When are you truly ready to start selling your products via marketplaces? Just having an interesting product range does not suffice! We have outlined five pointers that indicate you are ready for this next big step in your entrepreneurial ventures!
You have a great range of products which are in high demand, you know everything about and you are selling for the right price. Obvious right? We often hear “I want to start selling via Marketplaces (e.g. Amazon), but need to find the right products to sell”. If you really want to make the difference as retailer, you have to make sure you know everything there is to know about the products you sell. You are looking for a saleschannel for your products, not the other way around, searching products for your saleschannel. However, keep in mind that expanding your productrange based on its popularity on a certain marketplace is the clever thing to do!
You have calculated the prices to which the articles must be sold at to make profit. Another no-brainer? It happens more often than not that one makes a lot of profit with the sales via the marketplace at first, but is spooked by the commission the marketplaces charge by the end of the quarter. Whoops! Did not think of the shipping costs and the commissions when determining the price for your products! Avoid financial setbacks, do the math and don’t get caught up in the aggressive pricing strategies of your competitors. Unless you receive a significant discount from your supplier, to which it is possible to sell the products with minimal profit margin. But still remain cautious.
You have set up a scalable application landscape designed for growth. People often start out with selling their products manually via the marketplaces. This does not need to be a problem, as long as you keep in mind the various proceedings required with manual sales. When sales increase, it is of the utmost importance to have a scalable application landscape to prevent you from only being occupied with the operational processes surrounding the sales of your products instead of being busy with the actual sales.
You have discussed internally the KPI’s of the marketplaces with your coworkers and know that you can live up to them. The marketplaces wield strict policies in terms of in the kind of agreements you make with customers. When you promise a 24h delivery, it is expected that the product is delivered within the set time frame. The same goes for customer service, Amazon for instance demands that every question is answered in the right language of your customer within 24 hours. Even over the weekends! When neglected, you could risk getting your sales account blocked by Amazon.
Last, but certainly not least. You acknowledge the enormous potential of the marketplaces and are willing to do the maximum amount of effort to achieve the maximum amount of results. Selling via marketplaces can be a love-hate relationship, but if you are looking to make the most out of it there has to be more love than hate! Explore the opportunities, actively participate in the pilots that are being suggested to you and make sure you have a solid relationship with your accountmanager. Your marketplace account manager is your portal to other promotional- and growth stimulating programs.
Are you ready to sell via marketplaces?
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