Retailers: Expand at home and abroad with these distributor channels
1. Retailers: Expand
at home and abroad
with these distributor
channels
Extend your reach with Wholesale and
Marketplace channels.
2. Distribution channels used to mean:
B2C channels
(stores only).
The internet (and stores). Mobile (and stores and
internet).
3. Increasingly, the benefits of wholesale and marketplaces
are now being realised too.
Why?
Wholesale selling and marketplaces can be
cheaper, less risky and great for testing -
especially for international growth.
The important question is whether or not your systems are up to scratch?
4. Think global!
Fashion retailer Joe Browns opened
53 new wholesale accounts UK wide
following a trade show this year, while
Etsy launched Etsy Wholesale selling
worldwide in August.
Domestic growth is limited. The UK is
the most mature ecommerce country in
Europe, with €107,157 million turnover
(or about £84,500 million), but there are
still opportunities for pure-plays beyond
just B2C channels.
5. Think mobile!
Multi-channel retailers enjoy 20% more growth in sales via mobile than pure-plays. This
reinforces that multiple channels are key.
Some 72% of cross channel sales
come from the UK, France and
Germany.
The greater the number of influencing touchpoints, the greater your potential for sales.
6. Think simple!
You need to decide what’s right for your business. Stores can be expensive; wholesale
can be less risky.
Marketplaces are also more visible.
Amazon is the most popular
research source for shoppers in
the UK and Germany – even above
stores.
7. Think visibility!
Expanding beyond B2C channels with B2B distributor channels creates a bigger shop
window – at home and internationally. More visibility, especially in a greater number of
geographical areas, leads to higher sales with lower marketing spend.
8. Think now!
International expansion through traditional B2C channels is expensive, challenging and
takes up valuable resources - but needs to be seriously considered.
Some 94 million
consumers buy
cross border and
this offers great
opportunities for
selling short dated
stock, reducing
stockholding
and maximising
sell-through price. About 63% of retailers already trade online
overseas.
9. It’s tough, however, to replicate domestic markets due to:
High set-up costs.
Localisation challenges.
Variations in delivery,
payment and customs
rules and regulations
between countries.
Issues with returns.
To manage these challenges effectively, your team needs the right multi-channel and
multi-lingual systems.
10. Think wholesale!
Why? Because it offers low risk, low cost entry, learning and testing. Even US giant
Walmart has opted for wholesale stores in India to sell to small businesses after
abandoning its own store plans.
11. Takeaways:
Expanding beyond traditional B2C channels offers opportunity for growth
– both at home and abroad.
Assess if wholesale or marketplaces would work for your business.
Using B2B channels offers highly efficient testing models on top of B2C
channels.
Ensure your stock management and information is 100% accurate before
you begin.
The right systems are key.
12. Discover how you can expand your
business further by downloading your
free eGuide:
The store of the future: 10
ways to make people love
shopping again
The Store of
the Future: 10
Ways to Make
People Love
Shopping
Again
The Store of
the Future: 10
Ways to Make
People Love
Shopping
Again
In-store shopping is losing
out to an increase in online
In-store shopping is losing
out to an increase in online
sales, so it’s important
that you know how to bring
back your customers into
your four walls.
sales, so it’s important
that you know how to bring
back your customers into
your four walls.
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