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.

Why Do Businesses Demand Forecast During the Festive Season?

Now that the festival is around there is an expected wave of demand for products at every store. Planning the products, the retailers are getting ready to block the shelves to increase their sales. 

Is this Enough to Run a Business?

Running a business is not just anyone’s cup of tea, especially when you are willing to grow, gain profit and flourish every season. Mere assumptions don’t work! You need to roll your eyes and foresee the future. You need to understand the kind of capital you need to invest, the number of products you need to produce, and the inventory units you need to keep up the stock. And able to answer,

  • What is your capital expenditure?
  • How much cash flow is required to make a profit?
  • What is your mitigation plan for the upcoming festival? 
  • What is your profit margin for this year?

Understanding your demand and forecasting your projections at a historical scale is important to predict the future and foresee the sales.

Well! The biggest challenge still lies in the shift of these projections for which you need to optimize your scale with time.

You need to understand how Demand Forecasting works in order to beat the challenge and make the right business decision. It is not hard to understand that demand is what is laid by the customer, and forecasting is the prediction that is done by the retailer to make supply decisions. But what’s hard is to get an accurate assumption of this demand with time and acquire the right amount of stock to meet the supply.

Demand Forecasting

Demand Forecasting is a progressive method that uses historical sales data to predict future sales figures. It is a comprehensive process that involves everything from planning, producing, inventory, warehousing to estimating, delivering, and logistics. It helps the businesses analyze the market potential and strategizes growth that is far away from any risk.  

For example, a store producing cake of different flavors refers to the last 12 months’ sales data and understands which flavor made high sales and in which season or occasion and based on the past sales he is able to forecast the shortage, make a plan and keep a stock. In comparison to the one that is new and is unaware of the flavors in demand, the prior store will always have the benefit of key sourcing.  

Steps to Forecast Demand for E-commerce

Although no one can be certain for the future, several techniques can help you with a detailed analysis and better business estimation. So, whether you are a small business or large, Demand Forecasting can help you draw the margins and understand that there is no business without demand and it needs to be processed with high accuracy.

Schedule Peak Period 

Depending on the season and festival the trend occurs anytime. There are many peak periods around the year when the sales are more in comparison to the other days. Viewing historical sales can reflect the important months where the sales dip or is good or discount should be offered to engage the customer or not.

Prepare Budget

Efficient financial decisions are important to reduce unnecessary expenses and expand the opportunities to choose a strategic investment. Keeping extra stock at a low sales period just wastes the resources and increases unnecessary budgeting. So pre-budgeting to enhance operational processes around forecasting demand is a must.  

Plan Production

Anticipating what customers want and keeping the stock helps channelize the offerings. Customers want what they want and acquire it when they want so your demand forecasting should be in sync with the market. Else you will lose the customer to your competitors and will take more time to engage the new.       

Optimize Inventory

Demand forecasting helps drive responses to harness analytical optimization and shape the inventory to reduce error over time. It helps you remain right at the place where you are, never under or over-stock. Your evaluated performance over time will increase the word of mouth and gain expansion in business.    

Strategize Development 

Demand Forecasting is a one-on-one task. The process requires testing, learning, and then developing a strategy to enhance sales. Closely analyzing the products and efficiently tracking the sales can help make the right strategies for development. Network balancing should also be taken care in order to constrain your business environment for a longer period of time.

Quick Tip – To avoid frequent stock out you need to keep a feedback loop and start your next forecast with updated allocations. 

Types of Demand Forecasting

The benefits of demand forecasting can be truly tasted once you are aware of your current position and have a clear idea of where you want to reach. There are different types of demand forecasting that can help you weigh your data and depict it over a period of time. They are broadly categorized into two:

On the Basis of Economy

Macro-level

This forecasting deals with the economic level demand that is measured by the national income and Index of Industrial Production (IIP) etc. It helps businesses understand the opportunities for their expansion and market shift.

Industry-level

This forecasting deals with Industry level demand for products as a whole, such as demand for cement, clothes, steel, pharmaceuticals in India, etc. It guides businesses with statistical data for trade under any policy.  

Firm-level

This forecasting deals with the product demand for a particular firm, such as demand for Raymond clothes, Birla cement, etc. It helps businesses improve the aggregate growth of products in the market.

On the Basis of Period

Short-term

If you are a new firm this forecasting is especially for you. It covers forecasts for a short period, generally from six months to a year and is most useful in making tactical decisions depending upon the nature of the industry you are in.

Long-term

This forecasting is for a longer period. Generally done by the old firms for the period of two to five years or more to help take major strategic decisions, such as the expansion of plants, opening a new unit, etc.

Major Demand Forecasting Models

To trail the influence and gather vital information of your business, simple and statistical methods are adopted which are classified under various models.

Market Research

It is a very generic research technique that is completely goal-oriented. It requires customer-specific surveys which are in the form of questionnaires, surveys, feedback, or opinion that are laid while purchasing a specific product. As this research is very random it should be taken care of in terms of location, geography, and demography. 

This method is mostly adopted when businesses are forecasting for low-demand products, as it gives a clear view of its sales in specific regions. 

Sales Opinion

It is a complete knowledge and experience based method that requires input from each salesperson of a particular region. The salesperson depicts data depending on the customer’s demand and evaluates the perspective that presents the final judgment. 

This method is more accurate as it relies on the perspective of the salesperson who in case of any error is held accountable.    

Delphi Technique

This Demand Forecasting is done by the panel of experts and facilitators that are appointed for a specific segment. The questionnaire is sent to the experts and a consensus scenario is attained after a few rounds of expression and discussion among the experts. 

The method is mostly adopted by big businesses to get the most accurate information from the experts. The only flaw lies is, time consumption. 

Econometric Technique

It utilizes a complicated mathematical equation to correlate influential factors with the demand. An equation is fine-tuned and the variables are inserted to generate an accurate forecast. It is mostly used to track economic factors of the current scenarios like the businesses that flourished in the pandemic or the businesses that flourished before pandemic. 

The data of this method is adopted only when the controlled conditions are applied by you. 

Barometric Technique

It is a unique method adopted to predict the future depending on the recording of the past and deploying the statistical analysis on the series of economic indicators like leading, lagging, or concurrent. The leading shows the market activity that is ahead, lagging that change after a short time and the concurrency that varies according to the economic activity.

This method gives you the complete range of information where your business lies and where you can take it. 

Trend Projection

It is a method that deploys historical data of around 20 to 25 months to project the demand scale by graphical or square method and forecast the specific product. The most granular level of growth can be attained by examining the date and time of the order, revenue or return. Depending on the data you can adjust your inventory and evaluate your business.   

Quick Tip – In a competitive scenario as today, if you are not forecasting the demand, you are losing a lot, not only in terms of staff, production and sales but also in terms of efficiency and profit. A good forecast provides appropriate planning, selection, layout and management that lead to profitable business.

With the market shifting so drastically it becomes difficult to track the customer demand and meet its expectations. Demand Forecasting helps you channelize your work and make a record so that you are able to make decisions, launch products, plan inventory and optimize the supply chain as per the demand. 

Connect with ANS Commerce

At ANS Commerce, we help brands build their business and take it to the level where they imagine. From brand building to demand management ANS works on everything to help you increase sales. You can also rely on us for inventory optimization, performance marketing, and warehousing to improve your conversion rate instantly. 

Get connected and request your free DEMO now! 

Festive Season 2020 Trends: ANS Commerce facilitates 2.5X more festive sales at 25-30% lower cost for its partner brands

In inclusion with sentiments and happiness, the festive season comes with deals and offers for buyers to swear by. But with the COVID-19 still being the reason for the forbiddance of offline purchase, usage of e-commerce websites and marketplaces have increased.

Undoubtedly, the Indian e-commerce industry has surged, especially after the onset of this pandemic. Not only has established e-retailers boosted their businesses over this time, but we can see many Direct-to-consumer (DTC) brands entering the market and earning profits. To showcase the same, the Indian festive month has solely witnessed a huge difference in terms of sales figures that e-retailers have acquired.

Covering and comparing all the e-commerce festive trends, ANS Commerce’s report throws light on the sales volume along with new marketing ideas and warehousing trends, its partner brands have followed this festive season. Right from the difference in the sales volume from that of the last year, to new marketing trends including digital products, to segment-wise changes, we have curated a whole bunch of trends for you. So let’s dive deeper and take a look at the festive season sales insights!

Increased Adoption Of Online! How and Why? 

Comparing offline sales and online sales, many rational minds are opting for the latter than the former. To count a few reasons, no contact delivery is the major intention for people to go online. Not only can you get your products on time, but can also avoid the transmission of the virus. This notion has gotten said popularity from online retail brands, especially amid the Diwali season. 

Hoarding clothes and other items was a trend amidst Diwali, but this year, there is an upsurge in the trend, especially on e-commerce websites including both marketplaces and independent brandstores. There is seen 2.5X more sales at 20% – 30% reduced cost with the assistance of marketing optimization, multi-city logistics, and lower order return.

Decoding the Sales: Thousands of offers, millions of sales, and countless excitement!

Let’s unpack the sales volume exhibited amid the festive season. The sales have turned out to be a megahit this year as our partner brands reported to have done sales of ~34 Cr. Gross Merchandise Value (GMV). Enumerating the volume of items shipped this year, brands have pegged shipment volume of ~5.7 lakhs of products this year. The upsurge unravels how new-age digital channels such as D2C and omnichannel have become a necessity for e-commerce businesses.

How was this festive season different from last year?

No one can forget the first four months of this year when there was an absolute fear of the pandemic, resulting in a lower number of sales. But did we ever imagine that this Diwali will bring light and prosperity to e-retailers? 

To add in the facts there is a clear-cut difference between 2019 and 2020. The report counts in the average order size with an increase of ~20% from that of last year’s. From this. you can absolutely sense how individual customers have spread the hype of online purchases this year. 

The major upside to online sales during this pandemic is the non-COD payment option. In fact, there are many brandstores that are declining the option of cash on delivery as cash transfers can potentially become a carrier of infection. This has resulted in a rise of ~58% of the share of pre-paid (non-COD) payments.

“The proportion of orders from non-metropolitan cities have solely increased by ~11%, making a contribution of more than 50% to the festive sales. With metropolitan cities such as Delhi and Mumbai contributing to only 35% sales.”

Warehousing and fulfillment also play an eminent role when it comes to e-commerce sales. With an almost ~155% increase in the GMV as compared to the year 2019 for the same set of brands, it’s quite obvious that warehousing and supply must have played an incredible role to execute the operations. So, talking about the trends, the Stock Keeping Unit (SKU) on brandstore has increased by 20% – 25%, resulting in better depth and breadth of inventory.

Along with the drift, the preference of brands has also seemed to change with the rising number of stock-keeping. To enable simple, fast, and reliable delivery, brands are seen to get fascinated by multi-city warehouses and omnichannel delivery options.

New Marketing trends observed with a special focus on D2C segments!

With sales and warehousing, there’s another aspect to e-commerce that’s been transitioning amid the festive season. Marketers around the nation have come up with seasonal marketing ideas to change the digital attire of their brandstore. Offers and discounts sound like traditional concepts when it comes to incorporating them into marketing ideas, especially in 2020. Each year brands perform something new in terms of marketing, but this year the creativity seemed to go a step further. And, the result has been fruitful as the share of new shoppers has increased.

To head towards victory, marketers, and e-retailers have introduced many digital products to encourage their prospects. This year, there is an upsurge in E-gift cards and warranties. 

The main focus remained on customer-loyalty plans, the brands have chosen to use loyalty programs and payment offers to lower customer acquisition costs. 

Loyalty programs are a great way to engage your customers with you. Click here to know more about it among other ideas to get customers reviews and ratings!

Diwali is the season where you can come up with new offerings as it’s the peak time of the year when people look for new and creative options to gift their loved ones. Keeping that in mind, many new and established brands have expanded their product portfolio and introduced a varied combination of product mix for their customers.

“Brands also witnessed a boost in the sales of gift packs and combos, especially in the dry fruits and beauty & personal care segment.”

Sectors in specific that saw major sales!


We are well aware of festive traditions – buying new clothes is one of them. Like each year, this year also Fashion & Lifestyle continued to win the race as it is the major contributor in sales.  

Health has been a major concern this year especially for new mothers and infants, leading to a spike in the Mom & Baby Care category with 14X.

“Beauty and Personal Care segment contribution has increased by 2.2X as compared to last year, making it the fastest-growing category.”

In the current scenario of washing and sanitizing each item, there is a surge in the hygiene and germ control category itself. The brands under this segment have forced people with their aggressive marketing campaigns to stockpile products such as vegetable wash, surface disinfectants, and sanitizers.

This indicates the fact that this year has been full of prosperity and happiness for e-commerce brands. ANS Commerce has supported its brand partners with brandstore tech, warehouse & fulfillment, performance marketing, and marketplace management. 

If you’re planning to claim your stake in e-commerce real-estate and want to be one step ahead of your competitors, then request your free DEMO now!