Choosing a Multi Channel eCommerce distribution channel for your brick and mortar business can indeed be tricky. It might be a turning point for you if you’re serious about escalating your business to newer heights. As pivotal as this decision may seem for your business, knowing about all the distribution channels is extremely important for your business. You need to determine what platform is going to handle your products and how are they delivered.
There are few factors that you must keep in mind while making this important decision. Multi Channel eCommerce distribution channel can play a lot of role in determining the sales and marketing of your product.
1) Analyze Your Product
Firstly you need to consider the genre and type of product you are going to market. Your product’s nature and its need in the market plays a very important role in determining what kind of platform will be suitable for it and whether or not it would be welcomed in the market. Figure out the type of your product and find out how much life would it have. If it’s a product which is perishable, then you would need to have a system which delivers it in an unhindered and smooth manner to the consumers. For example, if you are the owner of a food company, then you must make sure that a reliable and fast distribution method is used for delivering the products to the consumers.
2) Market Niche
Second factor which plays an essential role in Multi Channel eCommerce you’re your brick and mortar business is the market. Your market niche can help you find out the potential of your business as well as it will help you know the right multi channel eCommerce distribution channel suitable for you. For example, in case your market is consumers, the most prevalent and essential method of distribution is through the retailers. But in case of the business, some other suitable approach might be needed.
3) Middlemen in the Business
Another factor which can help you find out the suitable Multi Channel eCommerce distribution platform is the need of Middlemen for your business. If you are short on time and can’t invest a lot of time in your brick and mortar business, then you can employ a middleman for distribution of products efficiently and effectively.
After you have done this detailed research, you can now focus on marketing your product. The strategy of marketing comes after you’ve made the decision of choosing the distribution channel for your business. The marketing strategy will help you reach your desired distribution channel in an easier way. Identifying the right and suitable distribution channel is essential for the growth of your business. Most of the wholesale business depends on the method or route you take to reach your potential customers. The right multi channel eCommerce distribution channel can make your business excel.
Following points should be kept in mind while looking for the distribution channel for your business:
4) Competitors
You need to keep an eye on your competitors. The ways being adopted by your competitors should be analyzed by you deeply. Try to see why they are using a certain distribution channel and what advantage this channel has over other channels. Your research can prove to be helpful for your business. It is also a good option to hunt for a distribution channel that is not so common and it might have been overlooked by your opponents. This can give you an edge over your competitors and it might be of great advantage of it. For example, if big box retailers are being used by your competitor then you might consider taking advantage of direct sales through the internet. This can give your business the required push it might need at the moment.
5) Do the Math
Before stepping into this, you must do the calculations. Try to do the risk assessment before making any move. You should calculate the cost and profit out of the distribution channel. It might seem an arduous task and it might even be a bit time consuming, but you won’t regret it later. Decide on a suitable method of distribution for your brick and mortar business and try to all the supporting systems to go with it. You must make an effort to align your company in a certain direction. Your goals should be well-defined and you must not be heading haphazardly into a direction. Mindful decisions always lead to fruitful results.
Once you have chosen a certain multi channel eCommerce distribution channel, it might be difficult to take a U-turn from there. Build the necessary infrastructure to support your chosen distribution channel. In some cases, this might be expensive and time taking. Therefore, it’s always advised to assess the costs and benefits before investing any of your resources to it.
6) Score the Options
You should make a list of all the different available methods which can be used as multi channel eCommerce distribution platforms. After making a list of all the available options, give each option a score based on different criterions. This will help you rank them and in the end, you will be left with a list containing the distribution channels with order of preference. This will help you pursue that one distribution channel on the top of the list and can even help you consider the second-best channel/channels for future. As you earn more capital, you can always use these additional channels for your business. As you move ahead, you may even find that some methods are synergistic to each other and can be linked together.
Therefore, we can conclude that the main idea is to carefully analyze your options rather than hurrying into a decision. You must always question the reason behind accepting a specific multi channel ecommerce distribution platform so you know all its pros and cons. It’s better to invest your time in the research, rather than lamenting and regretting later for your bad decisions.