Tag Archive for: Multi-Channel eCommerce

Part 2 – Hands Up I Was Wrong – But What About?

In this second part of the History of Multi-Channel Software, we’re starting a journey, a journey to find the utopia and a journey that we’re going to share openly, wins, failures, the lot.

The utopia for multi-channel software that can fit the needs of any business regardless of size, type, location or revenue both today and tomorrow.

And to do this effectively, I need to admit I was wrong.

 

A Re-Cap

In part 1 of the History of Multi-Channel Software we covered how we have ended up where we are today with the collection of software providers that offer pretty much the same options, all wrapped up into different interfaces for multi-channel businesses to use.

I also shared with you the vision for the future which I’ve put below, the “utopia”, the goal that we’re aiming for and the commitment that I believe together we can achieve. I also admitted that I don’t have all the answers and never will but are willing to share this journey as we go and we invited you to join in.

The Vision of the Future

“A hybrid of both free and paid for open source software where multi-channel business owners can pick & choose the tools that suit their business, both now and in the future

I Used To Think…

I used to think that multi-channel software had to:

  • Fit the needs of every business perfectly
  • Have every single feature, bell & whistle going
  • Advanced to the point of being over complicated
  • Do everything, anyone could ever want
  • Be one system that encompassed everything

And the thing is… Hands up, I was wrong, so very wrong.

The Glimmer of Hope

Crude by today’s standards, I had built my own eBay order management tool back in the early 2000’s using excel, outlook, an addon for Outlook and some VBA (Visual Basic for Applications).

I was parsing the notifications for “end of auction” and “end of transaction” emails from eBay using a plugin for Outlook (which amazingly you can still buy it today, see here), loading them into an excel spreadsheet and then using VBA to process them, adding in notification flags for a pick/pack/despatch process with mail merges to create invoices , then email mail merges to email customers their order received, packed and then despatched notices.

I’m probably being a little mean to what I built back then by calling it “crude”, it took me from using a paper tracking system to a semi-automated system, which then led the business to a stage where it could afford more advanced software such MarketWorks or ChannelAdvisor (the only two options we had back then) at around £15-20K a month turnover and then we added in MarketWorks, we ni-on quadrupled the business in 3 months.

I have always wondered “what if the business could have afforded the best software available earlier on?”.

As I sat there in the cyber-cafe looking at eSellerPro for the first time, I genuinely felt that “this was it”. What had frustrated me as a business owner myself and through having seen hundreds of business at Marketworks, seeing them struggle with a slowly developed product with the possibility that those frustrations could be answered and what you use today in eSellerPro is part of the answer I saw back then (after a ~3 years stint that is).

The Stark Reality

I believed one product could fit the needs of every scenario thrown at it and that is where I was wrong.

  • No software product will fit the needs of every business perfectly, ever
  • Software doesn’t need every cool idea in it for it to be viable and meet the needs of the vast majority of businesses
  • Who needs complicated when straight-forwards will work just as well?
  • Why does software need to do everything for everyone, when the core essentials are all that are needed?

The reality is that:

No single software product will ever meet the needs of every single business perfectly

And Wrong Again? Maybe Not….

I know many of you will cringe at the idea of ChannelAdvisor, having a core system and with bolt on modules, using specialists in their own areas, it’s a “hybrid system”.

Frankly speaking, you’re most likely scoffing at the idea because it doesn’t help that the base system is so expensive it rules it out as being a viable solution for +99% of all multi-channel businesses.

The thing is, I believe we were all wrong about this “hybrid” approach and I’ll explain why.

Take the massive cost out of this hybrid approach, so let’s say we take £600 monthly minimum fees and floor them by 95% to just £30 (yes that is thirty quid or $47 USD, or less but that’s a topic for another day) and suddenly it’s a lot more attractive don’t you agree?

Hold on to that thought for a few moments…

Breaking it Apart

Let’s boil everything down to the three key parts of a multi-channel software product.

An inventory management system, an order management system and listing abilities to marketplaces. This goes for any of the 2nd generation providers regardless of origin.

Inventory Management
The inventory management system would need to be able to with both simple and complex products (variations), kits, virtual products, stock control, imports, exports and customisable fields that you can match to eBay & Amazon item specifics.

Order Management
Then the order management system which would need to aggregate orders from multiple channels, websites, multiple eBay accounts, multiple Amazon accounts (if you’re being naughty lol), have order stages, customisable despatch options, links into couriers and back to the marketplaces for order updates. Email notifications, while they’re not an essential they are a nice to have and are of notable value for any order management system.

Listing Abilities
Being able to match up to existing listings on the marketplaces, create new listings and keep prices, descriptions and stock levels updated. And be kept upto date with the updates that these marketplaces like to do every few months.

These 3 are the key components for any multi-channel software product. I am missing one other part on purpose though, support. Because this component it is so special, I need to be address it specifically at a later date.

The Current Approaches

As we saw in part 1 the vast array of options, there is no one right way of approaching each of these components and when we look at the different providers out there, they have all come from different angles and ended up with varying levels of success for each of the 3 components.

Let’s pick on two other providers as an example. StoreFeeder, StoreFeeder came from a fulfilment background so as you would expect the despatch process in StoreFeeder is amazing. I love how you can batch process orders easily and I’ve not seen anything to touch it at the price point they offer. ChannelGrabber, they needed simplicity, so ease of use is unparalleled.

Each and every multi-channel software has come from a different direction and ended up with something that can (or is being) labeled as “Multi-Channel Software” and they can all be boiled down to these 3 components.

Again, hold onto that thought for a few moments too…

So a Time for a Different Approach

Keeping the key components in mind, 3 questions for you to seriously consider.

#1 What if we took the ChannelAdvisor, hybrid approach. One core system that has inventory management, order management and listing abilities and bolstered it with industry expertise?

#2 What if we took away the costly overheads and we leveraged a platform that was open-source and getting back to that £30/$47 I mentioned earlier, what if it would run on shared web-hosting, which is available anywhere, globally, inexpensively?

#3 What if we then said because it’s open-source, you can extend it further and gave you the power to innovate?

What if the listing abilities were available for free to eBay and Amazon was ridiculously inexpensive?

And Then Consider

Originally I thought this hybrid approach wasn’t the correct path to follow. It’s expensive with the current providers but on the flip side allows us to bring in industry expertise in each area, when you need it, if you need it.

So what happens if we floor that massive overhead, leverage the already existing technologies that are proven globally, bring in expertise when needed, if needed at all and open the doors to be able to innovate through open source? The potential is huge?

Interesting theory right?

Like we said in Part 1, we know that this new approach works, it’s not a theory for us or you anymore.

All that is needed is a journey to be started, for knowledge to be shared and for each of us to work together.

We have the the vision of a world where you can use a hybrid of both free and paid for open source software where you can as a where multi-channel business owner you can pick & choose the tools that suit your business, both now and in the future.

Find out more at UnderstandingE.com/NOW

And in part 3, we reveal all :)

Delving into Niches with Multiple Websites – Part 1 Why & How

Hola! Welcome to the first part of a series of articles on how to run multiple niche websites and really tap into multi-channel eCommerce without eBay & Amazon.

Multiple eCommerce WebsitesI have been meaning to write this series for quite some time now and it’s going to take me a while to work through the different aspects I’d like to cover, hence breaking it up into multiple parts which will take me a few weeks to cover.

It’s my intention to start from the beginning in this article and cover the theory, then in the following articles work through turning the theory into practice to reach the final goal of you being able to run multiple web stores from a a single installation and really tap into the power of going niche.

I know I’m going to get distracted along the way, this is for good reason, I’m going to be focusing on a single open source eCommerce platform called “OpenCart” to deploy this concept with you and there are a couple of extensions that I’d like to include as part of this guide, this includes a free to use addon that will enable you to sell on eBay from OpenCart and also to delve into an Amazon integration as well.

To be completely up front with you, I have developed a complete integration from eSellerPro to OpenCart and while it would be handy if you have eSellerPro to power multiple websites from, I’d like to stress that this is not a requirement and I’ll be keeping this in mind throughout the series of articles as I delve into the how to power multiple nice websites with OpenCart.

So for now in this first article, let’s focus on the “Why” and start on the “How” parts.

 

Why?

I’m fully converse with deploying numerous selling persona’s on eBay & Amazon. I’ve done this previously with +15 accounts and I know of one company that has taken this & thrown it to the wall and has over 30 limited companies all specialising in niches just on eBay.

I previously wrote a pair of articles that desperately need a rewrite that covered why using multiple eBay accounts might be a good idea (you can read them here and here). As I mentioned, they need a rewrite and let’s summarise these, as the theory is straight forwards and comes back to a just three key factors,  these are:

  • Timing
  • Personal choice
  • External factors

For the vast majority of manufactured goods, you are not the only company selling them, thus every single day, customers choose your competitors over you. There are an infinite number of reasons for this, timing, colour scheme, layout, description, title are a few factors.

Also, an interesting set of factors that I delved into a while ago was that there is a limit to the exposure for a given sales platform on a given day. This was started because I could see no viable reason why eBay sales should stay consistent within a specific window of 20% on a single day.

So let me ask you two specific questions here, if the response is anything like the one I normally receive back, this is exactly why you need to carry on reading this series of articles:

  1. By midday, can you make an estimate within 10% on the total value of sales for that day? (if you’ve not tried this yet, try it)
  2. Look at the sales totals for each day over the past two weeks. Do they stay within a 20% window?

Yep thought so. I’ve found some business owners that use eBay & Amazon can estimate their daily sales figures to the nearest £100 quite accurately just using that morning sales and others that can be well within 1-3% window on daily sales values in excess of £15K per day. The thing is, that’s not natural.

It’s what lead me to write a pair of articles, the first called “Why do eBay Sales Stay Consistent?” and the second to explore a hypothesis, that why I cannot prove, but I’d bet money on it or a subset of what I cover being in place, because its exactly what I would do, the article is here and called “The eBay “Best Match” Position Bias Modifier Hypothesis“.

I know I’ve not fully answered the “why” part just yet, but I need to explore a sub-topic, around choices. That’s next up :)

Choices, Choices, Choices

Choices, Choices, Choices. Which Colour do you like?While timing can be pure fluke (when they find your product) and I’ve already made a case for external factors in the earlier section, the one factor that you can most easily influence is choice.

Buyers like choices, I like choices, but what influences my choice of which company to buy from, especially to what influences my partner to what she buys on eBay can vary greatly. Sometimes its just the way the product data is laid out, sometimes its gallery picture, sometimes it’s the sellers feedback, shipping prices, the colours used, the photographs, the list is almost endless.

The fact is here, is that I, as any of your potential customers may open your product listing and “not like it” and move to the next one. It could ironically be for the same product. It doesn’t matter, the point is, I have personal tastes on what I like and so do your customers.

This is one reason “why” you should consider multiple persona’s for your selling activities. For example you could one persona set up as a full professional looking business and the second the complete inverse, maybe one account that just uses variations, one that does not, one that as separate listings for each product variation and there are a whole host of possibilities, as soon as you break away from the “single business” approach.

And back to Why?

I wanted to cover the choices section in some detail, mainly because it’s the easiest to understand, I like black, but you may like blue, that means we will respond differently to different pages, it’s a quirk of being human, we have different tastes.

Going back to the three key points, Timing, Personal choice, External factors. Your product may be overlooked, it might even not be shown for a specific search and being at the right place at the right time can and does play a role in the ultimate goal of the customer buying your product. We’ve looked at personal choice in some depth and I’ve already hinted that when using marketplaces that external factors such as my hypothesis for when it comes to “best match” search results, the worrying part is that is exactly what I would do.

These are just some of the reasons why you should consider a multi-faceted approach to eCommerce and I’m sure you can think of more reasons why this approach makes good sense (if you have any you’d like to share, let me know in the comments box at the bottom).

I’m fully converse with deploying numerous selling persona’s on eBay & Amazon, but for websites, this can also be tough nut to crack, mainly because it can be expensive and the results take time to take effect, hence this article series.

Going Niche of Niche

WorldStores +70 StoresIf you have a wide range of products, then it can be relatively straight forwards to slice your products up into groups and create persona’s for each group.

I’m not going to be covering how to do this with eBay here, but instead focusing on a different way of approaching this through multiple eCommerce websites over a couple of articles.

An excellent example of this is in the real world is WorldStores, take a look at this page. That’s over 70 dedicated websites  Each site is niche site to a specific range of products and this is the opportunity & challenge I’m going to be tackling in this series of articles. How to go multi-channel with multiple websites, on a budget.

If you’d like a corporate example see shopdirect.com that are responsible for Littlewoods, Very, Isme (previously Marshall Ward), K&Co (previously Kays) and the other is thehutgroup.com, they have at least a dozen eBay accounts that I know of and if they had 30, I’d not be be surprised, let alone the assortment of highly specialised “Niche” websites.

Which website platform to use?

If we pick on a few examples Magento can be, sorry “is” a resource hog, to run multiple websites off Magento (or even one larger site for that matter) then you’re going to need specialised hosting, which costs, its far from a simple platform to use and as soon as you mention “Magento”, all costs go up a minimum of 60%.

If we look at the bespoke offerings from eSellerPro, then cost, features & time to deploy is a major factor here and if we look at the ASPdotnetStoreFront from ChannelAdvisor, ignoring the setup costs & design fees, the £200 a month is a non-starter for each niche website.

We need cheap, we need ease of use, some snazzy functions that don’t require massive amounts of processing power & can be run on a shared web hosting account, an arsenal of free or inexpensive themes, an extensions & addons base that is varied and equally inexpensive and that’s why I’m picking on one of my favourite open source website platforms called OpenCart.

If you’ve not seen OpenCart before, then I think its about time you did. You can see both the front end of the base installation of OpenCart and the administration panels through their demostration sites here.

For me OpenCart makes an excellent choice, the admin is easy and the front end is feature rich. It’ll happily run on shared hosting accounts, its free, the themes are super cheap and crucially…. get this!! It will run multiple webstores from a single installation!

Summary & Your Feedback Please!

We know that niche works, I’m in a niche, you’re in a niche. But there are so many sub-niches we can get into with a product based business, we just need a cost effective route to do so and that’s exactly what I’ll be digging into in this series of articles using OpenCart as a base.

My closing questions are below and you can let me know your reply in the comments box below.

  1. Have you considered creating niche websites before? What stopped you?
  2. Do you already have niche websites, what has been your experiences so far?
  3. What would you like to see in this series of articles?

I look forward to hearing from you :)