chamber of Commerce recommends multiple sales channels.
Why should you sell on multiple Marketplaces?
There are so many reasons why selling on multiple marketplaces makes sense.
Avoid total loss of revenue
Many businesses are Amazon-only, yet Amazon is notoriously strict on it's staggering amount of policies. Worst of all, Amazon routinely suspends accounts for reasons that are not always clear and offers little help from their seller support team. It can sometimes take months to get a product or account reinstated (read a few horror stories of suspended accounts here and here). Can you business survive a few months with no revenue? Even if it can, it would still disrupt your business and make for a tough year.
By making products available across multiple Marketplaces, a business protects its revenue. The saying "Don't put all your eggs in one basket" applies here. By having your products (eggs) in multiple Marketplaces (baskets), you can still make sales, even if one of the baskets has some issues.
Increase exposure
The next time you are in the grocery store, look straight ahead. Those products at eye level and in easy reach, they paid to be there. Why? Exposure. The brand is seen more often, it is easier to interact with, and it is easier to place it in your cart. The same is true online. This may sound strange, but many shoppers do research on one website (like Amazon) but make their purchase somewhere else (like Wal-Mart). This happens for a variety of reasons. Some don't want an account with multiple stores. Some might be comparing prices on different markets. Whatever the reason, if your product is available wherever they want to buy, customers will feel more comfortable if they have seen your product in multiple places. This is brand recognition at its simplest.
At the same time, not everyone uses Amazon. Some shoppers only use a non-Amazon platform. A large portion of our eBay sales are shipped to Puerto Rico, yet other platforms have nearly zero PR sales. Are you leaving over 3,000,000 customers with no opportunity to purchase your product?
Niche Specific
While Amazon is great for most sellers, and a fine starting point, some products may have the benefit of a specific site.
Electronics sellers should check out New Egg, with 37 million shoppers and an average order value over $400.
Sellers of adult products may find success on eBay after Amazon made it difficult to succeed.
If you hand-make products (or sell products that look handmade), Etsy is simple to set up and popular among the maker crowd.
This article is from another leader in the Marketplace industry. They agreed with us that a multi-Marketplace approach is a top strategy.
Are there any down sides?
There are a few considerations when making the move to a multi-Marketplace setup. With careful planning, you can easily overcome these roadblocks and build a successful Marketplace company.
Complex Fulfillment
The appeal of Amazon has always been Fulfillment by Amazon, where every order is shipped and every return processed for you. When you add eBay or Wal-Mart, the option to have the Marketplace fulfill is not there. There are two approaches to consider to overcome this obstacle:
Do It Yourself - Marketplaces like eBay has it's own shipping label creation page that you access once a product sells. It offers reduced shipping rates across the major carriers (USPS,UPS, and FEDEX). Get a label printer and some shipping materials, then print and ship from the office or home. If the Marketplace doesn't have a label creation page, use a site like ShipStation to get the same reduced rates.
Use a 3PL - 3rd Party Logistics providers offer the same service as Amazon's FBA at similar rates. Companies like ShipBob will receive your products, integrate with your sales channels, receive your inventory, and pick, pack, and ship your products after a sale.
Algorithms and Rules
Every site ranks products in a different way. Amazon's ranking leans heavily on the keywords section, while eBay pulls keywords from the listing fields. Amazon advertising can be expensive but is very broad in scope, while eBay is narrow and can be free (though the free ads aren't very powerful).
This means a company has to learn the rules of each site, like what products are allowed, what you can and can't say when describing a product, and how to maximize and optimize each listing to get the highest performance and results.
And we have to remind you to check the costs associated with each. Amazon is usually the most expensive, especially due to the cost of advertising. But depending on a product's price, weight, size and more, other Marketplaces may be more expensive due to shipping.
What Can You Do To Prepare?
As we mentioned, these roadblocks should not stop a company from pursuing the multi-Marketplace approach. In fact, it should encourage, as many businesses will not compete on the other Marketplaces, leaving you wide open to reap the rewards.
Take It Slow
The idea of suddenly increasing revenue 20% can cause brands to want to jump in head first. Resist the urge. After identifying which Marketplaces make the most sense, go back and get deeper into the details to see which make the most sense immediately. It may be the one that simply offers more profit and more total customers. But it may also be the one that is very specific to your category. Once a decision is made, go all in. Learn the ins and outs, talk to people who have had success, and don't be afraid to experiment.
Work With Someone Knowledgeable
A smart businessperson knows when they need help, and isn't afraid of seeking out those who can offer it. Consider hiring knowledgeable people to explore options that make the most sense and can execute the vision. Companies like ARSN Digital have helped hundreds of people find success across multiple Marketplaces. You can also find independent contractors on sites like Upwork, though they may not have access to the same resources as an agency.
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