Congrats! You’ve beaten the odds and endured massive growing pains in order to scale your eCommerce business. Now, it’s time to take your brand to the next level.
But what’s the best way to scale?
If this is the question at the top of your mind, you’ve probably been hearing a lot of buzz over two simple words: global and multichannel.
For every person who tells you the key to success in eCommerce is branching out into new geographical markets, someone else will tell you to expand into new sales channels. And the truth is, both strategies present stellar opportunities for growth.
For example, businesses that take on multiple platforms experience an average 9.5% annual revenue increase, while cross-border orders for physical goods could account for an impressive 22% of eCommerce transactions by 2022.
No matter which direction you choose, taking the leap won’t be easy. But as long as you have good knowledge of what goes into both strategies, you can be confident in knowing you have the right growth path for you.
That’s where this guide comes in.
Today, we’re shedding a light on what multichannel vs. cross-border expansion can offer your brand, highlighting the pitfalls that come with each, and revealing why it’s not only possible to have the best of both worlds, it’s also very likely to be your best option for success.
Are you ready to scale your brand like an eCommerce megastar? Find out how SellersFi can help.
Cross-border eCommerce involves opening your store to shoppers outside your home territory. For example, if your store is in the US but accepts orders from countries like China, France, or the UK, this is cross-border eCommerce.
Meanwhile, multichannel eCommerce is less about physical location and more about virtual location — when businesses choose to expand to more than one eCommerce platform. For example, if you have an eBay store and then decide to grow your online presence on Amazon’s platform.
Selling on multiple channels offers a ton of benefits that can help grow your brand — but they aren’t without disadvantages. Let’s take a no-holds-barred look at a few of the pros and cons:
Selling in different locations is a great way to expand your audience base and target new customers.
But it’s not always easy. Now that we’ve got a clearer picture of the benefits and drawbacks of a multichannel growth strategy, here are the real-deal pros and cons when it comes to cross-border growth.
Ready to grow your brand far and wide? Find out how SellersFi can help.
To improve your odds of success, it’s critical to pick the growth strategy that best fits your brand’s desired trajectory.
And remember, there’s no right answer. Your brand’s unique growth philosophy will dictate which direction you take.
Let’s make sure you look at all the right things before you decide to jump feet first into any one strategy.
Ultimately, the best growth strategy for you will come down to your unique goals for your brand, and your life. Do you want to build a solid reputation and revenue on your home turf? Multichannel is where you need to be. Hoping to be the next Amazon? Going global is a must.
Get clear about what you want your brand to look like over the next 6 months, 1 year, and even 5 years, to help guide your decision-making and ensure your strategy matches the results you want to see.
It’s important to figure out how much your expansion into your chosen country or platform will cost. Here’s a quick game plan to establish which path makes the most sense for your business, so you can avoid any nasty surprises later on:
Sometimes a business opportunity will require you to act fast to secure your spot.
Say, for example, you sell luxury bedding that’s growing increasingly popular in Thailand, Malaysia, and China, but few stores serve these markets. You also discover the demand in your territory has remained steady on most eCommerce platforms for these products.
From this information, you could decide that going global would be a wise business decision because you can make more money and establish your brand as a top player in that niche.
Whatever the case is for you, make sure you’ve taken the time to lean in and really assess the potential of the new market or sales channel at hand.
Going multichannel and global might sound like a crazy (and expensive) idea, but hear us out.
If your business is financially strong and has enough staff to tackle the challenge, going multichannel and multi-market can be a game changer.
By attacking the eCommerce market from different angles, you can propel your brand ahead and mitigate the risks associated with being on just one platform.
Done well, this approach could help you:
In recent years, marketplaces have successfully taken over the eCommerce world — and their revenues are the envy of many. In fact, Amazon’s revenue hit a jaw-dropping $386.1 billion and Alibaba reached a whopping $717.3 billion in 2020.
But marketplaces can be volatile. The companies that own these platforms control everything, leaving sellers at the mercy of their rules, fees, and governance, with little external recourse.
That’s why setting up shop on more than one marketplace is a no-brainer — but which ones you choose will depend entirely on your unique goals.
For example, if you sell handmade crafts, platforms like Etsy and Amazon might be a good idea. Whereas if you sell office equipment, sites like Walmart Marketplace and Amazon Business could be what you’re looking for.
First impressions count, so your store needs to be as inviting and credible as possible in order to attract new customers.
But how do you build consumer trust on a new channel or market?
We’ve got you covered. Here are a few ideas to get you started:
Whether you go global or multichannel, you’ll need a great tech stack to help save time, money, and headaches along the way.
Here’s what you’ll need:
You won’t want to hit the road without checking you’ve got enough money for the journey.
Even if profits look good right now, things can change, so it’s a good idea to have external funding lined up just in case.
Here are two of our favorite types of funding solutions for growing eCommerce brands:
With a bit of an extra cushion behind you, you’ll have the confidence and resources you need to take calculated risks when launching and growing your new stores.
(Psst, so you know, SellersFi offers working capital and daily payments to help eCommerce sellers like you make their goals a reality 😉).
Selling in new markets and sales channels is exciting, and can offer the chance to take your business one step closer to being the store you dreamed it would be.
But it’s no secret that managing global and multichannel eCommerce is challenging. To be successful, you need to be curious, resourceful, and patient. Double-check everything before you take the plunge to ensure you make the right decisions for your business, and be prepared to make mistakes.
Remember, you’re a successful seller with the experience and know-how to make your multi-market and multichannel eCommerce projects a success. Believe in your ability to make it work, and soon you’ll be living the eCommerce dream.
Want to stage your own eCommerce takeover? Discover how SellersFi can help make your biggest goals a reality.
