Hi, everybody, Seth David here from the world famous Nerd Enterprises, Inc.
I'm partnering with QuickBooks to bring you a spectrum of videos
covering topics that will show you how to run your business
more efficiently, more effectively and with greater accuracy.
Today, we're going to look at
how to set up the right multi-channel distribution system.
That's right for you.
You may know me from my YouTube channel where I trained small business owners
like you in subjects like accounting and process and workflow design.
Before we share some best practices
and the pros and cons of a multi-channel distribution system.
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What is the multi-channel distribution system?
The multichannel distribution system is simply a system
where you use two or more sales channels to deliver products to customers.
Here's an example.
A customer looking to buy a gift
for his sister by way of a sweater might start out by looking on Etsy.
But then he finds out that the product's not going to arrive on time.
So he continues his journey searching on Amazon.
Along the way, checking Google and other places for coupon codes.
Ultimately, he gets back on to Amazon and makes the purchase.
If you're selling on both platforms, you've got a guaranteed sale.
Customers now expect products to be available in more than one place.
Which is why having a multi-channel distribution system makes a lot of sense.
A multi-channel system can benefit your business in the following ways.
But first, improve customer perception.
Brands that provide
a seamless buying experience improve the customer's experience overall.
These brands are perceived as more attentive to customers
needs, purchasing habits and digital savageness.
Second, increasing your customer base.
Brands that use a
multi-channel distribution
strategy are putting their products right in the path of their customers.
Whether that's in a store online and it increases sales exposure
and customer reach.
Number three, reducing risk through diversification.
Multiple distribution channel means you don't have to rely on a single channel
as your only source of income.
Merchants who diversify through multiple channels can avoid a major drop in sales
as a result of a supply chain breakdown or a major account suspension.
A while back, one of my clients who was in fact selling on multiple sales
channels, came in to work one day
only to find out that one of the major sales channels had shut him down
overnight over something that was totally outside of his control.
Luckily, he had these other sales channels to rely on while he repair the damage
that was caused by something that he had no control over for
unlocking growth and untapped markets.
Going multichannel also exposes businesses to completely different
groups of customers, some of whom may become first time buyers.
Five Greater control over your brand's future.
When you use a multi-channel strategy, you're not bound
by the terms of a sole platform.
This means you're free to optimize your supply chain,
get creative with your marketing, and have complete access to your customer base.
While a multi-channel strategy can increase sales and exposure,
you should consider the following before expanding your distribution channels,
increased costs of labor and materials, more products and more places
means more suppliers, geographically dispersed warehouses, additional staff
to fulfill orders and additional shipping costs, cannibalization of sales.
Opening up an online store could cause in-store sales
to drop the number of people visiting your physical store.
It could go down.
Now that this more convenient option is available, by the way,
when the cannibal was late for lunch, the others gave him the cold shoulder.
Potential for channel conflict.
When you run multi-channel distribution, your channels could end up
competing for the same customer.
There's also potential for conflict
between direct sales and independent distributors, retail versus
distributor and small merchants versus retail. Goliath's.
Increased complexity.
With more sales channels, you'll have the added work
of managing multiple inventory parts and skews or stock keeping units,
fulfilling orders, working with suppliers, providing great customer service
and guaranteeing delivery on time for each channel.
An inability to keep up can lead to mistakes and unhappy customers.
With the right tools and
strategies, a multi-channel distribution system can work for your business.
Here are three best practices to keep in mind.
Mind your silos.
With each new channel that you enter,
you run the risk of duplicate records and inconsistent data entry.
Your employees also
could be entering information from multiple systems incorrectly.
To properly manage a multichannel distribution system,
you must agree on a cohesive underlying data, create a frictionless relationship.
This can be done through quick responses and access to rich information
from sizes, color varieties, high res images and stock levels.
Automation is the easiest, least time consuming way to do this,
to manage the data coming in from all these channels,
but need a single source of truth.
Quick books. Commerce can be your ally in future proofing your business.
This platform can help you anticipate issues, of course. Correct.
Get ahead of trends and make smart decisions in a centralized hub.
Opening up your business
to multiple sales channels does not have to be intimidating,
whether you're selling on multiple channels or on your own
website, quick books, commerce can make things easy QuickBooks.
Commerce is a robust platform that integrates seamlessly with leading
e-commerce apps, including Shopify, Squarespace, Amazon and Etsy.
Click here to check out our complete list of cookbooks, commerce,
integrations, and see where you can take your business next and sign up today.
Now that you've brushed up on the best practices
and setting up a multi-channel distribution system,
I can't wait to see your brand show up on different channels. Who knows?
Maybe I'll buy one of your products if I've helped you out in any way today.
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We really appreciate it. And I'll see you in the next video.