Multichannel selling is also known as Omni-channel selling. Multichannel selling is having your products for sale on multiple platforms, including e-commerce platforms, various marketplaces, and offline. Multichannel selling allows sellers to make their products more visible to the customers by selling the same of products on various marketplaces.
The trend is changing in how the retailer sells their product before and now. Through the International convergence of taste of consumers with improvement in technology and efficient logistics brings a lot of bargaining power in hands of the consumer results in shifting their focus from brick and motor retail stores to the multichannel offerings. As more consumers are Rational buyers the shifts could be on the basis of Low price, Creditworthiness, Previous experience, User ratings etc.
So till now, we have discussed what is multichannel selling? Now we’ll see what are the channels that are available for the sellers to choose from and sell their good and products on them. There are benefits and drawbacks of the different e-commerce platforms, marketplaces, and offline selling.
E-commerce platforms are the online selling store equivalent of your “retail shop”. This way seller can create their own Webstore and sell their products on it. The two types of e-commerce platforms are: hosted or self-hosted.
Hosted Ecommerce – This is a software subscription service model where you pay a company to manage the technical side of your e-commerce store. They are cloud-based solutions, where the company manages the server configuration, the bulk of the coding, and security of the site. The user can access their store from a web browser to design, launch, and run their online store. Two hosted e-commerce sites in the spotlight are Shopify and BigCommerce.
Self-hosted Ecommerce – This method requires the entrepreneur and his team to manage the server hosting and code of the website. This allows for more customization, but a knowledge base of coding by you or someone on your team is needed. Two of the main self-hosted e-commerce sites are Magento and WooCommerce.
An online marketplace (or online e-commerce marketplace) is a type of e-commerce site where product or service information is provided by multiple third parties, whereas transactions are processed by the marketplace operator. Online marketplaces are the primary type of multichannel e-commerce and can be described as a “simple and convenient portal” to streamline the production process. In an online marketplace, consumer transactions are processed by the marketplace operator and then delivered and fulfilled by the participating retailers or wholesalers (often called drop shipping).
The top marketplaces for online sellers are
In this technological era as the major chunk of business is taking place through the online channels but the importance of offline channel sales can’t be missed in this. As there is the category of consumers i.e., laggards who do not rely on the technology and prefer buying through offline channels the other could be the conservative rational consumers which always prefer the sense of tangibility i.e., the touch and feel method.
Selling on multiple channels let any seller target more customers and hence increase their customer base.
The main reasons for considering the multichannel selling are:
To Reach New Customers – Consumers have their preferences while wanting to go for any purchase. Some choose the typical retail stores while other choose some e-commerce store or marketplaces. While online purchasing also consumers trust some marketplace more than another. Consumer might go for Amazon or eBay instead of going to a particular e-commerce store. This way selling on multiple platforms allows seller to target and reach new customers.
To Increase Sales – Customer is the central entity for any business, the higher the penetration the higher it will help you generate more revenue. According to the Stitch’s research selling on a branded site plus at least one online marketplace makes 38% more revenue. And retailers who added a second marketplace saw a revenue increase of 120%.
Robust Selling – Multichannel selling helps in keeping the sales flow intact even when the sales from one platform decrease or becomes very low. Diversifying is a key here, diversification among the selling platforms is very critical in the ever-changing world of e-commerce.
So till now we have discussed and learned about Multichannel Selling and its benefits, so why wait now, let’s talk about how you can introduce multichannel selling with your Magento Store. We, Webkul, have introduced add-ons which allow you to connect and manage your Amazon shop, eBay account and Etsy account from your Magento store only. These add-ons provide you a multi-channel selling platform. Managing and fulfilling orders across channels on your own is time-consuming and complex and can add to your operational costs, so using multi-channel selling, you can manage them all from a single platform.
According to a research done by Stitch, “Customers selling on Amazon have more average orders than any other channel or marketplace. And retailers who sell only on Amazon have more than 4x as many orders as retailers who sell through either eBay or a shopping cart.”
So as selling on Amazon could be a great option for any seller, you can use our Amazon Connector for Magento2 which integrates your Magento store with your Amazon Seller account. Using this add-on multiple Amazon accounts can be connected with Magento store and seller can easily manage all their products and orders from one place only.
Also, allowing your customers to connect and shop with you using their smartphones and tablets is the best way to engage your customers. We have made an app builder for Magento2 i.e. Mobikul so that you can provide the application to your customers. With the help of Mobikul, you can create your own Mobile App for both Android and iOS for your Magento2 store.
Multichannel selling lets you reach more customers. The customers who shop on your online store may not live in the same area as your brick-and-mortar. Customers who find your products through a marketplace, like Amazon, might not have ever heard about your online store otherwise. As your customer base grows, so will your revenue.