Have you ever thought of adorning your store with multichannel selling ingredients? ‘Many would say,’ it never crossed their mind. Are you one of them?.’No worries, most sellers have not even started thinking of how to maximize their presence through selling on online marketplace platforms. It all started with the intent of making your brand gigantic among this cut-throat competition. But you must be wondering how? Here, we bring you the five most-awaited hidden secrets ‘why Magento sellers must sell products on more than one channel’ disclosed in the blog.
What should we discuss first? Best way to sell online or the benefits of selling on online marketplaces? Let’s discuss all with real-time market insights, one-by-one.
According to a report of IDC Retail,”multi-channel consumers’ spendings are higher than single selling ones, including; 15-35% higher transactions, and 30% higher lifetime value than single-channel buyers.
Do not stick to one online marketplace! Start making big with other marketplaces too! Benefits are here!
The below piece of the content presenting the reasons to sell on multiple channels here has listed market insights based on real-time eCommerce market research and reports.
A Global Overview of Multichannel Selling
- US$1.97 trillion spent globally by visiting the top 100 online marketplaces in 2019.
- As per many market reports, Gross merchandise sales grew 18% last year.
- 57 marketplaces out of the top 100 are based in the United States and their sales up 15% by 2019.
- Although, with annual sales of $552 billion, the United States online marketplace is the second largest marketplace after China.
- 38 out of the global marketplaces ship outside the United States.
- 54 out of the top 100 marketplaces have launched in 2011 or later.
- As per many market reports, 36% of retailers have adjusted their marketplace strategy as a result of COVID-19.
- 93% of online consumers have shopped on global marketplaces.
- 57 out of the top 100 marketplaces that sold US$552.73 billion worth of goods globally in 2019.
Reasons why Magento sellers must sell on multiple platforms?
Selling on multiple platforms can be gearing up all your efforts to make big. It can rid of your store’s emptiness of making limited sale numbers year after year. Let’s go through the real-time global insight based benefits, reasons, and emerging online shopping trends of the global eCommerce industry.
Reason 1: High sales volume:
High sales volume always brings exceptional future business opportunities. Selling on multiple markets through different channels expands its capability to cater to shopper’s needs globally.
If you are selling pillow covers on your Magento based website and have 300 monthly sales. You decide to sell the same pillow covers on Amazon, Etsy, and Fruugo. Your sales volume will rise upto 4-5x since all these websites are based in different regions, making it possible for you to attract customers from different regions.
Reason 2: Enormous Revenue Through Multichannel Selling:
How much revenue can you generate through selling on multiple channels? The answer is just ‘enormous’ and ‘unexpected.
More Channels for sale = More sales volume
As per Shopify, on average, multichannel selling increases the revenue by 38%, 120%, and 190% by each additional channel selling.
Since the sales volume is going up, this will give rise to your entire revenue.
Look at the user story of Rachael, a retailer from the US who benefitted from selling their Magento based products on multiple sales channels like Walmart and jet.
Reason 3: Brand Awareness and Increase in Customer Base:
Except for investing in advertising and promotions, making products available on marketplaces will automatically enhance all your brand awareness campaigns. Presence on multiple selling sites will strengthen the brand USP and its offerings.
If a seller is selling a towel of brand x, which is very new. And, you are selling your x brand towel on the Rakuten marketplace only. Then the brand exposure will be limited around the Rakuten market base only. However, if you have listed and sold your towel on multiple channels like Amazon, ebay, Rakuten, Fruugo, etc., it will be raising the towel sales and awareness 5-6 times more. – “The Universe is being aware of towel X.”
You will get a large customer base by selling on multichannel. Only, it works on more channels, more selling, and more shoppers. Increasing the customer base is the key to business growth and profit. A large customer base will increase the overall conversion rate of selling something crucial for an organization.
If a seller is selling the products on a single channel, then he/she can add 500-1000 customers to the existing base. However, selling on multichannel will increase the chances of selling and converting customers in more than one region; it will increase the customer base by 6-7x more.
Reason 4: Maximization of Market Share by selling on marketplaces:
Lowering the prices, launching innovative products, and a quality assurance oriented approach is the direct market approach. Strengthening customer relationships and updating the store with the latest eCommerce extensions will help capture the whole market easily.
if a seller has sold 1000 products and earned 10,000$ in 2018, the total amount raised for the same in that particular region was 50,000$. Then the market share was 20% by single selling. However, the same one has sold the same product on multichannel and earned 30,000$ out of a total 60,000$. Then the updated multichannel selling market share is 50%.
Reason 5: Increase Customer Retention:
According to many marketing pieces of research, the average rate of repeat customers is 20-40%. eCommerce players are working smart on business intelligence to increase their repeat business. This is one of the backbone-building strategies of today’s eCommerce and online players. Except for the customers who live in the vicinity, single selling channels won’t match the multichannel eCommerce customer retention rate.
Reason 6: Increase in the conversion rate of customer
Conversion and expansion both are related to each other. The more the expansion, the more the conversion. As a seller, it is crucial to get your leads turned into your customers. For this, multichannel selling builds trust and shows the strength of your brand and products. The presence of a brand on multiple global online marketplace platforms ensures the highest rate of conversion and sales.
If an eCommerce seller receives 500 visitors in a month and has 100 sales through a single selling channel, the conversion rate would be 20% (500/100*100). On the other hand, if an online seller has received 200 sales out of 600 visitors, the conversion rate would be 30% (500/40*100).
Reason 7: Target based selling on online marketplaces
Multichannel selling will help your online selling optimize for target-based dominant global marketplaces. It will get your store out of the non-preferable regions that are dominated somewhere by marketplaces with their unmatched sales strategies.
In the USA, selling on Amazon would be more preferable instead of focusing on other marketplaces. In the United States region, picking up Walmart or Amazon would be a smart decision. It will get the store out of regional selling barriers.
Reason 8: Change in Social Media Shopping Trend
Social media can nowadays be considered as an ideal platform for selling online. Multichannel selling is trending in the arena of social commerce.
As per the North-American e-commerce agency Absolunet,
“87% of e-commerce shoppers believe social media helps them to make a wise online buying decision.
1 out of 4 business owners are selling on Facebook.
40% of merchants use social media to generate sales and revenue.”
Instagram shopping, especially shopping in reels, is trending these days. Sellers use to tag their products on Instagram within a single button of ‘View Products.’On the other hand, Facebook is very keen to attract people towards its converting Facebook pages into online storefronts.
These two social media giants deposing that selling on multiple channels is boosting through social channels, trending shopping concepts like Instagram shopping and Facebook marketplace, boosting it all tremendously. To make it all more robust and user-oriented, sellers can go for the Facebook and Instagram integrations to make a strong presence on social media giants.
Reason 9: Emerging Trend of Mobile Commerce and Online Buying Behaviour
Mobile commerce is one of the fastest-growing global eCommerce dilations today. Most of the shoppers prefer mobile to compare product prices online. Mobile marketing is bringing the whole web commerce activities on a 6-inch screen. Using image recognition tools vital is one of the most trending tools. As per many marketing reports,’ It is projected that the Indian mobile commerce retail market will reach 80% of all retail eCommerce by 2021.
I.e., Wish online marketplace &
Shopee marketplace is the two flawless online platforms to experience it easily.
As per the market research reports, 81% of the worldwide eCommerce activity is followed via online shopping platforms by sellers to buy a product and service.
This means that global eCommerce marketplaces growth is not hidden at all. Sellers from across the world must utilize this opportunity by onboarding on top-notch online selling marketplaces.
To match the changing online shopping trends, store optimization is as important as the overall business goal. Can do the optimization of an eCommerce store efficiently with the help of Magento Extensions.
According to the latest Google web index vis datareportal shows, 45% of people use the voice command to search products/items on the web.
Brizfeel reported, “ 49% of consumers use mobile phones for online shopping.”
Reason 10: Feasibility To Operate & Manage Multiple Online Stores
In terms of best extensions to create a high performing bridge, CedCommerce Magento Extensions are the best-tested ones. It has developed the multitasking Magento Extensions, which offer a broad range of market-oriented, innovative selling features. They are designed enough to reach the global eCommerce heights most efficiently.
More than half of the product search starts on eCommerce marketplaces.
Shoppers prefer to see the marketplace dashboard instead of a random site.
Being an online seller on online marketplace platforms, it helps to build buyer’s trust quickly.
According to the BRP Consulting report,”87% of shoppers/customers want a consistent experience across all online platforms.”
Click here to grab the latest marketplace tools and happenings on your dashboard right now.
Switching from a single channel to multichannel selling would be a smart business decision. These 10 reasons for selling on multichannel will help your store to switch without any ambiguity. The Magento Integration Extensions are efficient and out of the box, solutions to do so hassle-free. I hope the information as mentioned above is the perfect one which you are looking for. Keep selling and keep filling the multichannel shopper’s bag too.
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