If you’re trying to increase the profitability of your business and find a solution that will help you maximize your revenue, creating strategic sales channels for ecommerce is an interesting solution that can bring amazing results.
This model consists of sales through third-party partners or resellers who work for your profit. If you want to learn how to implement a sales channel strategy for ecommerce, keep reading the article we prepared for you.
Companies can distribute their goods and services through direct or indirect channels. But let’s see how each of them works:
Direct channel: In an instant channel, consumers buy a product directly from a company. For example, a consumer might purchase a product from a physical storefront or ecommerce website.
Indirect channel: In an indirect channel, consumers buy a product from an intermediary instead of directly from the company that produced it. For example, a consumer might buy a product from another large retailer to whom the company distributes their products.
A comprehensive channel strategy includes all the steps a supplier takes to connect with their target customers through various platforms or channels. The goal of each channel strategy can vary, depending on a company’s primary marketing and sales goals.
For example, a new company may want to create a channel strategy that focuses on building brand awareness, while an established company may focus more on expanding into an untapped market. An organization can adjust its channel strategy depending on the products and services it sells, the size of its target audience, and whether it’s a B2B or B2C business.
How important is it to build a good sales channel strategy?
Good planning to optimize your company’s revenue is an essential step to your brand’s long-term success. That’s why it’s important to build a good strategy, increasing your company’s reach and profits. Therefore, if you want to get good returns, you should consider this possibility.
How to Create a Sales Channel Strategy for Ecommerce?
To help you understand how to create a sales channel strategy for eCommerce, here are some important steps to direct your efforts and establish this system in your company.
- Discover the main channels
Knowing the options for conducting negotiations is the first step in building an ecommerce sales strategy. This way, you understand the possibilities and use the best means to grow your business.
The internet currently has a lot of market power and many recent alternatives can be incorporated into your strategy. Some of the main channels that have appeared recently and are highly sought after by consumers are shopping, social networks (Instagram, Facebook, TikTok), email marketing, and more. Knowing that these work, you are already ahead of the competition.
- Find out what stage you’re at
It’s important to understand your company’s maturity to determine the best alternatives you can use. Early-stage businesses can leverage partners to help grow the company without hiring and training new employees.
- Choose good partners and expert professionals
Choosing partners is another very important step towards success within your sales channel strategy. These can be resellers, partners, distributors and suppliers who help manage and distribute the products. Having professionals who understand e-commerce makes it easier for your company to achieve good results.
- Measure your progress
Finally, develop a set of key performance indicators (KPIs) to measure the success of each distribution channel, which can help you determine which channels are performing best. Some indicators, then, include: distribution cost per unit of shipment, average sales order value, sales growth, total number of orders, on-time shipping rate, and order accuracy rate.
How do you know a sales channel works?
You’ll see a significant change in your site’s sales and traffic. Customer buying behavior will change positively and your business sales will increase. The analytics available to you will illustrate a clear and optimal path from the sales channel’s first contact with a potential customer to the first purchase from your business. A truly successful sales channel is also sure to bring in repeat customers.
There are many techniques you can apply to increase the growth and revenue of your e-shop, but an important strategy is to know how to use your sales channel effectively. The term “sales channel” may seem new to you, but, as you’ve seen, it’s just the platform through which you can promote your business using the sales funnel, which depicts a consumer’s “journey”.
It’s obvious, then, how having well-defined strategic sales channels for ecommerce can make a difference to your business.