Nate Burke, CEO and Founder of Diginius, a UK provider of proprietary software for digital marketing and ecommerce solutions, shares seven ways ecommerce businesses can leverage tools and platforms to quickly expand their marketplaces to maximise sales opportunities.
By now, the rise of ecommerce due to shifting consumer habits in recent months is no secret to anyone. But as an increasing number of businesses experience rapid growth and traffic on the digital channel, scaling-up practices to keep up with demand is key.
1. Raise awareness
With an increasing number of retailers joining or expanding into online marketplaces, businesses can expect to face greater competition. With this in mind, online advertising should form part of any brand’s digital marketing strategy.
Pay per click (PPC) advertising in particular is a useful way to raise brand awareness and drive traffic, conversions and sales regardless of whether the brand has a new or an established online presence.
But the advertising mediums you choose to use must align with the business’s commercial objectives and operational capabilities in order to generate a return on investment. For instance, ads should be placed in channels that will reach the target audience, whether that be Google search results or in the display network, for example, as well as in languages the website supports and the company couriers can fulfil to.
And with an effective management and monitoring tool, you will be able to maximise the performance of your digital advertising activity to drive the best sales results.
Volume management is essential to any business looking to expand its marketplace operations, but it can be difficult to identify early on when ecommerce integration is needed. However, issues such as keeping up with sales levels, inventory counts or even hours upon hours spent on manual data shifting should start ringing alarm bells for any business owner.
And by integrating your website to your other online sales channels and back-end systems, you will start to gain a number of noticeable benefits. Reduction in human errors, accurate inventory management and increased sales channels, without losing operational efficiency are just some of the topline benefits business owners will begin to experience.
In fact, without integrating stock and price data, you will not be able to expand to multiple marketplaces, as those such as Amazon require very high levels of accuracy which without, your account will be suspended. With orders coming in from multiple sales channels, it is generally not feasible to keep accurate counts in the different channels without automation.
As your ecommerce grows, there will no doubt become a time when current systems and processes become highly inefficient to your operations. Manual, repetitive tasks become laborious and can lead to disaster with overworked and unenthused employees tapping away at keys when they’d rather be strategising or working new leads.
Automation can churn things like inventory management, lead generation and strategy and decision making into self-fulfilling automated tasks. As you automate basic items like price updates, order inputting, returns and stock updates, you can then move into the second phase - automation of updated advertising algorithms based on margins, stock levels, competitor pricing and related factors, all of which drive efficiency and a competitive edge. Invoicing and financial data can be moved paperless and customer service processes can be automated or streamlined in a variety of ways.
The key in the automation process, is to start with a solid foundation of your website and finance system to fully automate order flows and marketing information. Following this, you can then continue a relentless cycle of manual testing, which will determine what works and what is truly repetitive on a daily or hourly basis, rather than trying to automate tasks that you may only perform from time to time.
4. Own website/marketplaces?
While some businesses only focus on their website and others sell solely on Amazon/Ebay, a robust approach across the major channels that customers use tends to drive more value and be a more sustainable approach for any business.
For example, if a company only sells in the marketplaces, it is common for Amazon to suspend an account for not hitting performance metrics, which causes a major disruption in cash flow and sales. Additionally, the marketplaces tend to restrict access to the customer, so it is not possible to market directly to your customers.
Consumers that come and purchase from your website develop a relationship with your brand, are easier to communicate with in the sales and delivery process, and you can continue to market with email and other methods for a higher lifetime value per customer. Additionally, the larger buyers will tend to prefer to deal with you directly rather than through a marketplace.
However, particularly as you expand out of your home country, digital marketing can be costly to run and cultural differences, languages and currencies difficult to manage at small scales.
Therefore a blended approach of digital marketing to your website and marketplace expansion tends to reach more customers efficiently and faster, which you can adjust as you grow and master different areas of digital sales.
5. Multi-channel approach
One of the best ways to scale-up a retail business is to adopt a multi-channel approach. This may include a mix of various ecommerce sales channels as well as a physical in-store offering, for example.
However, the channels you choose to use must align with the business’s ethos and goals in order for them to be effective in maximising sales. If not, they could end up creating a greater cost than return.
For instance, a downloadable software provider may see more value in investing in online routes than in a bricks and mortar store offering. In this case, the multi-channel mix may include different marketplaces or use of various marketing and communications methods instead.
But either way, a multi-channel approach maximises the amount of touchpoints between a brand and customer and in doing so, the likelihood of the brand sticking in the mind of the consumer is increased.
6. Streamlined management processes
When expanding into different marketplaces, a common problem businesses encounter is effectively managing the ramped-up level of activity. But with an insights platform, businesses can manage and monitor their digital activity across various channels on a single centralised dashboard, as well as automatically update prices, stock levels and order management.
This provides a more transparent and holistic view of performance, with data and insights that can be used for reporting and informing future decisions.
Not only does this create greater efficiency, but it also reduces a lot of the admin burden placed on employees, allowing them to focus on other business-critical tasks.
7. Customer service
Due to the distance and physical detachment between customers and brands in the online realm, customer service is often overlooked. But, providing high quality customer support should in fact, be a core business activity, especially as the brand and consequently, the customer base, grow.
In doing this, you will keep both new and existing customers satisfied. This can encourage loyalty, repeat purchases and positive word of mouth, which can then be spread through customers’ personal social media networks to generate greater traffic and sales for the business.
So, remote customer service providers must be responsive, helpful and well-informed in order to have the desired effect. And to make their jobs that much easier, CRM tools can equip providers with the data and insights required to offer an efficient and effective service every time.