Why you should be selling on marketplaces like eBay and Amazon

Posted on Posted in Amazon, EBay

“The best time to start selling on Amazon and eBay was 20 years ago.The second best time to start is now.”

We might have remembered that famous quote slightly wrong. Nevertheless, it’s amazing to think that the world’s largest sales channels are now both over 20 years old.

Here are some of the things that we hear from companies who don't think marketplaces are a fit for them:

“Selling on marketplaces devalues our brand.”

“The charges for selling on eBay and Amazon are too high.”

“It’s too difficult to implement a multichannel sales strategy.”

They’re all true for a very small proportion of businesses. In our experience they are thought to be true by many for whom they aren’t.

eBay and Amazon help you advertise to more customers.

Advertising your products more widely is going to make your existing customers feel less special - fact. Advertising your products to a larger volume of your target customers will result in more sales - also a fact. Unless your products are so niche that they sit outside of what the average marketplace customer is happy to pay, you could be selling more by working with marketplaces. A simple test is to have a look at the category of product that you sell. If your prices are well above what’s already advertised, then it may be worth holding off. If not, then you could be selling more than you are at the moment.

Marketplace marketing costs are often good value and can be tested almost risk free.

Writing off 10-15% of an item sale price to commission and sales fees is an unpleasant thought. Masters Games weren't sure that shoppers would pay the prices that they would need to charge to sell on marketplaces. They now do more than half their sales on a variety of different marketplaces. Can you calculate the proportion of an item’s sale price that should be attributed to marketing spend with other means of winning new customers?  We’d hazard a guess that there’s not many retailers for whom this will be much less than the 10-15%. Furthermore, with marketplaces like eBay and Amazon, the vast majority of the charges relate specifically to the sale of an item.

There are a plethora of successful companies that help make multichannel selling easier.

Companies have been incorporated since 2003 with the sole purpose of making it easier for you to manage a multichannel sales strategy. At ChannelUnity, we’re one of them. Whilst ChannelUnity and similar companies may all look the same, there tends to be a niche where each system fits best. At ChannelUnity we fit best when acting as an integration layer between and existing Shopify, Magento, Bigcommerce, WooCommerce or bespoke systems and a customer’s marketplace accounts. We also provide end to end services with Synchromatic. A fully managed multichannel solution which is based on WordPress, WooCommerce and our marketplace integrations.

Finding the right company to make multichannel selling easy for you can be difficult.It’s hard to identify a supplier’s particular niche. At ChannelUnity, we’d rather point you in the direction of a solution that will work best for you than try and make our service work where it doesn’t fit.

Sell smarter with ChannelUnity

Contact us today for a no cost, no obligation, no pressure chat about your integration requirements or multichannel goals and we'll let you know how we can help.