During the COVID-19 pandemic the need to sell online has become a necessity for many brands. Although the end of the pandemic will re-establish a balance between online in-person shopping, eCommerce has gained the attention it deserves as a strategic sales channel.
If your product portfolio is currently sold mostly via traditional channels, this article aims to provide a broad picture of what’s to be expected when expanding into eCommerce. I ventured into online selling in 2013 with very few resources and lots of obstacles to overcome, as an add-on to the brand management work I was doing. I want to share with you the strategic pieces of the eCommerce puzzle that brands should focus on to generate meaningful revenue from the online channel.
Unlike other eCommerce guides that are filled with affiliate links and self-promoting messages, this series tackles online selling from a broad, strategic angle; I hope the information will help brands with their omnichannel strategy, while avoiding some of the mistakes I made.
The first article covering the exhaustive topic of eCommerce focuses on creating a successful online product.
How to Sell Online: Your eCommerce Product Portfolio
At the core of your online strategy is a product that is suitable for eCommerce. The fit goes beyond its ability to convince the consumer to buy it without physical interaction; it involves its physical characteristics, functionality, price, packaging, as well as the before and after support.
In theory almost all physical products can be sold online. However, some products are an easier sell than others.
The ideal eCommerce product makes selling online an almost passive process, where the customer is able to make the purchase decision, receive the product, and use it with minimal or no intervention from the seller.
The information below is meant to be used as guidelines only. You can be very successful with a product that might seem less than ideal to sell online, if you can overcome logistic obstacles and consumer hesitancy.
Physical Characteristics
When it comes to the physical characteristics, the product’s dimensions and weight should allow it to be shipped via regular parcel, and stored at most warehouses with minimal storage fees. Your goal is to ensure the broadest and most cost-effective distribution for your products, which translates into fast order fulfilment and good margins.
Below is an example of Amazon size and weight limits imposed on products accepted in its warehouses, as part of the Fulfilled by Amazon program:
Boxes must not exceed these maximum size and weight requirements: No more than 25″ (63.5 cm) on any side and no more than 50 lbs 22.5 kg total.
Orders fulfilled via third-party (non-Amazon) warehouses do not benefit for the Prime service, with all the incentives it provides customers; as a seller of on oversized product you are potentially missing out on sales opportunities.
Same can be said about products that have special storage requirements (such as a specific temperature), or have a short shelf life. These products are less likely to be accepted at third party warehouses.
Selling a non-standard product online, while not impossible, is more challenging. An oversized/heavy product requires special transportation arrangements, and freight costs that can exceed the actual product value. As a result, it will be difficult to price it competitively and profitably.
If your online product portfolio includes products that are oversized or have special transportation and storage requirements, your best bet is to provide fulfillment from your own warehouse(s).
Features and Functionality
Since customers are not able to physically interact with your product, its features, benefits and usage have to be clearly illustrated and explained in such a way that inspires confidence, and eliminates the need to touch and feel the product. A complicated product, or one that requires individual customization will be more difficult to sell online.
Let’s take bicycles for example. Although there are stores that sell bicycles exclusively online, many potential customers are reluctant to spend an important amount of money on a product they’ll probably own for many years without seeing and trying it first. Bicycles, especially higher end models, require custom fitting and adjustments, that can best be made in person. As a result, selling this type for product online, while not impossible, requires active involvement, to ensure the product is what the customer wants and avoid unnecessary returns.
Bikes accessories, on the other hand, are very popular online products, as they fit almost any bike style and brand.
Packaging
Product packaging has a triple functionality: to protect the product, to allow for easy storage and inventory, and to build the brand. In the online world, these attributes are of critical importance, which can present challenges for brands distributed via more traditional channels, where packaging is not as important.
eCommerce allows brands to quickly expand their geographical. With this benefit comes the challenge of products being shipped long distances, often crossing borders and even continents. Hence the need for packaging that protects the product during transit, and ensures it is received undamaged.
Moreover, packaging plays a safety role during manipulation by the customer. It must ensure the customer does not get hurt while removing the products from its packaging.
Special preparation requirements are needed if you plan to sell sharp objects, baby products, products that are packaged in polybags, and many others. It’s best practice make checking special packaging requirements for your category as part of your online plan.
There are also legal and commercial requirements that packaging has to comply with for crossing international borders, inventory and tracking. Here are the most common elements required on packaging:
- Merchant SKU
- UPC/EAN/ISBN or other external barcode
- Product description
- Country of origin
- Quantity per package
Then, of course, there is packaging as a brand building tool.
Packaging is part of the intimate interactions consumers have with brands. For brand owners, packaging offers a great opportunity to communicate what your brand stands for. Great packaging makes customers feel good about choosing your brand.
Brands can turn packaging into an effective marketing tool by writing inspiring copy, carefully selecting packaging materials (a common practice among eco-friendly brands), or through unique design and functionality. A while back I wrote an article on the importance of packaging in building the brand; you can check it here.
In conclusion, a product that can successfully be transitioned online should meet the following criteria :
-its dimensions and weights should not limit its ability to be broadly distributed. Avoid bulky and heavy products.
-its features and use should be easy to understand by customers without requiring in person interaction. Avoid complicated products.
-its packaging should provide protection, traceability, and marketing, Avoid packaging shortcuts.
In the next article in the “How to Sell Online” series we will be focusing on how to price your products for high turnover and good profits.
Photo credit: Sari Montag on Flickr
Leave A Comment