Tips for Adding New Sales Channels to your Ecommerce Business
Creating an additional sales channel for your ecommerce business has many benefits and creates opportunities for growth
- -Exposure to new customers
- -More brand awareness
- -Mitigating the risks of selling on just one channel, such as your website going down or your seller account being shut down
- -More sales overall!
There are additional risks and responsibilities that come with adding a new sales channel to your ecommerce business.
First, the time-investment of creating your new website or seller account. It could take days, even weeks to set up the new selling channel. When estimating the cost, be sure to factor in the cost of your time, new merchants fees, as well as the cost of paying someone to set things up.
Second, you need to think about how you will get the new sales data into QuickBooks. Are you paying someone to hand-enter data for you? Or, do you have a tool such as Connex that will automate data entry for you?
Finally, you have to make additional business decisions. Do you need to hire more staff to manage your additional sales channel? How do you allocate your marketing budget between the two channels? Is each channel bringing enough revenue for your ecommerce business to cover the costs?
Here are some questions to evaluate new potential sales channels:
- -Does your target audience routinely shop in this channel?
- -Can you make a profit given the merchant fees?
- -Can you scale your business with this new sales channel?
- -What are the shipping fees of this new channel?
- -How will you reconcile the sales from all your channels to your accounting software?
We have interviewed 2 of our customers who sell on multiple channels for insights on growing an ecommerce business.
This is an excerpt from a blog article originally published on August 29, 2020 by Dora Farkas. You can read the article it it's entirety by clicking here.