The pros and cons of an Omnichannel channel?

Amazon has a new offering since last week called the European Expansion Accelerator (EEA). With this tool, sellers can easily expand to nine Amazon marketplaces in Europe and the UK. This has created an even greater reach in the field of online marketplaces.

What benefits can an Omnichannel channel offer your company?

Below are some important benefits:

Wider reach: One of the main benefits of using an omnichannel channel like Amazon is that it allows you to reach a wider audience than just your own website or physical store. Amazon has millions of active users worldwide, so listing your products on this platform can help you reach more customers.

Reliability: Amazon is a reliable platform, and customers trust that their orders will be delivered on time and in good condition. By using Amazon as a sales channel, you can capitalize on this trust and help customers gain trust in your brand.

Easy Integration: Amazon has an easy-to-use interface that makes it easy to add and manage products. The platform also offers various tools and services to help you manage your orders, shipping, and customer service.

Marketing Opportunities: Amazon offers several marketing tools to help you promote your products and reach more customers. This includes advertisements, promotions and personalized recommendations based on customer behavior.

Customer Feedback: By selling products on Amazon, you can collect valuable customer feedback that you can use to improve your products and customer service. Amazon also has a rating system that helps customers choose products and builds trust in your brand.

Are there also disadvantages?

Yes, just like any other sales channel, there are also some downsides to using omnichannel channels like Amazon. Here are some potential drawbacks to be aware of:

High Cost: While Amazon offers a wide reach, selling on the platform can be expensive. Amazon charges selling fees, advertising fees, and other fees that can add up, especially if you don’t sell a lot. So it can be important to manage costs carefully to ensure you stay profitable.

Competition: Amazon is a very competitive platform, and you will have to compete with other sellers to get the attention of customers. This may mean investing in marketing and promotions to stand out from the competition.

Less control: By selling on Amazon, you hand over some control to the platform. For example, you are limited in how you present your brand and products and you must comply with Amazon’s rules. This can sometimes feel restrictive and make it more difficult to differentiate your brand from the competition.

Dependence on one channel: Becoming too dependent on one channel, like Amazon, can be risky. For example, if Amazon decides to close your account or if there are technical problems, this can have a major impact on your sales and income.

Lower profit margins: Selling on Amazon can lead to lower profit margins, especially if you compete on price. Amazon is known for its low prices, and if you’re not careful, it can lead to lower profit margins or even losses.

All in all, using omnichannel channels like Amazon can help you reach more customers, increase your brand’s trustworthiness, and provide you with tools to improve your marketing and leverage customer feedback for further growth.

However, it is important to also consider the drawbacks and challenges and make a careful assessment before deciding to use the channel. Via the online ROI tool, you determine when you have earned back the investment in Omnichannel.

Need help making the right decision?

Then make an appointment online to further explore the possibilities.