No items found.
October 28, 2024

The why, how, and what of scaling up: a multi-channel strategy for ecommerce success

The why, how, and what of scaling up: a multi-channel strategy for ecommerce success

For businesses looking to grow, selling across multiple channels is a powerful strategy. To get insights on how brands can scale up effectively, we interviewed Raul Peña, Senior Marketplace Partner Manager at ChannelEngine. As he points out, “Selling across multiple channels today isn’t just about expanding; it’s about visibility, diversification, and strategically positioning your brand where your audience is.”

This blog post will break down the key aspects of multi-channel selling using Raul's expert advice, focusing on the why, how, and what of scaling up in ecommerce. Whether you’re just beginning to explore new marketplaces or planning an international expansion, this guide will provide you with practical tips to grow your business successfully.

Why multi-channel selling is essential for ecommerce growth

We asked Raul why selling across multiple channels is so crucial for ecommerce businesses today. His response highlighted several key advantages that make multi-channel strategies a must for any brand looking to grow:

Expansion and visibility

Selling on multiple platforms lets brands tap into new and diverse audiences, often with just a few clicks. As Raul explains, “You want to tap into different target groups, whether new or existing, in various markets.” Established marketplaces often have a loyal customer base, making it easier to introduce your brand to potential buyers who might not shop elsewhere. According to him, “If your brand appears on a marketplace where consumers are already shopping, they’re more likely to buy from you.”

Niche opportunities

Expanding isn’t just about getting more exposure; it’s about being strategic with your presence. Raul highlights the value of using specialized platforms: “Some marketplaces are designed specifically for niche audiences or off-season products. They allow brands to position themselves where the right customers are already searching.” Invite-only or membership-based marketplaces offer an added layer of exclusivity, helping brands protect their image. “These platforms are addressed to savvy consumers who are looking for specific products without wanting them widely available at discount prices,” Raul adds. These consumers prefer to shop where certain products are not heavily discounted or widely accessible. Brands that use these platforms can maintain a premium image, keeping their products from being perceived as cheap or overly available.

Reducing risk

Staying dependent on a single sales channel is a risk for any brand. Diversifying across multiple platforms mitigates that risk, ensuring that a dip in one channel doesn’t disrupt your business. “Not putting all your efforts into one marketplace reduces dependency and spreads the risk,” Raul explains. This involves choosing both large, well-known marketplaces and smaller, niche ones, each with their own advantages and audiences.

Enhanced channel offerings

Different platforms come with unique features that can benefit your brand. Some offer specialized fulfillment services, streamlined shopping experiences, and dedicated brand pages that enhance visibility. “We see marketplaces putting more effort into offering solutions for clients, from fulfillment capabilities to promoting brand pages with a cleaner, more focused shopping experience,” says Raul. This allows brands to choose platforms that best fit their needs, whether it’s a seamless fulfillment process or a visually appealing brand presence.

How to manage the challenges of multi-channel selling

Managing sales across multiple channels isn’t without its challenges. We asked Raul to shed light on the common obstacles businesses face and how they can effectively address them. His advice centers around having the right tools and strategies to stay efficient and competitive:

Centralized content management

One of the biggest challenges is keeping product data consistent and high-quality across various platforms. “If you’re opening multiple marketplaces, the effort to manage and maintain your content multiplies exponentially,” he says. A centralized system for content management is crucial to avoid data discrepancies and maintain efficiency.

In addition, international markets demand localized content, making translation tools essential. Raul stresses the importance of language localization, noting, “You need the tools to translate listings and content for local markets, making sure that your product information is relevant and accurate.” A centralized solution makes this process seamless, ensuring that brands can handle the complexities of international selling.

Performance monitoring

To stay ahead, tracking performance and making adjustments based on competitors' actions is key. “When opening new markets, you have to keep track of how you’re performing against local competitors, Raul advises. This involves monitoring how pricing changes, promotions, and seasonal campaigns impact your position in the marketplace.

Centralized tools can significantly ease the burden of managing logistics, inventory, and pricing across platforms. “A centralized solution helps you track and respond quickly to factors like price sensitivity, stock availability, and campaign performance,” he says. This way, businesses can be agile and adapt their strategies in real time.

Navigating marketplace restrictions

Different marketplaces come with their own rules and regulations, from VAT requirements to local warehouse needs. Raul highlights that “certain platforms require sellers to have a local entity or meet specific legal requirements, which can be a challenge if you’re expanding internationally.” Understanding the scope and limitations of each marketplace is essential for aligning them with your business goals.

Some platforms even provide assistance for navigating these challenges. “There are marketplaces that help sellers with local requirements, offering guidance on VAT, warehouse setup, and local partnerships,” explains Raul. Brands need to carefully research and choose platforms that align with their growth strategy while also considering the local obligations they may need to meet.

What to consider when choosing the right channels

Selecting the right sales channels can make or break your multi-channel strategy. To guide brands on what to consider, we asked him about the key factors for choosing the most suitable platforms. His insights reveal what businesses should prioritize to ensure successful scaling:

Relevance and reach

The first step is understanding the local landscape and identifying the most influential players. “Look at the biggest local players in the market and their market share,” Raul advises. Choosing platforms with a strong local presence can significantly boost your visibility and brand credibility.

Businesses must also decide between broad, horizontal platforms that cater to a wide audience and niche-focused marketplaces. “A horizontal marketplace might have a bigger audience, but niche platforms often attract more engaged and knowledgeable consumers,” explains Raul. Selecting the right marketplace depends on your target audience and the kind of product you’re offering.

International expansion potential

If international growth is part of your strategy, you’ll need platforms that can support your expansion abroad. “Think about marketplaces that have a local footprint in the markets you want to target,” says Raul. This makes it easier to scale internationally without starting from scratch in unfamiliar territories.

Global marketplaces often offer a consistent framework across countries, but Raul emphasizes the importance of exploring regional options. “Your local hero might already have a presence in other markets you want to expand into,” he notes. This familiarity can smooth the transition and strengthen your brand’s presence abroad.

Partnership potential

Choosing the right platforms is not just about sales, but also finding a partner that can contribute to your growth. “Some marketplaces are willing to invest in partnerships, offering marketing tools, logistics support, or even legal assistance,” he explains. This can be a game-changer, especially for brands new to international selling.

Understanding the long-term benefits of a marketplace partnership is crucial. Raul highlights that “marketplaces today are becoming more like growth partners, helping brands navigate local requirements and expanding their reach.” Selecting platforms that offer extended support can provide a significant advantage in both local and global markets.

Explore centralized solutions to simplify multi-channel management

“Having centralized solutions is key to scaling successfully,” Raul reminds us. This foresight allows businesses to manage content efficiently, monitor performance, and navigate the complexities of local and international markets with ease. 

If you're looking to start a multi-channel strategy or to simplify your current multi-channel management, centralized tools can make a big difference. They play a crucial role in scaling up by allowing you to manage everything from product information to orders in one place. Tools like KatanaPIM help ensure that your product data is consistent and accurate across all platforms, a key step in avoiding errors as you expand into new markets. A marketplace integrator like ChannelEngine connects you with global marketplaces and centralizes key elements like pricing, stock levels, and product listings, giving you the flexibility to adjust quickly and efficiently. These tools can reduce the complexity of managing multiple marketplaces, letting you focus more on growing your business.

If you want to dive deeper into scaling strategies, check out our related content:

  • Read more about how a Product Information Management (PIM) system can drive growth by streamlining your product data.

Discover how Marketplace Integration Software can help you overcome common barriers to expansion, making multi-channel management more manageable.

Recommended Readings

The EU GPSR is here: ensure compliance with the right tools
November 21, 2024

Learn how the EU's new General Product Safety Regulation (GPSR) affects your business and how a PIM system can simplify compliance. Ensure product safety, traceability, and streamlined data management with ease.

Scaling up: how PIM streamlines product data for multi-channel selling
October 24, 2024

Learn how a PIM system can simplify multi-channel selling by centralizing product data, optimizing specifications, managing images, and ensuring seamless data distribution. Discover how brands like Ridam Online succeeded in scaling up across platforms with the right PIM tool.

Explore more

The why, how, and what of scaling up: a multi-channel strategy for ecommerce success

Get your product information together and scale your business

Try KatanaPIM

Get your product information together and scale your business

Try KatanaPIM

Get your product information together and scale your business

Get KatanaPIM to manage and distribute your product data without the hassle.

Explore firsthand the features of our platform

Start working with PIM for free