In the age of online shopping and social media, where customers can encounter your brand in countless ways, ensuring brand control and consistency is critical. Channel diversification and maintaining a cohesive brand message across all platforms builds trust, recognition, and, ultimately, success.

Our recent interview with James Thomson, managing partner of Equity Value Advisors, revealed invaluable advice for this challenge, drawing on his extensive experience in the eCommerce space.

Navigating channel acquisition and diversification

Choosing where your brand lives online is like picking a neighborhood for your physical store. James Thomson believes in Amazon’s power to boost a brand’s online presence, whether that’s through making sales, running ads, or keeping tabs on the competition for market insights.

Why Amazon can’t be ignored

Amazon has ballooned into a behemoth in retail and digital advertising. Their vast user base and sophisticated search and recommendation algorithms make them a gold mine for brands looking to reach new customers.

Thomson recognizes that unique blend of visibility, credibility, and logistics is hard to match. But listing products on Amazon is only half the work; brands must also understand how Amazon works and use the platform to their advantage, whether that’s optimizing for Amazon’s search engine, utilizing Amazon ads, or leveraging the Prime badge for greater visibility.

Diversifying from Amazon

Reliance on a single platform, even one as dominant as Amazon, is the proverbial “putting all your eggs in one basket.” Although it’s been the cornerstone of many successful online businesses, diversification is becoming increasingly important for brands looking to secure their future and tap into new growth opportunities. Moving off of Amazon is attractive to brands for a number of reasons.

Moving to DTC channels or other marketplaces requires brands to learn new tricks. The process of building a presence outside of Amazon’s ecosystem is complex. It involves brands attracting traffic independently, managing their logistics, and building direct relationships with their customers.

Diving into DTC and other marketplaces

The transition to DTC and other marketplaces is exciting but daunting. Brands are able to control their narrative more directly, engage with their customers on a personal level, and potentially enjoy higher margins. However, it also requires a solid grasp of digital marketing, from SEO to social media advertising, as well as the ability to handle logistics and customer service internally.

Thomson hints at the necessity for a strategic approach during this transition. The focus should be to create a cohesive brand experience across multiple channels. Brands need to be savvy about where their audiences spend time online and tailor their strategies accordingly. That might mean prioritizing certain marketplaces over others or doubling down on DTC for products that benefit from a closer brand-customer relationship.

Mitigate risks

Amazon’s marketplace is highly competitive and subject to frequent changes in policies, fees, and algorithms. These changes can significantly impact sellers’ visibility and sales (and, thus, profitability).

Diversifying sales channels reduces dependency on any single platform and so mitigates risks associated with unexpected changes or disruptions. Having multiple channels ensures stability and continuity for your business.

Reach new audiences

Different platforms attract different demographics and user behaviors. By expanding beyond Amazon, brands can reach new audiences that may not be as active on Amazon.

With its unique blend of content and commerce, TikTok Shop taps into a younger, highly engaged audience that values authenticity and entertainment alongside shopping. This diversification allows sellers to broaden their customer base and increase brand awareness across varied segments.

Enhance brand control

Selling on Amazon limits your branding and customer interactions. In contrast, diversifying into other platforms or constructing a direct-to-consumer (DTC) channel via a company website allows for greater control over brand presentation, the customer experience, and communication.

This enhanced brand control cultivates stronger buyer loyalty and repeat business thanks to personalized experiences and direct customer engagement.

Exploit the unique features of different platforms

Each platform has specific features and selling points that cater to various markets and content types. For its part, TikTok Shop leverages the power of short-form video content and live streams to drive sales, offering a more immersive and engaging shopping experience.

By developing a presence on multiple channels, companies can take advantage of these unique strengths to better showcase their products, tell their brand story, and connect with shoppers in ways that may not be possible on Amazon.

Financial protection

Diversification opens new revenue streams and so reduces the impact of seasonal fluctuations or platform-specific issues on overall sales. It provides a safety net that can help sustain a business through tough times or when faced with challenges on their primary platform like Amazon.

Crafting a multi-channel strategy

The key takeaway from Thomson’s interview is the importance of a multi-channel strategy. Brands can’t afford to put all their eggs in one basket, but neither should they spread themselves too thin.

It’s about finding the right mix of channels that allows for growth, engagement, and sustainability. That requires companies to be flexible, willing to learn, and ready to adapt to the ever-changing digital marketplace.

Implementing effective brand strategies

Thomson’s experience in brand management on Amazon reveals a crucial aspect of success in the digital marketplace. Working with brands to reclaim their presence from unauthorized sellers, he’s learned the power of strategic brand control.

Reclaiming brand presence on Amazon

Unauthorized sellers can be a significant thorn in the side. They often undercut prices, offer subpar customer service, and dilute a brand’s image.

Thomson’s approach to dealing with these challenges involves a proactive stance on brand management. “I’ve had many brands … take back control of that channel,” he stated, highlighting the importance of taking decisive action to protect one’s name.

This not only involves legal measures but also embracing Amazon’s brand protection tools and developing a comprehensive strategy that includes monitoring unauthorized sellers and enforcing company policies.

Consistent branding across channels

Brands must maintain a consistent identity across all platforms, not just on Amazon. Uniformity is especially vital for businesses expanding from traditional retail into eCommerce.

Thomson emphasizes the importance of a unified brand message, explaining how consistency here can transform a company’s online presence. It ensures customers receive the same message and experience whether they shop on Amazon, the brand’s website, or any other digital platform.

Making the leap from physical stores to online marketplaces can be a challenging transition. It requires a keen understanding of digital marketing, content creation, and customer engagement strategies. Thomson’s work with his clients underlines the need for brands to adapt their messaging for digital platforms and to communicate their core values and unique selling propositions clearly across all channels.

The mistakes to avoid for brand consistency

Brand consistency is vital to sustain consumer trust and loyalty. Common pitfalls, however, can undermine a company’s efforts to maintain a cohesive online presence.

Underestimating unbranded search

One of the cardinal mistakes businesses make is overestimating the power of their name alone to attract traffic on platforms like Amazon. Thomson advocates for the importance of engaging with organic search strategies, emphasizing that “most search activity on Amazon is not branded.”

This reveals a significant oversight: Many brands neglect to optimize their listings with generic keywords that potential customers are more likely to use when searching for products. That strategy is essential for capturing the attention of shoppers who may not be familiar with the company or who are in the early stages of the buying process and haven’t yet decided on a specific brand.

Neglecting continuous monitoring

Another stumbling block for brands is failing to monitor their online presence constantly. The digital marketplace is dynamic, with changes happening rapidly. Unauthorized sellers can create duplicate listings or alter existing content, leading to inconsistencies in brand messaging and potentially diluting a business’s identity. Vigilance is crucial not only for spotting these schemes but also to ensure the brand remains relevant and responsive to customer feedback and market trends.

Both of these mistakes highlight a broader theme in digital brand management: the need for an active, engaged approach to maintaining brand consistency. By addressing these common pitfalls — optimizing for unbranded search and committing to ongoing monitoring — brands can better safeguard their reputation, enhance their visibility, and ensure a cohesive and compelling shopping experience across all digital channels.

Global market investment and selection criteria

When discussing eCommerce investments, James Thomson pushes for a strategic and insightful approach. He zeroes in on the core aspects that drive consumer behavior globally: the desire for a wide selection, competitive pricing, and speedy delivery.

These elements are fundamental to the success of any eCommerce venture, and Thomson’s investment philosophy reflects a keen understanding of these consumer demands.

Enabling eCommerce capabilities worldwide

Thomson’s investment strategy isn’t solely focused on injecting money into successful businesses; it also aims to foster the infrastructure that enables eCommerce to flourish across different regions.

He recognizes the importance of cultivating capabilities that cater to “the universal consumer demand for selection, competitive pricing, and rapid delivery.” This perspective is crucial, especially when considering the diverse challenges and opportunities present in various global markets.

By supporting companies that enhance eCommerce infrastructure — whether through logistical solutions, marketplace platforms, or technology innovations — Thomson strives to help develop an ecosystem that makes online shopping seamless and accessible to consumers everywhere.

If you’re looking to streamline your own eCommerce operations and reach new global markets, MyFBAPrep can be your partner in success.

Spotting untapped opportunities

Thomson’s involvement with companies that address specific market gaps underscores the significance of innovation and precise market strategies for eCommerce success. This approach requires anticipating future trends and understanding how consumer behaviors might evolve.

“Identifying unique niches in global markets is key to successful eCommerce investments,” Thomson pointed out, highlighting the value of staying ahead of the curve and investing in businesses that are poised to capture emerging market opportunities.

Investing in untapped markets and innovative business models requires a deep understanding of the local consumer landscape as well as a global perspective on eCommerce trends. Thomson’s close monitoring of these areas exemplifies the forward-thinking approach necessary to succeed in the dynamic world of online retail.

Wrapping up — Embracing change and innovation in eCommerce

Thomson’s insights draw a roadmap for brands aiming to excel in 2024 and beyond, highlighting the necessity of a proactive, informed approach to digital commerce. Navigating the complexities of eCommerce requires a delicate balance between steadfast brand consistency and agility to embrace change and innovation. The discussed strategies will enable brands to stay on their toes and not only survive but flourish in the digital domain.