With the enormous growth of online retail in recent years, it’s now becoming increasingly important to make use of multiple channels when bringing your products to a mass market. More channels = more sales. Through your online store you can target potential customers via online marketing methods like SEO, PPC and social media, but add to this larger market channels such as eBay and Amazon and you will massively increase your potential for sales.
Whilst commercially you will reap the benefits of this larger product reach, increasing your sales channels will also present issues with stock management, pricing and other inventory management aspects that you’ll need to deal with. This is where a Magento site becomes really useful. With Magento, you’ll have the ability to control multiple sales channels through your ecommerce store. Building a ‘channel hub’ in Magento can provide a vast array of benefits such as:
- The ability to track stock on third party channels
- The ability to edit products on all channels
- The ability to save customer data
- Track all sales from all channels
- Manage stats and set-up filters to identify your most profitable channels
Avoid an administrative nightmare
If the channels are not correctly integrated, you may end up with more work on your hands than you envisaged. So, it is important when performing a set-up that all the data is called from one source and all customer and order information is saved correctly to the relevant areas.
Every sale has a charge.
Payment for multichannel services is usually dealt with by the individual third party providers. Each one has their own set of tariffs and transactional scrapes (where a small amount of money is scraped from the order to pay the selling fees). For example, the graphic below from eBay explains how their fees are calculated:
When taking selling fees into consideration, you may find yourself running out of what is a very small margin. Therefore you need to consider the following:
- Product cost
- Shipping cost
- Selling fee
Once these are taken into account, you should be able to calculate a product price that is not only competitive, but that also ensures the extra “selling-fee” is taken into consideration.
All ecommerce providers should consider using multichannel selling to maximise profit from as wide a demographic as possible. It’s a great way to increase your revenue, which can then be reinvested back into your platform. Fluid have vast experience with multichannel retailing and are partnered with various third party software providers to ensure you have a multichannel website fit for purpose.