Teemu Konttinen

Teemu Konttinen

MA in Design Management. Market focused strategist with bids eye view.

Increase sales by 190%, go multichannel!

You have taken the first step the rapidly growing e-commerce and you have your own online store, working on interesting details such as traffic, conversion and many other concepts with fancy names and abbreviations. Not easy or cheap, but neither is main street rent and staff and the rest of the overheads.

To take full advantage of the potential scope of online trade it makes sense to start looking at expansion to other markets. As much fun as it is, just a hobby it is not. It is growth and the bigger business we are looking for, right? This is when new buzzwords emerge: multichannel sales. In short, it means selling your products not only on your own site but also on marketplaces such as AmazonCdiscount and CDON. According to studies, a normal increase in sales is 190%!

Marketplaces vary with operating models and levels of service to their underlying sellers (actually a legal term, not a fancy word). Most importantly it is relatively easy to tap into their traffic and volumes – at least in theory. When selling in marketplaces, you have to compete for the top spots on their site on their rules. That is instead of buying and fighting for traffic to your own site. And be even more aggressive with the pricing. Not going to lie, price competition is fierce. But, in return, you get full utilization of the marketplace infrastructure, guaranteed traffic, and visibility once you learn how to get it.

Using FBAs, the marketplace fulfilment centres (fancy word for warehouse and delivery services), is a viable option to arranging logistics yourself. Advantages such as faster delivery times, improved visibility in the marketplace, and often reduced other fees. FBAs are certainly something to consider, they do make your life easier, albeit at a cost.

Multichannel sales example: Fulfillment solution from different marketplaces
Fulfillment and warehouse management solutions

How to start a multichannel sales?

Starting a multichannel sales strategy is made relatively easy by the marketplaces. They benefit from wider offering and price competition. But for you to take full advantage of the new environment(s), our suggestion is to get professional help. Not to doubt your abilities and skills, but you will cut months, even years from just your learning curve. We recommend having a talk with Xales.io and commerce8.co for insights and fast market entry.

Another important aspect is that marketplaces are businesses themselves, they will not take liabilities from you. You are still liable for all the same compliances as if you were selling directly from your own warehouse. That means potentially complicated and very expensive VAT compliance – if done wrong. EAS is here to help you remove even those barriers, we will handle VAT and OSS registrations and fully automate your EU VAT compliance and reporting.

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