Brands must adapt to stand out in a competitive economic environment. That’s what barbecue manufacturer Weber, apparel retailer Azura Fashion Group, and mattress brand Zinus told Rithum during our panel discussion at Australia’s 2024 Retail Fest event. Consumers are spending more time shopping online and visiting more websites and social media before making a purchase.
To meet consumers where they are, brands are turning to third-party commerce (3P). 3P commerce allows brands to reach consumers directly through retailer marketplaces. However, managing multiple channels can be challenging. By investing in a unified marketplace management solution, brands can streamline operations, saving time and resources.
Here are four lessons for brands managing a multichannel selling strategy.
Retail Media helps Weber stand out in a competitive market
Brands are under pressure to establish their online presence, said Marco Rocha, E-Commerce Channel Manager at Weber. Competing in a crowded market space and trying to prove authenticity to a new audience is challenging. By introducing a robust retail media advertising strategy through Rithum, Weber has increased sales conversions and improved its overall visibility in high-demand searches, he said. Rithum helped Weber streamline its advertising process and automate bids, ensuring the business gets the best ROI on their ad spend.
Brands need to adapt product selection to meet consumer demand
Azura Fashion Group connects fashion brands, suppliers and resellers with global customers through a network of marketplaces. It had to adapt its listing strategy to reflect the differences in customer preferences, said Sam Wood, CEO and co-founder.
“People don’t stop buying items during economically challenging times, but what they do buy will change,” Wood said. He highlighted that major discounting and promotions wasn’t the best route for the retailer. Instead, adjusting its marketplace strategy and expanding into new markets has helped increase profitability by 20%.
Consumers are actively seeking the best value for money items and will shop around for the best price. Data from our 2023 Online Consumer Behavior Global Report conducted by Rithum and Dynata shows, 83% of consumers will visit at least 2 marketplaces before committing to a purchase. Diversifying sales channels can help get your products in front of new audiences and boost profits.
“People are doing their research online. If they know an item is not available in their market, they will contact us and ask when it’s being launched on Amazon or eBay. We had to make sure we met that demand,” said Weber’s Rocha.
Investing in marketplace management can simplify cross–border selling
Brands need to develop individual strategies for their marketplaces and move away from a one-size fits all approach, said Azura’s Wood. “Listing products onto a marketplace and then sitting and waiting for sales to happen just doesn’t work anymore,” he said.
Treating each marketplace like your own website and investing in aspects such as the user experience, shipping, and creative elements can help to engage consumers.
Azura Fashion Group currently sells on 56 marketplaces across 28 countries. Partnering with Rithum has allowed the retailer to expand its reach globally and simplify the complexity of navigating new territories.
The importance of building relationships with marketplaces
Relationship building with marketplaces can be a great way to develop an effective sales approach. “A marketplace is not a self-serve checkout, you need to build those relationships and work on a shared strategy,” said Dan Pittman, country manager at Zinus.
Marketplaces have a depth of knowledge and insights on what resonates with their shoppers. Partnering with them and having regular conversations about goals and KPI’s can help you identify the best way to maximise sales and help you reach your targets.
Rithum’s network includes more than 400 channel integrations so you can find the marketplaces which best suit your business needs. To learn more about how Rithum can support your marketplace strategy, contact a member of our team.
