Multi-channel strategies for selling online

May 8, 2008

A report by JupiterResearch was released today which examines the issues driving multi-channel online selling. The report was commissioned by ChannelAdvisor. The highlight from the executive summary shows that 75% of online retailers surveyed attributed their online multi-channel strategy as a key contributing factor to their success.

Retailers claim that expansion of online channels are meeting their expectations for increased sales and new customer acquisitions. However retailers using multiple channels should be wary of the strain that running multiple channels places on the business processes.

This is something all those who started out selling on eBay should consider - whilst adding their own website, Amazon, Play.com and perhaps Google adwords and Comparison shopping might sound attractive, over-reaching and spreading your business too thinly across multiple channels may be detrimental to growth if introduced too early.

In order to mitigate the complexity of multiple online channel retailing, 55% of retailers outsource some aspects of the business operations. Almost 70% of those outsourcing attribute increased sales (and 65% increased customer acquisition) directly to their outsourced partners.

One of the most interesting parts of the report showed the percentage of total online sales attributed to the different online sources used.

Direct visits to websites, natural search and paid listings contributed almost three quarters of all online sales. Email marketing shouldn’t be underestimated, contributing 13% of online sales. It’s perhaps one of the lowest cost to implement (especially with shops email marketing tools on eBay). Comparison shopping in contrast was only thought to contribute 3% of sales but is used by 34% of retailers. This is one area the report falls down as it fails to explain why so many retailers use a channel for which so few sales are attributed.
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Written by Chris Dawson · Filed Under Featured, Selling Tips | 14 Comments 

Google Product: 10x increase predicted

April 22, 2008

One of the main themes running through the Catalyst conference is Google Product Search. Scot Wingo introduced the subject when talking about developments in the US.

Comparison shopping attracts more buyers in the UK than almost any other territory - 50% of UK buyers visit comparison shopping engines, and although they only account for some 13% of all sales it’s suspected that they influence and assist as many as 75% of all sales even though a search engine may get credit for the final click.

Google Product is in the top five of comparison search engines and it’s free. Any merchant, or eBay seller can upload their inventory to Google.

Scot stated that when Google changed page layout recently to include “shopping” instead of “video” there was a ten fold increase in useage in the US. It’s predicted that a increase will occur in the UK later this year.

Sellers who feed their products to Google Product will be in prime position when the expected change occurs.

Written by Chris Dawson · Filed Under Featured | 1 Comment 



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