Why diversify an e-commerce business?

The Internet provides ample ways to grow your e-commerce business. The world of e-commerce has given people from a wide range of backgrounds the opportunity to earn a living without having to establish or maintain a brick and mortar location. This means people are free to make money selling anything they desire, from reselling known brands to finding a market for their own handcrafted products. 

Basically, all you have to do is define your product, create a listing and start selling. But if you are looking to make a real business out of your e-commerce trade, you need to do more than sell in one place. 

Listing on a marketplace like Amazon is a good start. With 300 million monthly users, it just makes sense. If you are putting all of your business into that one marketplace, and not diversifying your sales channels, you are missing opportunities to improve the security, sustainability, and longevity of your business. 

Why diversify?

When you are selling in only one place, it puts a lot of strain and pressure on that place to perform. If one single thing goes wrong, it could tank your entire revenue stream. Think about it, what if the site goes down or your account gets suspended? Amazon has very strict seller policies and if they feel you are in violation of those terms, they can suspend your account. They also have been known to restrict the sale of certain products without any notice. If you are a third party seller, moving known brands, you could be subject to these restrictions. Amazon often works closely with these companies and if they do not want their products being sold by a third party, you are out of luck. 

The more channels you have, the wider your potential audience. Amazon encompasses a large portion of the market but it does not cover ALL of the market. When you use other channels, you cannot only reach a larger audience, you can target your listing and products to specific types of buyers, increasing the likelihood that you will make a sale in the first place! 

How to diversify

Begin by making sure you are firmly established in the large e-commerce spaces. This means listing on big sellers beyond Amazon. eBay, for example is still a major space for online sales. Amazon and eBay both are well established, trusted, marketplaces where customers feel confident enough to spend their money. While these are the big two, they are not the only ones out there. 

Walmart has been edging in on the e-commerce space and opening their channel to a greater number of sellers. Like Amazon and eBay, Walmart is a company buyers are likely to trust. Establishing a listing with them will help you reach a broad audience and solidify your sales. 

It is also worth exploring niche markets. Depending on the type of product you sell, or the way you are selling it, there may be a marketplace that caters to your ideal audience. If you are a wholesaler, Jet may be the place for you. If your business is based on one-of-a-kind, handmade, items, give Etsy a try. Spaces like NewEgg cater to electronics while ShopBop is for designer women’s fashion. 

For every product there is a niche. For every niche there is a market. When you list your product in some of these marketplaces, you have the opportunity to tailor your listing to that particular audience. Do your research and use language that is appropriate for each marketplace’s persona. Think about any questions a buyer may have about your product and answer it in the listing. The more you can speak to, and connect with, potential buyers, the more likely you are to turn them into actual buyers.

And remember, just because a listing works in one place, does not mean it will work in another. Change your listing for each channel. This will help you connect more directly with their users and boost your bottom line. It is also useful for your SEO. Using different language in your product listings will increase the chances of your listings appearing in a search. Search engines return the most popular page first, which is usually Amazon, and will suppress the other results. If you have multiple listings, saying slightly different things, than it is more likely those pages will show up in the search results. 

Another great way to solidify your sales is to create your own store. When you list in online marketplaces, you have to follow their rules. With your own store, you are free to do whatever you would like, set the prices where your want them to be, and create the experience you would like your visitors to have. You are in control. 

With this increased control, comes increased responsibility. You will have to pay close attention to your supply chain and your distribution methods. If something goes wrong, there is no one else to blame. But these issues are manageable and are nothing when you think about the opportunities your own e-commerce store can create. Not only can you make more money, you can better define your brand and your target market. 

Once you have established your store, you can use your social media channelsto drum up sales. You can create ads to target your current customers or go after new ones and grow you base. There are many directions you could take and all of them are good. 

There are many tools available that make building a store relatively easy. A platform like Shopify allows you to create your store within their existing framework while offering enough customization that the store is, and always will be, your vision. 

Just make sure people are able to find your store. When you are selling in an online marketplace, buyers come to you. You need to stand out from the crowd, yes, but you are offering your product in a place where people are already looking to spend their money. You do not have the luxury when selling from your own store. You need to direct traffic to your pages. As mentioned, social media is a great way to do this but you should also be paying attention to your keywords and your content. Use keywords in your product titles and descriptions. The more content you have that uses these keywords, the better. Consider creating a blog. Blogs are a way to offer value to your visitors by educating or entertaining them. It not only gives them a reason to return to your site but it helps define your brand voice and regularly creates new content that will improve your SEO. 

Being successful in any e-commerce marketplace is something worth celebrating. There is lots of competition in these spaces and distinguishing yourself from pack is no easy feat. But, being successful on one channel will not create a secure revenue stream for your business. To create a more sustainable income, you need to be able to reach a wider audience. Selling your product in as many places as possible is truly the best way to solidify your sales, increase your brand recognition, and establish yourself as a successful seller for years to come. The Internet is a big place; don’t be afraid to spread yourself out a little. 

Blog post by Andrew Maff, Seller's Choice.