The digital marketplace is booming, but are you truly maximizing your brand’s potential and upholding your values by relying solely on third-party platforms and logistics providers? Over the past few weeks, we’ve seen consumers vocalize and revoke their support of large big box retailers.
Beyond the usual concerns about profit margins and brand control, recent shifts in retailer policies, particularly around Diversity, Equity, and Inclusion (DEI), have added another layer of complexity for businesses. We have long advocated owning as many spaces as possible and not solely relying upon one or two channels to support your organization. If jumping into a B2B distribution deal was your primary play, it’s time to consider taking control of your e-commerce and logistics. In the least, explore the thousands of independent retailers. It’s time to own your customer experience, profits, and values.
The Hidden Costs of Convenience (and Compromise):
Third-party platforms and logistics providers offer a seemingly easy route to online sales. However, beneath the surface of convenience lie several hidden costs, now compounded by the challenge of aligning with retailers whose values may be shifting:
- High Fees and Commissions: Marketplaces often charge significant commissions on each sale, eating into your profit margins. Logistics providers also take a cut, further reducing your earnings.
- Limited Branding and Control: When you sell through a third-party platform, you often compete against countless other sellers. Building brand recognition and fostering customer loyalty becomes incredibly challenging. You’re playing by their rules, not yours.
- Data Ownership: You’re essentially handing over valuable customer data to these platforms. This data is crucial for understanding your customers, personalizing marketing efforts, and driving future growth. Without it, you’re missing out on a goldmine of insights.
- Lack of Flexibility and Alignment: You’re often locked into the platform’s pricing structure, shipping options, and business practices. This lack of flexibility can hinder your ability to adapt to changing market conditions and ensure your partners reflect your brand’s values.
- DEI Policy Discrepancies: Recent changes in retailer DEI policies have left many brands scrambling. Choosing which retailers to partner with has become a complex ethical decision. Do you compromise your values for broader distribution or prioritize alignment with retailers who share your commitment to DEI? Will your customers support you if you remain with retailers that do not align with inclusion?
The Power of Ownership (and Values):
Creating your e-commerce site and managing your logistics empowers you to:
- Maximize Profits: By cutting out the middleman, you keep more of your hard-earned revenue. You control your pricing and can offer competitive deals without sacrificing your margins.
- Build Your Brand: Your website is your digital storefront. You have complete control over the branding, design, and customer experience, allowing you to create a unique and memorable experience that fosters brand loyalty.
- Own Your Customer Data: Collecting and analyzing customer data is essential for understanding their needs and preferences. This data lets you personalize marketing efforts, improve product offerings, and build stronger customer relationships.
- Gain Flexibility and Control Over Your Partnerships: You can choose your shipping options, offer personalized customer service, and select partners who share your values. This agility is crucial in today’s dynamic market.
- Cultivate Direct Customer Relationships: Direct interaction with your customers builds trust and loyalty. You can gather feedback, offer personalized recommendations, and create a community around your brand and shared values.
- Uphold Your DEI Commitment: Owning your e-commerce platform gives you greater control over your brand’s message and partnerships. You can work with logistics providers and partners who commit to DEI, ensuring your business practices align with your values.
Taking the Leap (and Taking a Stand):
Building an e-commerce site and managing logistics may seem daunting, but they’re more accessible than ever. Numerous platforms offer easy-to-use website builders and tools to manage inventory and shipping.
The time to take control of your online presence and values is now. Stop handing over your profits and compromising your principles. Invest in your e-commerce and logistics, and watch your business thrive while staying true to what you believe in.
What steps are you taking to own your e-commerce and logistics and ensure alignment with your values?
Contact us today for help with your e-commerce.
