As the CEO or founder of a DTC ecommerce brand, you're always looking for growth and ways to broaden your brand's reach. This growth journey is complex and ever-changing. More and more successful brands, especially those making between $3M and $50M in revenue, are finding opportunities to increase revenue and profitability by moving beyond just DTC sales (on Shopify) to list their products on online marketplaces like Amazon, Walmart.com, and Target.com.
In this article, we dive into why for DTC ecommerce brands, integrating online marketplaces into their sales strategy is advantageous and essential for tapping into omnichannel ecommerce growth.
By listing your products on online marketplaces such as Amazon, Walmart.com, Target.com, you gain instant access to millions of potential customers. In fact, last year American consumers generated 4.5 billion visits per month on these major online marketplaces, generating over $500B in gross merchandise value (GMV).1,2 Gaining access to these potential customers is foundational in adopting an omnichannel strategy, ensuring your brand's presence across key consumer touchpoints.
Marketplaces come with built-in trust and credibility, which are crucial for brands aiming to expand their omnichannel presence. A significant portion of consumers begin their search on Amazon (61%), Google (49%), and Walmart.com (39%) indicating the importance of these platforms in the consumer journey.3 Furthermore, the majority of consumers read reviews on Amazon (94%) and websites like Target and Walmart (91%) before purchasing a product, highlighting the crucial role of online marketplace ratings and reviews in purchasing decisions4.
Transitioning to online marketplaces offers invaluable learning opportunities. You can gather feedback from customers, refine your product listings, and gain insights into consumer preferences. This data is instrumental when you eventually expand your brand beyond Amazon or Walmart.com.
Marketplaces allow you to scale your business at your own pace. You can start small, with just a few products (typically your best sellers), and gradually expand your offerings as you gain experience and build a loyal customer base. This flexibility relieves the pressure to grow too quickly, which can be particularly advantageous for DTC founders.
Many online marketplaces operate globally, providing access to an international audience. The global ecommerce market reached $5.8 trillion in 2023, with~ 60% of online sales made by the top 100 marketplaces5. This is projected to grow to $8.0 trillion by 20276. By establishing a presence on international platforms, DTC brands can significantly increase their global reach.
Success on online marketplaces serves as a compelling case study when approaching traditional retailers. Retail buyers often seek brands with a track record of strong sales and customer engagement on Amazon, Walmart.com, Target.com, etc. Your marketplace success will increase your credibility during early negotiations with retailers.
For DTC ecommerce founders, integrating online marketplaces offers a comprehensive strategy for immediate audience reach and sets the stage for further growth. This approach not only ensures immediate access to a vast audience but also equips brands with the tools and insights needed for strategic scaling into new sales channels. As brands look to scale and penetrate retail and wholesale markets more systematically, a powerful tool comes into play: Omniscale.io.
Omniscale.io enables DTC brands to seamlessly expand into retail and wholesale channels, serving as the first B2B sales lead generation database dedicated to this purpose. With access to over 1,000 retailers and 13,000 buyers, it streamlines the go-to-market strategy for brand founders, CEOs, and sales professionals.
Omniscale.io is the world’s first B2B sales database for DTC brands. We empower leading DTC brands to scale into new sales channels and acquire new consumers, no matter where they shop.
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