Message for e-Commerce Sellers: Go Multi-Channel!

Over at the ChannelAdvisor corporate blog, David Spitz has a great article based on some data our business intelligence team has been working on.

We've long believed that the most healthy merchant has a diversified portfolio of e-commerce channels that allow them to easily move different types of products with different goals. Want the top price and lowest channel cost? Use your website. Want to turn inventory to cash? eBay (EBAY) is king. Have some very deep sku's you have a great price on? Overstock. Do you have some 30 day old inventory that's not moving on your website? Amazon-it!

Well now we have enough data to quantitatively prove that multi-channel sellers are growing much faster than the single channel - usually eBay - seller. Dave reports that multi-channel sellers that have been multi-channel since 2006 are growing 220% faster than single-channel. Newly multi-channel sellers (2007) are growing 42% faster than single-channel sellers.

Even with eBay showing signs of life, the data couldn't be clearer: If you are a single-channel seller, you need to go multi-channel ASAP if you want to grow your business at the same pace of e-commerce.

Comments

[whoiskiddin...:]

Thank you.

FINALLY Scot Wingo ran out of the eBay kool-aid and has seen the REAL picture. eBay is only ONE of many vehicles to aid a seller, they are NOT the "one size fits all", and, right now, seem to be doing everything in their power to actually drive sellers to those other avenues to seek the success. Now, perhaps IF eBay would put down their own kool-aid and take off the rose tinted spectacles, they would also see the trend here, drive away sellers with bad policy changes and those sellers WILL find the alternate ways to market their product. Of course, one could also add that eBay is the most costly venue to sell, and, coupled with a dismal 50%, at best, sell through rate makes for a dark cloud over eBay as a viable business tool for the forseeable future. That 220% increase will increase Y/Y as more and more internet sellers either explore (or are pushed) towards the 'greener grass" on the other side.

2008 Mar 20 09:37 AM

[-noname-:]

I wouldn't be encouraging anyone to list on ebay!! It's expensive to list and the only one gaurenteed to make a dime on that site is ebay themselves... There are so many other sites who treat their customers with respect and actually give "real customer service", other than the canned responces you will get from ebay...

2008 Mar 20 10:56 AM

[Russian Cap...:]

Once again, two of the three anti-ebay zealots.

I agree multi-channel is the best way to go....but not sell on ebay is foolish and down right moronic!

Plenty of folks make a very nice living on ebay and their take rates have been increasing. Ebay wants to milk the cow-not slaughter it.

A few failed sellers are right to voice their opinion but any smart person should take them w/a mighty grain of salt!

2008 Mar 20 02:53 PM