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Multi Channel Sales - Sales % as per channel

Discussion in 'General Business' started by Redkamo, Jan 18, 2018.

  1. #1
    Hello all,

    New here. I am currently doing market research into a product i can manufacture and sell through ecommerce.

    We are trying to create our online presence through developing our own website, and through ecommerce sites such as Amazon etc, as well as affiliates.

    I am trying to find out very approximate figures for the size of the market, and the size of my own potential sales, in order to justify going online.

    I currently use 'junglescout' to get approximate figures of different sellers in our industry (car care products). However, i would like peoples advice on, APPROXIMATELY, how much of a serious sellers sales would go through Amazon, and how much would go through other channels.

    e.g. if i see someone is selling 10 units per month, can i assume through their multi-channelled approach, they should be selling 100 units overall? or 20? or 15?

    I understand that this would vary with everybodies particular sales strategy, but is their an industry standard thats say "well as a serious ecommerce seller, usually only 30% of sales typically go through amazon"

    I know i can just start selling and see what happens, but we need to make some capital asset investments (to do with new moulds for bottles) to start selling. I would like to know if this market is worth developing basically.

    Any views, opinions or past experience would be greatly appreciated!

    Redkamo, Jan 18, 2018 IP
  2. jrbiz

    jrbiz Illustrious Member

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    Welcome to DP. You may have noticed that members did not jump into this discussion eagerly. Some of that is just the slowness of any forum but I suspect that the more knowledgeable members were reluctant to post. This is because there is nor industry, market, or any standard or rule of thumb that would provide any practical advice. Too many variables to even count. Let me give you an example of an online company I started in 2004. When we launched, by design (our plan was to be an eBay PowerSeller), 80% of our revenues came from eBay and the rest directly from our website. In 2006, Amazon invited us to start selling in their marketplace and we did, but it never rose above 10% of sales. This is mostly about the product being offered, by the way. More of our buyers on eBay, by far, at that time. In 2008, we decided to stop the B2C side of the business and focus selling to corporations which we continue today. In 2008, we had zero revenues on eBay and Amazon and all orders came from our website, over the phone, etc. A lot of what is driving this evolution is not only the type of product, but what I want to do and achieve as the business owner.

    Anyway, I would be skeptical of any "rules of thumb" that are posted on this or any other forum in terms of having relevance to what you are trying to learn.
    jrbiz, Jan 23, 2018 IP