Streamlining E-Commerce Operations With ChannelEngine
E-commerce is no longer a new phenomenon; in fact, it is now an essential part of businesses and retailers worldwide.
However, that does not mean that the process is always easy. As your company grows, so does the number of tasks required to ensure a smooth operation. In a highly competitive industry like e-commerce, streamlining your online store operations with technology might be just the thing you need to rise above the rest.
In the latest episode of our Unpacking E-Commerce Logistics series, we got the opportunity to speak with Jorrit Steinz, the CEO and Founder of ChannelEngine. As an entrepreneur with extensive experience in B2C, B2B, and D2C e-commerce, Jorrit addressed all aspects of e-commerce operations and shared his predictions about the future of e-commerce marketplaces during the session.
Key Factors to Consider When Launching E-Commerce Operations
According to Jorrit, there are three factors that should be considered by business owners before launching their e-commerce activities. The first is to ensure that they are making a strategic choice. More often than not, businesses simply place their products on Amazon and hope for the best, resulting in a situation in which 600 million products compete against one another. This has led to the downfall of many enterprises around the world. In this regard, it is crucial for business owners to pick the right marketplace where they can deliver their product(s) in the most effective manner.
Secondly, Jorrit believes in the importance of management buy-in and automation. Simply put, a management buy-in, is a corporate activity in which an outside manager or management team buys a controlling ownership position in an outside company and replaces its current management team. Meanwhile, e-commerce automation refers to a type of technology that automates e-commerce tasks and procedures such as inventory management, order fulfillment, and client communication.
The last factor that Jorrit advised business owners to pay attention to is third-party logistics. Due to the strict marketplace requirements on delivery, cancellation, and so on, it is difficult to be successful if your logistics are not governed. Consequently, if one’s seller ranking falls due to the 3PL’s poor handling of logistics (i.e. not meeting the delivery expectations of customers), they will simply lose their reputation.
How to Succeed In E-Commerce (B2B / B2C / D2C)
In Jorrit’s view, there is no universal method for e-commerce success since all e-commerce business models vary greatly from one another. B2C sellers, for instance, purchase wholesale from brands or distributors before shifting to marketplaces and social commerce. They rely on their own e-commerce business, and the majority of their traffic originates from search engines or advertisements. No matter what they get traffic from, they all shift across the marketplace, limiting their ability to benefit from market share.
D2C brands, on the other hand, offer their products directly to consumers through their own e-commerce stores and marketplaces because they are in control of transactions for them. Regardless of the model, business owners must ensure that they have a highly skilled team to be successful in scaling across e-commerce marketplaces. In fact, there are numerous agencies and logistical tools that can assist businesses, but it is still necessary to do it correctly on your own. Many Asian buyers are looking for brand stores on marketplaces because they want to ensure that the products are authentic and that the margins are higher.
E-Commerce Marketplaces Strategies for Businesses
The e-commerce market is a hive of activity, and it is easy to get distracted and forget what you went for in the first place. In Jorrit's opinion, it is critical to make your items stand out by implementing the following strategies:
Making a strategic decision is the first thing to pay attention to. Depending on what you are, don't just focus on the biggest marketplace because selling your things there will be more difficult.
In addition, you should consider multiple platforms, such as Walmart, Bed Bath, etc, not just Amazon, which can help you obtain traffic. So, looking at your products, your competitors on the site, and the amount of buyers vs sellers are all important.
Another strategy is to keep up with global trends. For example, currently, people are concerned about the environment, so selling sustainable products is both good for the world and beneficial for your business. If your products are certified, you can send the information to the marketplace, which helps you rank higher.
When it comes to marketplaces, always leverage on advertising platforms. Every marketplace gives you the chance to promote your products; but, if you add them to a marketplace without any advertising, such as pasting it into a search engine, no one will see it. Also, the difference between search engine ranking and marketplaces is that the marketplace helps you increase your organic results of product listings, making it easier to find.
Next, product launch strategies are much better than drip campaigns since it helps boost your sales in the beginning.
The last strategy is to ensure that you provide genuine things by giving product information such as certification, images, and so on. Two excellent examples are Shopee Mall and Lazada Mall.
The Future of E-Commerce Marketplaces
Jorrit foresees a greater shift towards a direct to customer (DTC) model, as well as the leveraging of multiple social channels in the coming years. Furthermore, he also believes that social commerce will continue to be on the rise, allowing individuals to connect and transact on various social platforms. As a result, everything that is currently producing clicks will most likely become transactional in the near future.
For the full discussion, check out the video below. You wouldn’t want to miss it!
About Jorrit Steinz
A creative and active entrepreneur, Jorrit Steinz has more than 18 years of expertise in B2C, B2B and D2C e-commerce, marketplaces, SaaS and international platform strategies. He started ChannelEngine in 2013 when he saw the need – as an e-commerce store owner himself – to have the ability to connect on any marketplaces. Today, ChannelEngine is trusted by over 8000 brands, and located in 7 offices across the globe with a team of over 200 marketplace professionals.
In addition, Jorrit described himself as an active and creative entrepreneur who thrives on the creation and expansion of new and interesting company prospects. He is also a public speaker at various events and an advisor to distributors, brands, and large retailers on the rapid evolution of the global retail industry.
About Unpacking E-Commerce Logistics Series
Unpacking E-Commerce Logistics brings together some of the best experts in the E-Commerce logistics and supply chain space to unpack key concepts from a variety of trending topics, ranging from the use of Artificial Intelligence in the industry to embracing hyperlocal delivery in the E-Commerce world. An integral part of this series are Ask Me Anything sessions where the audience can ask our thought leaders questions about their career paths, challenges, personal growth and even their plans for the future. No question is off-topic during these interactive 30-minute sessions!
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