Amazon abruptly halted orders from many of its sellers without explanation last week, spreading panic among those reliant on their marketplace.
Whether this sudden and unannounced move was a misguided corporate strategy to bully vendors into selling directly via Amazon’s marketplace or a strategy to cut the middlemen, the abrupt suspension of orders without notice serves as a bitter reminder to suppliers of the risks of over-dependence on a single sales channel.
The decision calls for an honest look at the risks to your business security of being too reliant on a single business relationship.
We’ve outlined below why it’s smart to diversify your sales channels and how finding a clean, modern marketplace is strongly advantageous to your business:
#1 Reduce Risks
Diversification is a common strategy to reduce risks at any type of business or investment. Does the idea of not been able to login to your Amazon account give you nightmares? Then you are probably over dependent.
A quick screening on Amazon sellers groups on social media will connect you to a dozen of suppliers with their accounts suddenly deactivated, with retained inventory and even to contacts of ‘reactivation specialists’.
You could avoid becoming a hostage of a single marketplace by distributing your inventory and building a reputation in different channels that could sustain your business if you are suddenly banned, suspended, or face any issues in your main channel.
#2 Reach New Audiences
If you are selling online and offline, you probably noticed that your audience varies substantially from one channel to another. Marketplaces are becoming more niche, giving you access to a variety of customer communities that would unlikely land on your website.
#3 No Switching Costs
Some marketplaces work on a no-strings-attached basis. If you do not need an exclusivity contract and don’t need to pay fees upfront, then why not give it a try?
Until the end of March, Peddler.com has a special offer 2% transaction fee for those joining the marketplace and a convenient on boarding process that will get you quickly connected with their crowds of customers. This puts Peddler at one of the lowest platform rates online.
#4 Avoid unfair competition and lack of transparency
We all know how competitive Amazon type environments have become. Competitors buying your product to write poor reviews? Increasing fees and shrinking margins? There is a way out of overcrowded marketplaces.
At Peddler we believe is possible to create a fair and merchant friendly environment.
Small Business Owners are the core of our business and we won’t grow if they don’t.
Our focus is to unleash the potential of collective purchasing and sell great products. So no unclear communication, no hidden data or abruptly canceled vendor accounts. And we are a young startup (only 1.5 years old) so you’ll have an energetic team on your side and lots of attention to growing your merchant dashboard. In fact, we’re growing so rapidly, that some sellers already outsell on Peddler over Amazon.
#5 Give your customer something new
Join in the community fun. Online shopping doesn’t have to happen alone. On Peddler, you can offer the group buying experience along with traditional purchasing, and tap into a large community of satisfied customers who want more enjoyment from the shopping experience.