For sellers that are new to online distribution, there are many options to consider to find the right sales and marketing channels. Should you create your own website, rely on marketplaces like Amazon or eBay, or both? Should you be the exclusive distributor, or sell at wholesale to retail companies?
These answers vary depending on what you are selling, and how you have already been doing so. For instance, if you have a well-known product, you may do better with direct channels like your own website. You may find yourself competing against other sellers on marketplaces like Amazon, Walmart, or eBay. However, if you are launching a new private label product, indirect channels may be better to reach your target market.
Finding the right channels takes some time and consideration, but generally speaking, using a mix of direct and indirect channels is a good place to start. Setting up your own website with the means to purchase your products is nearly essential for branding and to be able to connect directly with customers. If you are a new brand, you will also want to consider selling through marketplaces such as Amazon, eBay, Jet, Walmart, and others. These channels offer varying amounts of control over your brand image and customer interactions, so it’s important to fully understand what each channel offers. Your profit margin will also be lower when selling through marketplaces / indirect channels due to selling fees.
Remember not to “put all your eggs in one basket” and rely only on your website or only on a single marketplace like Amazon. Generally speaking, it’s best practice to use a mix of direct and indirect channels, even if this involves selling at wholesale to retailers.