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Online distribution frees you geographically. Where you might have been selling your product or service locally, opening an online distribution channel means you can sell it on a global scale, which is an effective way to grow your business and boost your brand.<\/p>
Identify what you can sell online<\/h3>
You\u2019ll have an online presence with your website and social media platforms, and if you\u2019re getting good sales locally, it could be time to set it up as an e-commerce site and your own online distribution channel.<\/p>
Sell more than your product<\/h4>
With online distribution, you can open up your offering so that you\u2019re selling more than just your product.<\/p>
For example, if you\u2019re selling power tools, you could also offer how-to videos via YouTube. Once your YouTube channel is operating, you can extend the how-to videos into information that people subscribe to, via e-newsletters, blogs, and social media.<\/p>
You can also deliver your marketing material online through content marketing. Your website and social media platforms work together here, with social media driving traffic to your website where customers can access your content.<\/p>
You can also expand the range of what you\u2019re offering. For example, if you\u2019re operating a gym, customers can not only join online, but you could also be selling workout supplements and clothing as well as instructional videos that you\u2019ve bought via a wholesaler.<\/p>
Decide what the best channel is<\/h3>
Once you\u2019ve identified the products and\/or services you plan to offer through online distribution channels, it\u2019s time to decide which of those channels suits you best.<\/p>
Third party distribution channels<\/h4>
This means selling your product through an already-established online channel, such as Amazon, eBay or iTunes. You might want to consider this before setting up your own channel, so you can determine if the demand is there.<\/p>
Third parties already have payment options, warehousing, customer service and shipping already set up, so you don\u2019t need to worry about them. What you should focus on is whether people want to buy what you\u2019re selling online. If your sales are encouraging, then it could be time to think about selling your product online yourself.<\/p>
For example, if you\u2019ve created an application or game for smartphones, you could sell it on iTunes (owned by Apple) initially, to measure demand.<\/p>
The drawbacks of using a third-party online distribution channel are that they\u2019ll take a percentage of your sales as fees, and you don\u2019t get the same customer engagement. As far as they\u2019re concerned, they\u2019re buying from Amazon, and you don\u2019t get to connect with them the same way you would if they\u2019re buying from you directly.<\/p>
Your website<\/h4>
If you\u2019ve got what\u2019s sometimes known as a \u2018brochure\u2019 website \u2013 that is, one that briefly outlines who you are and what you do \u2013 then it could be time to redevelop it into an online distribution channel \u2013 an e-commerce site:<\/p>
- Your website is \u2018open\u2019 24\/7, so potential customers can browse, research, book and buy whenever they want \u2013 not just between 8 am and 5 pm.<\/li>
- A website means you can reach people worldwide. You could easily find yourself with a number of international customers, which could leverage into exporting opportunities.<\/li>
- Better customer experience \u2013 people like buying products online, the option of an online booking system, and researching before they buy.<\/li>
- Reducing costs \u2013 for example, if you\u2019re selling a skin-care range, you\u2019re saving on shelving, displays, rent, and rates. You\u2019re also saving on staff costs because you don\u2019t need to run a bricks-and-mortar store.<\/li><\/ul>
Set up payment systems<\/h3>
You can take payments online with an e-commerce site, allowing customers to buy products from anywhere. PayPal makes it easy for customers to pay you online, but it\u2019s just as effective to get a credit card option set up on your site.<\/p>
Talk to your bank about the payment options they have available. Mobile and online solutions are becoming an increasingly popular option, especially for online distribution channels. It doesn\u2019t all have to be done with a credit card.<\/p>
Set up delivery systems<\/h3>
If you\u2019re using a third-party distribution channel, these will be set up for you, since they\u2019re the ones doing the actual shipping, and they\u2019ll have delivery systems in place.<\/p>
When setting up your own, it depends on what your product or service is. For example, think about when you might have bought a book from Amazon. There are terms and conditions attached to the sale that you must read and accept before you make payment, and when the book\u2019s delivered, there\u2019ll be an invoice included.<\/p>
Review what you\u2019re selling and decide on what customer contracts or service level agreements need to be in place so that you\u2019re covered if there\u2019s a mistake with shipping.<\/p>
Summary<\/h3>
Getting your products or services onto the global stage is an effective and relatively easy way to grow your business and increase sales. Not only that, but you\u2019re going to expand your customer base to include many international customers, and that\u2019s going to be a great boost for your brand. Selling your offering online also reduces costs, especially rent and staff expenses, so you\u2019ll be improving your cash flow. Online distribution channels are also a great way to start out if you\u2019re planning to move into exporting since you\u2019ll get a feel for the international marketplace and make important contacts.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t