New year. New Marketplaces. What to consider before jumping in.
If you have read some of our previous blogs you will be aware of the many benefits to brands of selling via marketplaces, and their place within the channel mix.
So what should you consider if you want to move into marketplaces?
Key considerations typically fall into the following 3 areas:
Here we will detail a check-list of the key considerations Rich Insight’s account management team go through with all our customers before we help them build a winning strategy and kick-off the delivery process.
- What are your business objectives in terms of growth? Are they product, market or revenue/margin led?
- What are your global ambitions? Are you looking to test any particular markets?
- What, outside of incremental revenues, are you hoping to achieve from the marketplaces channel?
- What stockists are currently selling your products?
- What proportion of your product are your stockists the selling through marketplaces?
- What stock is currently being sold on each marketplace? And what % is new stock?
- What stock could you create specifically for marketplace audiences?
- What price points would be relevant for which marketplaces?
- How set up are you for dealing with the logistics side of the major marketplaces?
- Would entering a third party logistics service (3PL), such as Fulfillment by Amazon (FBA) or Shipwire, be considered?
- How will you look to ensure quality customer service and meet marketplace standards?
- How can you manage your stock allocation when introducing a new channel?
- Depending on your eCommerce platform, what are your options for:
- a) passing product information
- b) updating stock
- c) downloading and processing of orders
- d) how are inbound customer services queries integrated
Working with a delivery partner:
Working with a strategic delivery partner can rapidly accelerate a brands entry into the right marketplaces by helping you to answer the right questions before you embark on your journey. And as identified previously, brands who lack internal resource to manage this dynamic channel can also lean on the expertise and bandwidth of a 3rd party to support in the day to day management, making it much more accessible.
For a proven path to success, work with a partner who has the necessary experience to help you launch into the most relevant marketplaces for your brand and who will optimise your trade within it.
Whether it be to extend your brand reach and sales online, support your outlet strategy, optimise new product categories or plan for international growth, choosing a partner who can help you extract the maximum value from your investment will ensure you stay ahead of the curve.
This is particularly prevalent for smaller expanding brands with limited resources and experience with global marketplaces. Especially as customers continue to turn more and more to aggregators for their online search.