From Amazon to a multichannel brand
Amazon is by far the leading marketplace in Europe, in Germany Amazon accounts for about 20% of e-commerce sales according to the latest studies, a dominant figure. So why think about other marketplaces?
Although Amazon leads in Germany, there are strong differences in Europe, for example Allegro dominates in Poland, or bol.com in the Netherlands. Specialized marketplaces with high sales volumes also make sense at the category level, for example MediaMarktSaturn Marketplace for electronics, Douglas in beauty, ManoMano in DIY, home24 and OTTO in home & living, or Zalandoand ABOUT YOU in fashion, among others. We have various customers for whom Amazon does not account for the majority of the sales volume on marketplaces.
So how do you tap into this market?
First, it must be clear which marketplace fits one’s own product portfolio and desired goals. The options for researching sales potential are more difficult outside of Amazon, but not impossible. Search volume and the right target group for the product are important.
Secondly, the connection must be right. Multiple marketplaces are best managed not individually, but with converging integrations via connectortools like ChannelEngine, Channable, EffectConnect, Tradebyte or others that have the required marketplaces in their portfolio. To that end, many marketplaces are not completely open either, but have selection processes that must be gone through.
Third, logistics is an issue. Not every marketplace offers its own logistics processing, but again, there are logistics partners that specialize in marketplaces and provide integrations when their own logistics are not possible or desired.
In the end, when it comes to the actual management of marketplaces, set-it-and-forget-it is not possible. Each marketplace needs a scaling strategy and must be actively managed or the desired success will not occur. Fortunately, there are many options here that can be used to force growth.
Does it make sense to sell on different marketplaces at the same time?
Marketplaces offer a good alternative or supplement to your own online store. Of course, selling on marketplaces always involves additional effort and costs, but they also offer some advantages. According to Shopify, businesses can increase their revenue by 190% by making sales through more than one channel. Moreover, the reach of potential customers is increased at the same time. At the same time, the number of e-commerce sales through online marketplaces is expected to continue to grow in the coming years. Another advantage of a multichannel strategy is that risks are spread further, so that if problems arise on one marketplace, there are still other alternatives available.
Of course, it is best to select marketplaces that are also relevant to the product being sold. Vertical marketplaces, which specialize primarily in one product category, should be chosen carefully. Horizontal marketplaces that have no specialization, such as Amazon, are more generic for customers.
There are many advantages to driving a multichannel strategy. With our four tips, this is quite easy to do. Of course, it is up to each company to make this decision, but we are convinced that it makes sense for many companies to not only focus on Amazon or their own online store, but also to reach new target groups on other marketplaces.
Do you need more support to become a cross-market brand? We are happy to help you! Simply arrange a non-binding consultation and ask us your questions!
Need help selling successfully as a cross-market brand?
Patrick is our Head of Retail Media. With many years of experience in selling on marketplaces, he advises you on marketing and content. He also supports you with the right marketplace setup to accelerate the growth of your business. Contact him without obligation by mail or by phone at +49 89 215 276 60.