Perhaps the most staggering statistics mentioned at this year’s WooConf in beautiful Austin, Texas were the following:
- 25% of the world’s internet is powered by Wordpress
- 37% of all branded eCommerce sites (also referred to as shopping carts) worldwide run on Wordpress
Those are baffling numbers that really show the importance of Wordpress (whose parent company, Automattic, acquired WooCommerce in 2015) and its functionality for retailers. The democratization of online retail was the overarching theme of the conference which took place last week at the legendary Austin City Limits live venue in downtown Austin.
We also spent time collaborating with developers within the WooCommerce ecosystem about all the new initiatives we’ve been working on. We released API functionality last summer, and since then we’ve been able to integrate with more third-party apps such as Shipwire, Scout’s topShelf, and Amazon International.
Building for tomorrow’s commerce is a major theme for 2016. We have several upcoming releases that will expand Stitch’s inventory operations platform even further, and our conversations at WooConf gave us even more insight into how we can continue working with partners in the ecosystem to propel the retail industry forward with innovate software solutions.
Software may be eating the world (and that’s a good thing), but multichannel selling is eating traditional commerce and here’s how you can join the meal. In my session, I focused on these three questions:
Why should I consider multichannel selling?
Last year, we released a multichannel and online marketplace data report where we found sellers who sold on a branded eCommerce website and a single marketplace made 38% more than those with just an online store. Additionally, we saw that sellers with two marketplaces, for example Amazon and eBay, increased their revenue 120% over those with just a single eCommerce site.
I know what you’re thinking. “Great! I’ll start selling on Amazon right now and will instantly see that 38% bump in revenue!” It’s not quite that simple. While the data proves you should consider expanding into new marketplaces, adding new sales channels also means adding new complexities to your operations..
What should I watch out for?
A key element to any major business decision is a firm understanding of your business goals are, how these changes will impact your business mix, and, in this case, how a marketplace will help or hinder your overall objectives.
In that same data report, we found that branded website order volume was 18% less than marketplaces, but they had 129% more revenue per order. This can play to your strengths if you’re focused more on volume than revenue. Marketplaces also limit what you can offer for promotions, deals, and bundles.
Where should I start?
Alright, I have a couple of suggestions:
- Start small by testing a few products to see if they are successful based on the goals you set.
- Add a service to help list your entire product catalog. Look through an app store or review site, like GetApp, to find the one that would best fit what you’re looking for. For example, Stitch helps retailers easily push product listings from our inventory operations platform into eCommerce sites, like Shopify, and marketplaces, like Amazon and eBay.
If you’d like to learn more about multichannel selling, watch my recent webinar on How to Strategically Expand into New Sales Channels.