What Are the Sales Channels? Discover 3 Platforms for Brands
Selling products online is now a crucial strategy for businesses looking to expand their market and reach customers more effectively. If you're wondering what are the sales channels available today, the three main platforms—Marketplaces, Brand.com sites, and Social Commerce—are gaining immense popularity among SMEs and retailers.
However, selecting the right platform significantly impacts your sales performance and business growth. Let’s dive into the advantages and limitations of each channel, and explore some helpful tips to decide where to sell products most effectively.
Marketplace: A Sales Channel with a Large Customer Base
Advantages of Selling Through a Marketplace
Access to a Large Customer Base Quickly
Marketplaces offer a vast and geographically diverse customer base, enabling businesses to reach potential buyers faster. Selling on these platforms can drastically cut down the time needed to build a new customer base. Marketplaces also provide built-in support systems like online payments, shipping logistics, and customer service.
Ready-to-Use Infrastructure
With ready-made systems for payments, shipping, and after-sales service, sellers don't need to invest in technology development or backend management. This allows businesses to start selling immediately.
Consumer Trust Through Reviews and Product Guarantees
Buyers often trust marketplaces that offer customer reviews and product guarantees. This credibility can help boost trust in your brand and drive sales.
Promotions and Campaigns to Attract Shoppers
Frequent sales campaigns like flash sales and discount coupons make it easier for businesses to boost sales without creating promotions from scratch.
Limitations of Selling Through a Marketplace
High Competition
Because many sellers don't fully understand what are the distribution channels available and immediately turn to marketplaces, competition is fierce—especially on price. Businesses often need to offer discounts or incentives, which can reduce profit margins.
Sales and Advertising Fees
Marketplaces typically charge commission fees on each sale and additional fees for advertising, which can eat into your profits.
Limited Control Over the Customer Experience and Branding
Selling through a marketplace limits your ability to control the customer journey or build a distinctive brand identity, as most of the experience is dictated by the platform’s structure.
Brand.com: Your Own Branded Online Store
Advantages of Selling Through Brand.com
Full Ownership of Your Brand
Running your own website gives you complete control over design, product presentation, and the customer experience.
Customer Data Collection for CRM
Selling via Brand.com allows businesses to collect valuable customer data and use it to develop effective Customer Relationship Management (CRM) strategies, fostering long-term loyalty.
No Platform Commission Fees
By selling directly through your own website, you avoid platform fees and can maximize your profit margins.
Enhanced Credibility and Brand Image
Having your own well-designed website strengthens your brand’s credibility and supports long-term business growth.
Limitations of Selling Through Brand.com
Initial Investment in Website Development
Building a professional website requires investment in design, payment processing systems, stock management, and backend operations.
Marketing Efforts Needed to Drive Traffic
Unlike marketplaces that naturally attract visitors, Brand.com sites require strong marketing strategies to bring in customers.
More Complex Operations
Managing your own e-commerce site means handling payments, logistics, and customer service on your own, making operations more complex compared to marketplaces.
Social Commerce: Direct Sales Channels to Engage Customers
Advantages of Selling Through Social Commerce
Direct Communication and Interaction With Customers
Social Commerce platforms like Facebook, Instagram, LINE OA, and TikTok allow businesses to engage directly with customers, building stronger relationships and trust.
Full Control Over Brand and Sales Strategy
Social Commerce empowers businesses to manage all aspects of product presentation, content creation, and promotions, making it easier to fine-tune strategies based on target audiences.
Lower Costs Compared to Marketplaces
Social Commerce platforms generally have lower fees, allowing sellers to leverage organic reach and minimize advertising costs.
Higher Conversion Through Live and Chat Commerce
Live streaming and chat interactions enhance the buying experience, offering personalized and immediate responses that boost conversion rates.
Limitations of Selling Through Social Commerce
Self-Management of All Processes
Sellers are responsible for managing payments, shipping, and customer service independently.
Constant Algorithm Changes
Social media algorithms change frequently, potentially reducing customer reach without additional advertising investment.
No Automated Stock Management
Unlike marketplaces, inventory must be manually updated, requiring accuracy and attention to detail.
Unsure Where to Sell Products? Social Commerce Might Be Your Best Bet
While marketplaces offer a large, ready-made customer base and robust support systems, Social Commerce is rapidly emerging as an attractive option—especially in countries like Thailand, where consumers spend a lot of time on social media.
Strategies for Successful Social Commerce Selling
Create Engaging Content
High-quality content like product review videos, live streams, and influencer collaborations can significantly boost visibility and customer interest.
Use Chat Commerce for Real-Time Customer Support
Answering customer inquiries through chat builds confidence and makes it easier for customers to make a purchase decision.
Targeted Ads on Facebook, Instagram, and TikTok
Advertising should be carefully targeted to your ideal customer groups to maximize reach and conversion rates.
Use Management Tools to Boost Efficiency
Supporting tools like LINE OA, chatbots, and CRM systems help streamline sales management and enhance customer service.
Now that you understand what are the sales channels, it’s clear that selecting the right online sales platform depends on your business’s objectives and resources.
- Marketplace is ideal for businesses aiming to access a broad customer base quickly, supported by ready-to-use systems.
- Brand.com is perfect for businesses wanting full control, enhanced credibility, and stronger branding over the long term.
- Social Commerce is one of the best channels to sell products for businesses that want to control their brand narrative, build direct customer relationships, and minimize platform fees.
For businesses aiming for sustainable growth, Social Commerce is a highly potential option. Implementing the right strategies can help businesses build a stable customer base and achieve long-term sales growth. Additionally, utilizing tech solutions can further support the development of websites and systems that effectively meet customer needs and enhance operational efficiency.
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