The Power Of We: 5 Benefits of Retail Partnerships
Have you ever considered building retail partnerships to sell your products? After a long silence, you may answer: “I already have my own eCommerce site. Why would I send consumers to a retailer site to purchase my products rather than my own site?!” You wouldn’t be the only brand to have this opinion of retail partnerships. But hear us out before you make up your mind completely.
We know it may seem counter intuitive to send your customers away from your site to purchase your products, especially when you already have eCommerce capability on your site. However, retail partnerships with other eCommerce retailers can result in a win-win outcome for both of you. In fact, when done right, these partnerships can result in a plethora of benefits for your business.
The “Power of We,” as Jonathan Tisch, Chairman of Loews Hotels, describes the practice, is becoming an increasingly effective way to optimise your eCommerce strategy. In fact, according to our research, offering consumers more choice, including partner retailers in your Buy Now options can help capture an additional 1-2% conversion rate on visitor traffic that would usually bounce off your website.
So, check out our list of the five opportunities retailer partnerships can afford your brand:
Retail partnerships empower your customers
People want choice. And like it or not, some of your customers may prefer to purchase from a retailer they know and trust (think Amazon or Tesco), instead of visiting a specific website and purchasing a product separately. Adding your product to their cart along with other things on their preferred retailer’s site can seem a lot less daunting to consumers, particularly if they are trying a product for the first time. Everything from shipping costs, delivery options, and payment options play a part in their choice of retailer.
Contrary to many brands’ belief, giving customers the option to purchase elsewhere does not adversely affect your own DTC store. Research findings surrounding our Buy Now technology tells us that loyal customers will always look to buy your product from you directly. By giving your customers the power to choose where they want to purchase your product, you are solely focusing on trying to capture the other online shoppers (around 90%) who abandon their carts or leave your site and look for your product elsewhere.
Extend your customer reach and attract new customers
How many markets do you currently operate in? Would you like to expand those markets? Creating retail partnerships can provide your product with additional exposure to new customers. Whether they’re younger or older, more affluent or less affluent, by offering your product for sale via another online retailer you are putting it in front of people who might not have otherwise considered trying your product. Which in turn can help create more loyal customers.
Building retail partnerships lets you gain access to new markets in only a fraction of the time and the cost involved with setting up your own direct sales team. Online retailers like Amazon and Flipkart have a significant customer reach thus, the ease of entry into new markets is high. In addition, selling on a respectable marketing place also helps build trust and credibility around your product.
Take advantage of customer reviews with retail partnerships
According to recent statistics, 90% of consumers read online reviews, and 88% of them trust online reviews when considering a brand. Some customer reviews carry more clout than others. Take Amazon for example. According to Market Track, half of all shoppers say they rely primarily on Amazon for reviews. Almost a quarter check Amazon even when they’re physically standing inside a store. “They can be in Best Buy or Home Depot, but they go on their phones to check Amazon reviews,” says Greg Perry of One Click Retail, an eCommerce data company.
By listing your products on other retailer sites, you can take advantage of the trust and credibility afforded these retailer’s reviews.
Increase sales and conversion rates
By offering a variety of retail options for your customers to make a purchase, you increase the convenience and ease of purchase for your customers, which in turn, boosts profit. Simply put, having a variety of buying points gives you more tools with which to make a sale. Selling your products through other online retailers also means you’re not dependent on any single revenue stream (e.g. your own eCommerce site).
Our research also tells us that traffic driven to other retailers, like Amazon, from ChannelSight’s Buy Now buttons have higher conversion rates than organic traffic to online retailers. Not only do higher conversions mean more sales for you, but they also afford you a little more bargaining power with partner retailers when it comes to better page positioning.
If you select to partner with other retailers via ChannelSight’s Buy Now technology, you will be able to track which retailers your customers choose when they select to purchase from an alternate retailer.
As we mentioned earlier, loyal customers will always look to buy your product directly from your DTC site, but what about the other shoppers online (approximately 90%) who abandon their carts or leave your site and look for your product elsewhere? Where do they go? What do they do? What can you do to capture value from them? Our Buy Now technology allows you to track which retailers your customers choose when they select to purchase elsewhere and additional items they have added to their basket. If you can track what a customer is purchasing, and where, more targeted marketing can be introduced.
Now that we’ve dispelled some of your concerns about partnering with other eCommerce retailers, why not get in touch with our team to discover how our Buy Now technology makes it possible for customers to purchase your products through another retailer, so you never miss out on a sale (and capture an additional 1-2% conversion of visitor traffic).