Due to various measures, such as the FBA by Amazon, and the impact of changing purchasing behavior due to the outbreak of the coronavirus, your organization may no longer achieve the turnover you achieved. Rabobank has also indicated that it expects the Dutch economy to shrink by approximately 0.2% in 2020.
In this blog we will give you three tips to help you keep your business running and generate enough turnover during the corona crisis and the possible recession that follows.
Research carried out by consultancy firm McKinsey has shown that organisations that provide lower costs and thus a higher margin before the crisis began could absorb the declining margin during the crisis period. Those organisations could even invest in growth to strengthen their organisation.
As a salesperson on marketplaces, you can do this by purchasing smartly, optimizing your logistics process and minimizing manual labour. Automating various processes within your organisation, such as selling via marketplaces, helps you save time and therefore money.
According to McKinsey, several successful retailers have in the past been able to maintain or increase their market share by increasing their marketing costs. Deploying impactful marketing campaigns to reach customers who have less to spend as a result of the crisis has proven to be a successful strategy.
It is also important to reconsider your sales channels. Do you sell via a physical store, only via a webshop or also via marketplaces? If you have your own webshop, you can generate more traffic to your webshop via channels such as Google Shopping and other affiliate channels via a Feed Manager.
"If you do what you did, you get what you got." It's a well-known saying. In uncertain times, you yourself will have to take the initiative to walk new paths and enter new markets. Or at least to discover them. As an e-commerce entrepreneur, this is the time to rethink your strategy and product range.
In recent years, many Dutch people have gained experience in selling via marketplaces. They have discovered what works and what doesn't. Which type of products are smart to sell and which are not. They now share this knowledge with other entrepreneurs. For example, Bas Urlings has a lot of knowledge about selling via Amazon and you can contact Business Doe Je for information about selling on bol.com.
In order not to have to compete on price, it is important that you offer unique products. Successful entrepreneurs have distinctive character and ensure that consumers want their products and are not satisfied with a substitute that has other characteristics.
Do you want to grow now and in the future by selling via marketplaces? Then download the free white paper 'Growing exponentially on marketplaces', which includes input from entrepreneur Bas Urlings.