Top 5 Sales Channels & Their Benefits in E-commerce Business

The E-commerce sector is expanding at a fast pace due to advancing technology and shifting customer tastes. People today are making new purchasing choices with smartphone applications, shopping websites, social media platforms and marketplaces. This is why diversifying your sales channels is essential if you want to pour sales immediately into your bucket.

Initially, new businesses might want to concentrate on a single sales channel but businesses that connect with consumers where they already spend their time are the most successful ones. So organizing a multi-sales channel plan and making a presence on various platforms can help you reach a large audience and boost sales instantly.

However, don’t hop on every sales channel that you come across. Not every platform is meant for the sales of your product. You should select the sales channels that best represent your brand and match your company’s enterprise. The most prominent sales channels are given to help you choose the ones that can meet your requirement well.  

5 Important Sales Channels for your Business 

Marketplaces

The use of marketplaces is a common choice for both consumers and sellers. Brands can post their items on these platforms, take care of the logistics, or let the market handle them. However, sellers must pay fees, which reduces their sales profitability.

Although most customers who use marketplaces are searching for a great deal rather than brand loyalty, they remain a significant entry point for customers. Selling on marketplaces can therefore be a beneficial addition to your sales channel plan if done sparingly.

Social Media

In spite of the fact that marketplaces facilitate huge sales, social networks are seeing a significant increase. They enable marketers to sell to their followers directly without having to go through another platform in the middle. Several social media firms have already launched integrated e-commerce channels to increase their product sales. Users can instantly view the price, and place their order for the desired goods by clicking on a picture or video.

These choices are already accessible on well-known social media platforms like Facebook, Instagram, and Pinterest. 

Own Website

You won’t have to worry about market constraints, costs, or rules if you run your online store. Your e-commerce store is one of the greatest sales channels accessible. However, investing in it could take more e-commerce resources but the long-term rewards outweigh them. Moreover, the brand involvement makes it easier for the customers to access, rely and purchase the products from the site. 

Product Comparison Site

An increasing number of products and their variety in different brands make it difficult for customers to select the one that is suitable for them. So, they dig for details on product comparison sites to get a clear idea of the desired product. The sites like Shopzilla and PriceRunner help customers get complete knowledge and also make fine choices on the product. However, these sites also play a huge role in increasing the sales of the brands as well. The distinction and benefit of this kind of channel are that the comparator connects the product directly to the pages of your website rather than acting as a middleman or as a salesperson.

Retail

When we talk about retail the first thing that comes to mind is the store. Retail is not limited to just a store but includes outlets such as pop-up shops, artisan fairs, farmer’s market booths, or even a shelf in a neighbour’s shop. Retail is a fantastic method to get your goods out there, whether you manage the store independently or whether the store owner supports your business as a distributor. The biggest benefit is that you get to interact personally with your consumers and receive real-time feedback.

Quick Tip – With multiple sales channels managing inventory and fulfillment can be a hassle. Prefer taking the help of a third party in such a case. 

Benefits of Using Multiple Sales Channels

Provides Buying Flexibility

It provides an omni-channel experience to the customers allowing them to purchase the product in many ways. Customers get more alternatives to choose how and when to buy if you make it simple for them to access your goods in many ways, such as through an Instagram post or a smartphone application.

Generates More Revenue

The more channels you open, the more probable it is that new customers will find your stuff. Thus, making a presence on new sales channels can result in more opportunities to expand your business and diversify the sources of your revenue. 

Drives Quality Traffic

The main objective of every e-commerce company is to focus visitors on the online store since this is the most lucrative source of income. By establishing connected sales channels, you can bring in more visitors to your website who are more likely to suit the buyer’s profile you are seeking.

Improves Customer Experience

You’ll not only attract new customers, but you’ll also give your current customers more options for purchasing your goods, thus enhancing their experience. Customers prefer having alternatives and flexibility when making purchases, and multichannel selling enables you to give them both.

Highly Cost Effective

Investing in an online store and selling through multiple sales channels is still less expensive than opening a physical store with several branches around the country. The Internet makes it more affordable and simple to expand a business globally in a world that is becoming more and more digitally interconnected.

How can ANS Commerce Help?

ANS Commerce is a leading e-commerce enabler that helps businesses create an online presence with an integration-ready proprietary brandstore service- Kartify. We are a team of experienced professionals that provide everything e-commerce to our clients and partners. Our highly customized and tailored services help brands connect with their consumers and increase sales with solutions like performance marketing, marketplace management, and warehouse and fulfillment. Once you are connected to our experts you do not have to worry about anything. Whether you are lacking resources, technology or operational front, we will handle everything for you. So request your DEMO now and enjoy stress-free growth in your business.

How to improve your marketplace sales?

A perspective by ANS Commerce in SARAL 2020  – India’s biggest virtual e-commerce summit organized by Unicommerceзаймы микрозаймы без процентов на карту

Unicommerce successfully organized SARAL 2020, India’s first-ever virtual mega e-commerce summit on 30th May 2020. The summit brought together thousands of e-commerce sellers, brands, retailers, SME’s, and enterprises on a single platform to discuss on the theme ‘How can eCommerce Selling be Simplified’. The Industry leaders shared their thoughts, ideas, and plans to enable businesses around the country to understand and find solutions to their challenges in a post-COVID-19 world.

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Saral2020 Partnership

One of the key sessions was conducted by Amit Monga, Co-founder, ANS Commerce, on ‘Optimizing e-commerce presence through marketplace and carts’. He talked about marketplace scaling and how it is vital for a new brand or any brand on its e-commerce journey to get the marketplace model right and identify core marketplaces, and long-tail marketplaces that suit a brand’s product categories.

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Getting your marketplace model right

Here’re a few highlights from his session:

  • In-source vs out-source: A brand needs to choose whether it wants to do its e-commerce operations in-house or outsource it to a specialist. It’s a fine balance between promoter time/ cost and speed.
  • Horses for the courses:  Many factors such as model complexities (B2B2C, B2C, Dropship), categories, SLA levels for each marketplace, and returns management to ensure healthy sellable inventory must be kept in mind to achieve growth targets. 
  • Amazon Easyship vs FBA: Amazon is a marketplace that has various models for any brand aiming to become a seller and how a new brand must consider what product category it is in, how it should ship its products out to the end customer, and how it should manage inventory. For instance, a new fashion brand that is just starting out should preferably choose Easyship over Amazon FBA as a marketplace as it has the flexibility to ship products to the end customers from its premises without having to worry about splitting and replicating the inventory with Amazon warehouses and can also naturally progress to Sellerflex once the brand has scaled up.

Basic Hygiene
Marketplaces: Basic Hygiene

After identifying the right marketplace model, managing these four important hygiene factors is the game-changer in any market:

  1. Catalog management is essential to optimize content such as titles, keywords, enhanced A+ content, and product descriptions as these are critical for higher ranking, better conversions, and customer experience. Utilizing the assets available in the marketplace, such as having a brandstore and performing A/B testing with the brandstore can help achieve these objectives. 
  2. Identifying the right assortment that works for which market and observing the right trends and competition benchmarking can help you set achievable goals. To forecast future growth planning, a brand needs to identify the strength of the market in terms of pricing, the level of assortment in a category, and the right inventory planning. 
  3. Payment and inventory reconciliation with the help of business analytics is essential to grow at a sustainable and profitable rate. Every brand should recognize and understand the significant cost heads for each marketplace. To ensure that a brand grows sustainably, it must make full use of the information available in analytical reports and coordinate with the category teams to curate and execute marketing plans. 
  4. Reputation management or reviews from end customers on product, seller, or service are important. One should monitor the reviews and ratings to improve the quality of products, services, and pricing.

Now it’s the time to scale

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Leveraging each marketplace to scale your business

Once the right model is identified and basic hygiene is taken care of, one must have insights on how to leverage the strength of a marketplace to drive visibility and growth of business and how a business must plan its resources well to take advantage of each of these marketplace levers. For example, Amazon has a marketing platform known as Amazon Marketing Services (AMS), which the brands can use to drive CPC driven campaigns, product display ads, sponsored ads, or drive CPM promotions with category teams. Similarly, Flipkart also has its marketplace tools to improve visibility and ranking like product opt-ins. Other marketplaces such as Bigbasket, Nykaa, and Grofers have product sampling tools that help the brands to segment the right set of customers and reach out to the right target audience, which has become very crucial to surviving in the e-commerce space. These marketplaces also allow brands to run performance marketing campaigns on traffic driven websites such as Google, Facebook, Instagram, or Snapchat.

ANS Commerce enables execution across 15+ marketplaces and harness marketplaces’ reach while optimizing brand’s resources. We integrate all your marketplace platforms to deliver a consistent brand experience to customers everywhere and manage inventory effectively. We process orders worth >4 Cr. on marketplaces on a monthly basis.

Our full stack solution offers brands to create their online brandstore and jump start marketplace operations in no time. We use the understanding of strengths and insights of various marketplaces to power brandstore. Our extensive experience across product, ecommerce, retail and marketing help the brand achieve higher sales and stronger brand differentiation.

For more information about our marketplace offerings visit our website.

If you are a brand planning to go online then drop us an email on [email protected]