Can ecommerce marketplaces enlarge a brandnew?

It is funny how ecommerce brands dread based online marketplaces. While I talk with these brands selling on Amazon, Walmart.com, Sears.com or some of those hundreds of online marketplaces, I often get a look of dread.

Their concerns, typically, are as follows.

  • “I do not have the customer, so I’m helping to construct a competitor’s company.”
  • “When my earnings grow, the market will steal my company.”
  • “It costs more to sell on the marketplaces than on my site.”

I will address all those points in this post. However, it boils down to this: Ecommerce brands should be on as many relevant marketplaces as possible, for these reasons.

Awareness. For many ecommerce brands, building awareness is a costly and difficult task. Awareness-driven advertising is not easy to measure.

But one thing is for certain, the more customers see your brand, the greater the opportunity to sell them.

Amazon represents most of market sales. It’s far and above the biggest. By some estimates, more than 50 percent of all ecommerce transactions will occur on Amazon over the next two decades. Fifty-two percent of product searches currently happen on Amazon — 75 percent when you add eBay and Walmart.com to the mix.

Why not take advantage of the low-cost, low-risk way of creating awareness? Let customers see your brand in as many areas as possible.

Trust. Consumers trust Amazon. When shoppers see a new ecommerce brand, they are often reluctant to buy. They might feel more secure buying with that brand on Amazon instead of the manufacturer’s own website.

If customers try your product through a market and the branding onto your packaging is powerful, those customers will understand how to repurchase straight from you.

But consider, too, average online consumer behaviour. A consumer sees your merchandise on Amazon. Before he buys, he visit your site to obtain additional details. Once he does this, you can retarget him using AdWords, Criteo, AdRoll, or other retargeting platforms. Then you can make him your customer, even though his first buy was on Amazon.

Customer acquisition. When selling on Amazon’s market, you have a selection of satisfaction methods: Fulfillment by Amazon or Fulfilled by Merchant. With most of the other marketplaces, sellers meet their orders. Their costs on such other marketplaces are listing fees and a few on-platform marketing.

During my 20 years of marketing consumer products on the internet, customer acquisition costs have grown. But normally, acquisition costs on the market have averaged roughly one-fifth of additional paid online channels. So I look at the marketplaces as an efficient way to get customers.

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Search engine optimisation. Face it. However hard you try, you likely won’t have the ability to conquer Amazon in search engine rankings. When a client searches for a solution your brand resolves, it is a good idea to see your products appear in several listings on the search results.

Sales. We could all use more earnings. Give your brand every chance to sell more. The marketplaces provide that chance because that’s where shoppers are gravitating. In Q4 of 2016, nearly 70 percent of all ecommerce transactions occurred on Amazon and eBay. That may be powerful for merchants if utilized properly.

And Amazon isn’t going to steal your own brand. At best, Amazon may request that you sell to it straight versus through the market. That’s a business decision you need to make for your own brand. I’ve always stayed away from being a vendor to Amazon or even Walmart. Control over my retail prices and promotion should stay with my brands.

In summary, to create a successful brand, you will need to construct awareness. Consumers purchase from brands they trust. If they’ve not heard of your brand but they expect that the marketplaces you market on, then use this to your advantage. If you do not, your competitors will.

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