Is multi-channel selling now essential for all online businesses?

Is multi-channel selling now essential for all online businesses?

  • Yes, we couldn't survive without it

    Votes: 42 77.8%
  • No, we do just fine selling on our website

    Votes: 12 22.2%

  • Total voters
    54

Bluepark

Free Member
Feb 9, 2012
50
11
Witney, UK
As an ecommerce provider to thousands of small to medium businesses, we hear a lot about multi-channel selling on different platforms.

Online marketplaces such as eBay and Amazon continue to grow in popularity with consumers and many online businesses are utilising these platforms as a way to reach customers who may not have seen their products otherwise.

Our own eBay integration is one of the most popular features we've ever released, but we've also heard a great deal of feedback regarding aggressive competition, high fees and squeezed margins.

Is multi-channel now an essential part of ecommerce? Can an online business survive just by selling on their own site anymore? On the other hand, is multi-channel selling profitable enough in the long term?
 
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fisicx

Moderator
Sep 12, 2006
46,713
8
15,384
Aldershot
www.aerin.co.uk
It depends.

If you sell your book on Amazon then you may not need any other channel.
If you sell knitted hats on Etsy then that may be all you need.
If you sell nuts and bolts wholesale then you may only need your website.

So some might need multi-channel and some may not.
 
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Matt Thorpe

Free Member
Apr 13, 2015
95
30
48
London
I think it depends on the company / brand. Marketplaces are for every company.

There is a lot of noise out there with thousands of cool little companies springing up out of nowhere. Competition to get on the first page of Google is tough and even the big boys are struggling with high quality content on their sites because they are not as agile or creative.

I work with a lot of fashion companies (some premium labels) and they don't see eBay or Amazon as part of their strategy because it's not 'on brand'. They rely of retail distribution or being aggressive with social marketing to try to get the word out. I also work closely with them to maximise the relationships with their existing customers by understanding them and engaging with them on a more personal basis. This certainly improves customer loyalty.

Whilst Amazon and eBay are not necessarily the place for premium brands, you can't argue with the sheer volume of visitor traffic and the number of sales you get. It obviously comes down to the strategy of each individual business. However, protecting your brand is one thing but, if you don't have the budget to market and PR your brand, you may struggle to get anywhere. It's a bit of a trade off.

Saying that, I have seen some premium brands use the platforms to sell a lower price product (more entry level) which has been manufactured specifically for that purpose. This helps them to reach the huge audience, drive volume at good margin but still enables them to maintain their premium positioning for their core range.
 
Upvote 0
I think that many merchants would give multichannel selling a go. However, given there isn't any software that really makes it painless to do all things that are required operationally (listing, inventory, shipping, forecasting, customer service, etc). The investment of time is too great for the marginal returns. Your problems become exponential as you increase channels as oppose to staying moderately linear in a single one.

I know that I'm leaving money on the table but I also know that it would cost me more upfront and ongoing to continue certain channels. The only way I would test / use other channels would be leverage software that does all the "gluing" for me. I think we're still in relatively early days of ecommerce and selling multichannel will become more efficient for all. We're just not there yet.
 
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bharris

Free Member
Dec 30, 2014
543
82
We would love to go multi-channel, but simply can't afford the fees applied at our current margins!
That's why we don't sell on anything other than our website. I have also currently stopped google ads and its made no difference, in fact we have had a better moth than we normally do for June/July. Just because everyone else does it, it might not be the correct thing to do for you.
 
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Tech4Homes

Free Member
Sep 30, 2012
461
63
I hate eBay if I'm honest, it's not what it used to be, when I did like it.

However I do sell on eBay.

The way I see it, is there are two types of customer, those that go straight to google and those that go straight to eBay.

I list most of my items on eBay and pick up sales from the latter customer. I pay high fees, but I feel that if I didn't list it on eBay then I wouldn't have had the sale anyway. I don't intend to make eBay my primary source of sales, I just list there to pick up buyers who wouldn't buy otherwise.

I don't get into price wars, I don't expect to sell thousands when there are cheaper crappier versions on there.

It used to be a bit of a ballache, however now I've moved my sites to Magento, consolidated them and linked all of my products to eBay and Amazon via M2E Pro I now get orders seamlessly, without worrying about actually working on eBay or Amazon too much.

So yes, software is key, I think most people will happily list to eBay if it's a seamless, easy process with orders being processed as per any other order through the website.
 
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Martina Wade

Free Member
Jan 16, 2015
35
8
Multi-channel is not essential - but it does make sense that you and your brand try to be where your customers are. And not trying out different channels would be a missed opportunity in my opinion - you won't know if it works until yo've tried it. Then you may find it is not worth it for you - or you may find a new unexpected source of business.
 
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@Tech4Homes how do you like M2E Pro? What were the main pains you were trying to solve? I hear M2E can be quite involved, so you must be reasonable technical or at least have been around the block to guide yourself.

I've been thinking about M2E but just havent made the switch as I'm not sure what my sales would look like on ebay.
 
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Pish_Pash

Free Member
Feb 1, 2013
2,582
673
For me multi channel is essential ...it's kept me afloat, while I go for bigger customers.

Ebay on it's own got me started, but if I hadn't have also started selling on Amazon, then ebay would have not kept a roof over our heads alone...& I'd have long stacked my hand (Amazon now eclipses ebay by some margin). I have a website, but it only accounts for about 5% of my annual turnover...& frankly, I can't compete in traffic terms without lining Google's & Bing's pockets...that path is just not for me.

So multi channel all the way here...sure it's not easy (but that's a good thing - else everyone would be doing it)
 
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AndyMorley

Free Member
Nov 2, 2011
23
3
Nottingham
Ummm it would depend on the products you are selling in my opinion. The Amazon and Ebay fees kill it for certain products, so multi-channel isn't possible cause the margin in certain products isn't there, but if you can find a product range who's margins can swallow up these fees then absolutely you should be using multi-channel eCommerce.
 
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leshka_uk

Free Member
Sep 9, 2014
12
1
@Tech4Homes how do you like M2E Pro? What were the main pains you were trying to solve? I hear M2E can be quite involved, so you must be reasonable technical or at least have been around the block to guide yourself.

I've been thinking about M2E but just havent made the switch as I'm not sure what my sales would look like on ebay.

You could get Magento+M2E Pro hosting bundle from simpleservers.co.uk and then DIY using understandinge.com or contact m2epro directly to see if they can migrate you..
 
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S

Steve Alphabet

Whichever channel, it's incredibly important to store your customers' email addresses, and keep in touch now and again. That way if eBay/Amazon or whoever else decide to change their T&Cs, kick you off their platform, or even go bust, you still have all your own customer database. Relying on someone else's platform to build up your own business is always risky...
 
Upvote 0

antropy

Business Member
  • Business Listing
    Aug 2, 2010
    5,316
    1,101
    West Sussex, UK
    www.antropy.co.uk
    Our own eBay integration is one of the most popular features we've ever released, but we've also heard a great deal of feedback regarding aggressive competition, high fees and squeezed margins.
    From all accounts it's extremely competitive. Gone are the days when you could buy small amount of product at a slight discount and expect it to sell on eBay. Now most start-ups will struggle to find a product niche where the margins between what they can buy and sell for are big enough to be worth selling.
     
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    fisicx

    Moderator
    Sep 12, 2006
    46,713
    8
    15,384
    Aldershot
    www.aerin.co.uk
    Whichever channel, it's incredibly important to store your customers' email addresses, and keep in touch now and again.
    How are you going to do this? When I buy from Ebay or Amazon I do not give you permission to contact me ever again. If you are collecting my email address for marketing purposes you are breaking the T&C of the sales platform.
     
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    Tech4Homes

    Free Member
    Sep 30, 2012
    461
    63
    @Tech4Homes how do you like M2E Pro? What were the main pains you were trying to solve? I hear M2E can be quite involved, so you must be reasonable technical or at least have been around the block to guide yourself.

    I've been thinking about M2E but just havent made the switch as I'm not sure what my sales would look like on ebay.

    I've built the Magento site myself (after finally deciding to move from Opencart for good), installed and set up everything myself (so far!) it's been hard work and it's taken a lot of learning but I'm now in action and currently moving my other sites to Magento as multi stores.

    I found M2E really easy to use if I'm honest. Much better than Openbay. M2E Pro + a shipping module that forwards orders to the relevant suppliers, and a sales commission module that enables my field staff to earn commission on all their orders, is the best thing I've done for my business.

    Wait for me to hit a problem with Magento that requires a rather expensive developer and I might not be so positive about it though :D
     
    Upvote 0
    Yes if you are selling on a closed channel like amazon and ebay it is very difficult to get their email address. However I've seen merchants contacting me via my physical address to reengage and market to me.

    PRO TIP: I hand write a thank you letter to my top 25 customers and this is an amazing retention tool.
     
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    Tech4Homes

    Free Member
    Sep 30, 2012
    461
    63
    @Tech4Homes sounds like you are very technical and M2E is very powerful. What shipping module did you use? I would have suspected something like that to have built in shipping but I guess a plugin is natural given magento's developer community.

    The default shipping is pretty good and there is a free multi flat rate shipping which I make use of.

    The shipping thing I mentioned is more specific, a lot of my stuff goes direct from supplier so upon receiving an order I can select to send the order directly through to the relevant supplier via email with a PDF delivery note attached. I can also set this to automatic so that the order process itself and sends to relevant supplier for fulfilment. This was a £150 module so didn't break the bank and not everyone will need it.
     
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    The default shipping is pretty good and there is a free multi flat rate shipping which I make use of.

    The shipping thing I mentioned is more specific, a lot of my stuff goes direct from supplier so upon receiving an order I can select to send the order directly through to the relevant supplier via email with a PDF delivery note attached. I can also set this to automatic so that the order process itself and sends to relevant supplier for fulfilment. This was a £150 module so didn't break the bank and not everyone will need it.

    I gotcha, so it is a dropshipping rule module to help you automate, that makes sense. I don't do much dropshipping myself. Last question, does it batch up all the orders that should go to that dropshipper or it just does it one by one as the sales come through?
     
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    Tech4Homes

    Free Member
    Sep 30, 2012
    461
    63
    It's not drop shipping in the true sense of the word. Same process, but I don't use drop ship suppliers. I have very good relationships with a few key suppliers and over the past 2 years and a couple of hundred K spent we now ship direct on a back to back basis as well as holding stock of the best selling items.

    The module doesn't seem to do batch drops, it might do and could probably be modified to, but I use it on a strictly order by order basis as we have a lot of stock in our own possession as well so I can control where the goods come from for maximum flexibility.

    Now all I want to do is the ability to set up Interlink deliveries direct from Magento! That'd save some time!
     
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    We're working on a magento plugin that will bring in as many carriers into one api. Let me know if you have other carriers you are interested in. I'll let you know when we have finished it up. Thanks for the additional info on the Magento stuff.
     
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    G

    ganah-allan

    Good option to go multi-channel if you have the budget and the time. However, one possibility is to carefully design your website and make it effective in converting visits to sales. And then, you can promote your products or services via social media. All marketing efforts then point back to your website. That is one strategy that you can employ as an alternative to multi-channel selling.
     
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    abhay_walia

    Free Member
    Jul 18, 2015
    3
    0
    34
    Well, it is recommended because integration with eBay, Amazon helps you to expand customer base. You don't want to miss out on customers. Moreover, it provides wide options to promote your products , thus increasing revenue. I was reading about multi-channel integration on ocodewire's website and it made complete sense. It will be beneficial for your online store.
     
    Upvote 0
    It depends.

    If you sell your book on Amazon then you may not need any other channel.
    If you sell knitted hats on Etsy then that may be all you need.
    If you sell nuts and bolts wholesale then you may only need your website.

    So some might need multi-channel and some may not.


    I completely agree with your some may, whilst others may not but it is also very important that businesses know where their businesses can grow and develop and move into new areas but without taking their eye off where the main income is coming in. Focusing on a fresh channel and neglecting your cash cow is a bad strategy but many have got caught up in the 'we can also do this' frame of mind only to realise that they have neglected to do what they were already good at, leaving them at a lower base than before they started.

    In terms of multi channel it is always good to push your boundaries and explore those that offer you extra value but always protect your core business.

    Hope this helps
     
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    Paul Gregory

    Free Member
    Jul 31, 2015
    77
    1
    61
    Hi, just joined the forum for some advice, may as well get stuck in.

    I think software is a big factor, if you have a product in the warehouse ( in my case under the settee, or in the cupboard) and all of a sudden you find you are on the front page, orders are flooding in but you cannot process the orders, smile for the cameras and deal with the stuff life throws at you at the same time... Big opportunity missed.
    As far as I am concerned the software does the work and I spend my time getting the product on the front page, when it gets there its not going to be there for long, so the software must be able to cope with taking the money and ordering the supplies. ( drop shipping).

    Multi channel is only possible if the software can cope.
     
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    benecklary

    Free Member
    Jul 24, 2015
    3
    0
    40
    Hi Multi channel selling is depents on your product if you targetting electronics, clothings, rugs, carpets multi channel is must. because you cant attract all target audience in your own website. end of the day you need a business conversation and sales of your product. if you uploaded in your own website it will time consuming process of sales and getting visitors. amazon, ebay this 2 brands dominating market.

    and also create and distribute coupon's will help to get a conversion
     
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    Prettycool

    Free Member
    Apr 10, 2009
    22
    4
    Datchworth
    We stopped selling on Amazon because the work involved on listing and stock control was taking to much time so when Bluepark introduced the Ebay API it become very easy to sell on this platform and stock control was formatted without problems. We can't wait to go back on Amazon once the Bluepark intergration API is sorted hopefully before the Christmas rush!
     
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    For the business I work for it is massively essential. We are primarily an eBay/Amazon business with other new channels coming in such as the French cDiscount and Rakuten. We have our own website, but the sales that come through it are quite literally a trickle.

    Something which has highlighted this point is that we have recently had our Amazon account suspended (not entirely our fault I might add) and sales have dropped of by a good amount. At least half. So we definitely rely on multi channel. But like it's been said here already, it's dependant on what your business is. If you have something that can survive on one channel then multi channel may not be needed or worth doing. I think ecommerce is a bit too diverse to give a yes or a no on this subject. But I can't wait to see some insights from other businesses. This could be an interesting thread
     
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    R

    RepricerExpress

    A lot of our customers are doing really well just selling on Amazon. It's a great place to start due to the vast number of customers you can get your products in front of.

    Once established, some then try out other channels and test profitability. But as noted, it all depends on what you're selling and your business objectives..
     
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    For the business I work for it is massively essential. We are primarily an eBay/Amazon business with other new channels coming in such as the French cDiscount and Rakuten. We have our own website, but the sales that come through it are quite literally a trickle.

    Something which has highlighted this point is that we have recently had our Amazon account suspended (not entirely our fault I might add) and sales have dropped of by a good amount. At least half. So we definitely rely on multi channel. But like it's been said here already, it's dependant on what your business is. If you have something that can survive on one channel then multi channel may not be needed or worth doing. I think ecommerce is a bit too diverse to give a yes or a no on this subject. But I can't wait to see some insights from other businesses. This could be an interesting thread

    As far as my experience goes, or rather such of my clients, the most successful businesses nowadays rely on a number of diverse channels.

    They'd have a web site where, naturally, they don't have to pay the commission to the marketplace, however they'd need to invest into promotion of the website in search engines (SEO, PPC, Social marketing, etc). They would sometimes have multiple websites, or a single site with multiple front ends - one for each country, for example, or one for each range of products - in case they trade multiple ranges.

    They would normally have an eBay account, or rather multiple accounts with eBay. It could be because they list their products in different countries as well. Naturally, they'd use Amazon in the same way. Other marketplaces like CDiscount, Rakuten Play - sure, why not.

    Then, there's mobile. Mobile-friendly website or a mobile app (and with the app we have iOS, Android, Windows).

    Finally, there's sometimes the call centre where they take phone orders. And the showroom - so there's a need for Point of Sale solution.

    Add an Accounting solution like Sage to it too - not a sales channel, but contains all the data, all the stock, prices, orders, etc.

    It is indeed a set up that more and more of our clients move towards.

    Several years ago our task would be to build an Ecommerce website, or design an Ebay account. Now, it is so much more than that - it is about building those blocks AND linking them all together. Designing systems so there's a master database where the customer can enter product description, manage price and stock levels and work with the orders, and so that the master DB gets automtically synced with ALL possible channels in the most efficient way.

    What I see from our clients is that they can not rely on a particular channel anymore - there are pros and cons about every channel (website - needs funds for advertisement, lower transaction fees; Ebay / Amazon - no advertisement costs, higher transaction fees, etc) and they try to balance to develop their business in all directions.

    What they say is that they want to deliver the "omni channel" experience to their own customers, i.e. when a product is the same across all channels, when user experience is somehow similar, when special offers could be used online or off-line, mobile or in the showroom, etc.

    I believe in the future there will be even closer integration between the channels, and also expansion into the global market - so there will be more emphasis given to international shipping and payment methods.
     
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