Relying solely on Amazon puts you at the mercy of their rules and success. If there are drastic changes to seller rules or something goes wrong with Amazon, you could lose your online presence and income. Diversifying your ecommerce business ensures that your products are always available to current and future customers.
In addition to better business security, it is also necessary due to customer behavior. Online shoppers want convenience, quality products, and low prices. While they may start with Amazon first, many shoppers will search for the best deals they can, leading them to new marketplaces or webstores.
Rather than sticking with just Amazon, it’s time for sellers to explore other sales channels to see which one(s) can produce the most favorable results.
Sales Channels to Explore to Diversify Your Amazon Business
It may seem a bit overwhelming to start selling on new channels. But, once you get going, you’ll find that the extra work is worth it. We’ve put together a list of sales channels to explore.
Independent Online Stores
It’s true that Amazon accounts for at least 43% of online sales in the U.S. and is expected to hit the 50% mark by 2021. But, it is also true that over 70% of 300 really successful ecommerce store owners sited their own website as their best performing sales channel – over Amazon, according to this survey.
Having an online store means you have control of the customer experience, branding, and website design. If you are already successful on Amazon, just imagine what you’ll be able to do with an independent online store.
If you want to start your own online store, it’s going to take some research. Check out the different shopping cart platforms offered, what they cost, and their capabilities. Here are some to consider:
- WordPress – A comprehensive website building platform, with various theme designs and options for plugins like WooCommerce.
- Shopify – A platform that allows sellers to build their own store within the platform. It offers a wide assortment of tools and features.
- Magento – An open-source platform that provides online merchants with a flexible shopping cart system, as well as control over the look, content, and functionality of their online store.
- BigCommerce – A platform that allows sellers to create an engaging online store, offering built-in SEO and other tools that allow for scalability.
Other Online Marketplaces
Ecommerce shoppers often go to online marketplaces as a starting point when looking for a particular product. Online marketplaces tend to capture an audience who are ready to buy. The sheer volume of traffic an online marketplace generates for sellers is hard to beat.
The biggest drawback for sellers with online marketplaces is the competition. There are likely numerous sellers offering the same products as you. That means you have to keep prices low to stay competitive. The good news about marketplace shoppers is that while they look for the best prices, they also tend to spend more overall.
Here are a few online marketplaces to consider:
- eBay – Similar to Amazon, you can buy and sell new and used items.
- Walmart – Sell your products alongside the retail giant’s online marketplace.
- Jet – Also similar to Amazon, but with dynamic pricing and appeals to bulk orders and wholesale shopping.
- Etsy – This marketplace is for handmade, creative products.
- NewEgg – This online marketplace is perfect for those who sell electronics like computers, smartphones, etc.
- Rakuten – Offers a wide variety of products including home goods, apparel, electronics, and more.
Retail or Pop-Up Store
Another way to diversify your Amazon business is to open a brick-and-mortar store. You can be even more trendy and start a pop-up store, a specialty store that opens for a short period of time and can be mobile.
A pop-up store can be a profitable way to sell your products without having to pay a lot for rent. Plus, it will give you an idea of how your products would sell should you decide to take the next step and open a traditional brick-and-mortar storefront in the future.
It’s Time to Diversify
Just remember that Amazon, as great as it is, shouldn’t be your only sales channel. Not only is it risky, but also limiting. When you move towards a multichannel venture, you will expose your products to different audiences which means more opportunities for sales and business growth.