Choosing the Right Channels for Your eCommerce Business

Here’s the deal: you’re just starting out as an eCommerce Business and you’re overwhelmed by the number of opportunities available in the digital landscape to reach customers online. Social media channels, marketplaces, direct-to-consumer websites, mobile apps… The list just goes on and on and on.

However, not every channel in existence will suit your business. Spreading yourself too thin across too many platforms can dilute your efforts and waste valuable resources.

With the help of an expert digital marketing agency in London, we’ve compiled this guide to help you prioritise the right way in the sea of digital opportunities. 

Know Your Product. Know Your People. 

But before we dive into the channel selection, let’s take a step back and assess your product and audience. There are some essential questions about your business you’d need to ask yourself:

• Are you selling niche or mass-market products? 
• Is your business model B2B or B2C? 

Answering these will help you clearly determine where your products will perform best. Equally important, however, is to understand your customers: 

• Where do they shop?
• How do they discover new products?
• What influences their purchasing decisions? 

Take the time to research what your target audience does online and how they make decisions, and use these insights to build your online strategy. If you want to improve conversion rates, your strategy should be aligned with your customers’ behaviour online.

Types of eCommerce Channels 

You know your business and products and understand your audience’s online behaviour. Now, let’s take a look at the channels. Because not all of them serve the same purpose, we can split them into several categories to help you figure out which ones would fit your business best: 

1. Owned  Channels 

Your website, Shopify, WooCommerce, mobile apps, email marketing, and SMS campaigns. 

Pros: These platforms give you maximum control over your own branding, the customer experience strategy you build, and pricing, which often results in higher margins. 

Cons: However, they typically require more upfront investment in customer acquisition and can take much longer to scale compared to third-party platforms. 

2. Marketplaces 

Amazon, eBay, Etsy, and Zalando 

Pros: Online marketplaces give you access to a vast pool of customers ready to buy. They have built-in traffic, are highly trusted by their audience, and can offer your business simplified international expansion. 

Cons: The trade-off here is that you pay higher fees, have to face fierce competition, and have limited control over your branding and customer relationships. 

3. Social Media Commerce

Instagram Shop, Facebook Marketplace, TikTok Shop, and Pinterest 

Pros: If your brand thrives on visual content, engagement, and discovery, and your audience loves impulse buying and prefers lifestyle-driven products, this is the place for your eCommerce business. 

Cons: The success of these platforms hinges on volatile trends and perpetual algorithm changes. And compared to more established eCommerce routes, you get lower conversion rates. 

4. Shopping Engines 

Google Shopping, PriceRunner, and Shopzilla 

These fall into the category of comparison shopping engines: platforms. 

Pros: Popular among price-sensitive consumers who are searching for the best deal, these platforms can boost your visibility and drive targeted traffic. 

Cons: Compared to many similar products, yours might not stand out based on brand and quality, as customers are more likely to choose the cheapest option. Additionally, the platforms can become costly due to their pay-per-click model. 

5. B2B Channels (if relevant)

Alibaba, Faire, and Handshake 

Pros: These are places where you can target other businesses and gain access to bulk buyers and potential for recurring orders. They can also be a strategic path to building a steady, high-volume relationship that your B2B business needs to succeed. 

Cons: B2B channels often involve negotiation and longer sales cycles.  

How to Choose the Right Channel

Before you choose your winner, you must assess how well the channel of choice will align with your business strategy. Again, you can ask yourself some questions to guide your decision: 

• Does the channel match your brand’s positioning and values?
• Are your customers already shopping there?
• Are your competitors using it, and are they seeing success?

Of course, the financial and operational implications are another important factor to consider. Research commissions, advertising costs, and each channel’s day-to-day effort require you to run it. 

Finally, will your channel of choice fit seamlessly within the system you’ve already implemented? It should complement it, not complicate it. 

Learn to Balance Your Efforts Strategically 

Now, you might be tempted to put all your eggs in one basket, but that can be quite risky. Algorithms change by the minute, fees increase, and customers constantly change their behaviour, so aim to diversify your sales channels. 

However, being present everywhere can harm you just as much, especially if you’re a small business with limited resources. Start small, test a few channels you believe will work and monitor the performance. See something that works? Double down on it! Focusing your efforts will yield better results.

Choosing the Channels That Drive Sustainable Growth 

Now that you understand your business and target better, the world of eCommerce should not be as daunting as it seemed at first. Not every platform will be your platform, and that’s okay. Understanding where your strategy will thrive is more important than being on a platform because it’s trendy to be there. 

Evaluate each channel carefully, start small, and scale on what works. And remember to always remain flexible and make data-driven decisions. With the right mix in place, your business will be on the path to success in no time.