There’s no doubt that making a sale is the best part of being a business owner. Converting potential leads to delighted customers makes all the trails of entrepreneurship worthwhile. Although the future of traditional business models has increasingly come into question, e-commerce has opened up a new world of possibilities for entrepreneurs.
While Amazon is often the go-to e-commerce marketplace (and for good reason), too many sellers rely on the platform to make the majority of their conversions. While making sales is always a priority, so is longevity. Without a diverse mix of sales channels, the success of your business solely depends on Amazon. That means that you, unfortunately, run the risk of losing your business to the next rule change or fee increase. By diversifying your e-commerce channels, you safeguard your business against potential losses and set yourself up for longevity. To help you better protect your business, we’ve developed 3 useful tips for diversifying your sales channels.
From Amazon to Etsy, the options for selling your products can seem endless. If you’re looking for an additional marketplace to sell your latest skincare formulation, then it’s important that you do your research.
Though you shouldn’t stretch yourself too thin, it’s important to incorporate a multi-channel approach when bringing your skincare products to market. While Amazon presents itself as an all-in-one marketplace, there are other e-commerce marketplaces with much more specific audiences.
Marketplaces like Etsy, for example, are more appropriate for handcrafted goods than they are for the latest electronics. This can be great for legitimizing your branding and getting your product in front of the right audience, but only if you’ve chosen the right marketplace. Utilizing additional marketplaces is a great way to diversify your sales channels and reach new audiences.
Don’t Overlook Your Website
Although it may seem difficult, developing your own web store is always the way to go. Setting up your own store gives you additional control for optimizing your sales funnel. For leads already interested enough in your brand to visit your website, offering them the option to buy without switching platforms can help make conversion a much easier process. Not to mention, having your website and sales channel all on the same platform can help reduce the cost of customer acquisition. The ideal e-commerce brand receives most of its sales from its own web store.
Setting up your site for sales doesn’t have to be difficult. In fact, there are several services that offer e-commerce integration for your website. To run a successful web store, however, you’ll need to optimize your web design and sales funnel to offer your visitors the best shopping experience. Shopify, BigCommerce, and WooCommerce are great places to start with integrating e-commerce software into your website.
Measure and Optimize Your Channels
The final tip is to measure and optimize. The key to successfully diversifying your channels is understanding how they work. It is important to take note of how each channel performs and which customers are visiting them. This not only gives you more insight on your customers but gives you the opportunity to truly customize the messages they receive from your brand.
Diversifying your sales channels gives you the added ability to segment each channel for different audiences. For example, you can offer certain products to one persona on channel A, and other products for a different persona on channel B. This allows for a more personalized experience for the consumer.
Measuring your sales channels also allows you to better distribute your resources. If you know that 60% of your conversions on channel A are recurring customers, then you can distribute more of your marketing resources to channel B. These types of insights are key for optimizing your business for the best ROI.
Relying on one marketplace for your skincare brand is a recipe for disaster. While you shouldn’t abandon the idea of platforms like Amazon altogether, you should be cautious of how much your business depends on them. Diversifying your sales channels not only presents you with the opportunity to make more sales but increases the ability your business has to withstand market changes. While it may take a bit more work, the benefits of a multi-channel approach are well worth it.