Sustainable growth and resilience in eCommerce all but require a multichannel strategy. But with multiple platforms vying for merchants’ attention, mastering a multichannel eCommerce strategy is no simple task.

This article draws insights from our interviews with industry veterans Scott Needham and James Thomson to outline the keys to a successful multichannel eCommerce strategy.

The evolution of eCommerce platforms

eCommerce has evolved dramatically from its early stages of straightforward online transactions into a sophisticated ecosystem. This dynamic development has produced not only a diversity of platforms available to merchants but also complex strategies required to leverage them for growth and sustainability.

Scott Needham, a seasoned entrepreneur with extensive experience building and scaling operations on Amazon through his ventures, BuyBoxer and SmartScout, sheds light on the need for adaptability. Needham’s journey aligns closely with Amazon’s evolution, emphasizing the dynamism of eCommerce platforms.

“When I started to see the problems that [my brother] was having,” Needham recalled, “it was all around scaling — something that software can help out a lot with.” That struggle highlighted the technical challenges and opportunities that have arisen from the growth of Amazon’s marketplace.

On the other hand, James Thomson, managing partner of Equity Value Advisors, provides an historical perspective on the growth of Fulfillment by Amazon (FBA). Reflecting on his role as Amazon’s first FBA account manager, Thomson offered insight into the program’s early days when FBA was still a concept trying to find its footing, revealing, “Back in 2009, 2008, FBA was a money loser for Amazon.”

He explained the initial skepticism and the strategic shifts Amazon undertook to make the program a key differentiator in the company’s arsenal. This initiative transformed how sellers and brands perceived Amazon, shifting from a logistical question mark to a prime (pun intended) avenue for scaling their online presence.

Thomson’s account of taking sellers on tours of Amazon’s facilities to showcase the vastness and capability of their logistical network marked the program’s turning point. “That convinced a number of sellers that, even if they had a decent-sized warehouse of their own, the fact that Amazon had a network of warehouses across the country and could support Prime — that was a major differentiator, and brands got excited,” he noted.

This strategic move from Amazon bolstered their value proposition to sellers and marked the beginning of a new era in eCommerce logistics, where speed and efficiency became critical.

From its early days of convincing sellers to embrace its fulfillment services to becoming the backbone of Amazon, FBA’s growth trajectory mirrors the broader trends seen in the eCommerce industry. This growth from simple online transactions to a complex, integrated ecosystem of platforms, services, and logistics networks underscores the need for merchants to remain adaptable and informed.

As new platforms like TikTok Shop emerge offering unique value propositions and engaging younger demographics through social commerce experiences, the lessons learned from Amazon’s evolution remain relevant and applicable to current trends. The importance of understanding platform-specific dynamics, leveraging data and technology for scaling, and adapting to changes are themes that resonate across the board.

Multichannel eCommerce Strategy for success

Mastering a multi-platform approach requires understanding each channel’s unique value and the tactics necessary to build and scale them.

Capitalize on each platform’s value

Leveraging a platform’s unique value proposition is vital for brands to diversify their online presence and tap into new markets. With their vast customer base and comprehensive FBA program, Amazon has long been the go-to channel for eCommerce merchants seeking reach and convenience. Additionally, the platform’s infrastructure provides an unmatched ecosystem for sellers to scale their operations efficiently.

However, the digital marketplace is no longer dominated by a single entity. Emerging platforms like TikTok Shop are carving out their niche, providing unique opportunities for brands to connect with younger, more diverse audiences. Unlike traditional eCommerce platforms, TikTok Shop integrates social commerce experiences, using the platform’s vast user engagement to create new routes for discovery and purchase.

Build and scale on Amazon

Amazon remains a critical component of a comprehensive eCommerce strategy despite other platforms gaining traction. From intricate logistics management to the complexities of FBA fees, success on Amazon requires a deep understanding of the platform’s ecosystem.

When discussing the nuances of building and scaling on Amazon, Scott Needham revealed how changes in Amazon’s FBA fees impact merchants:

“I mean, the most obvious change was actually in December, when Amazon announced that their new FBA fees, which kind of incentivizes you to help Amazon’s — they help their Amazon supply chain to be more efficient. So, they’re like, ‘Hey, you can ship to this one warehouse and it’s gonna cost you this much. But, if you ship to three warehouses, we’ll give you a discount.’ And so, some people were annoyed by this, but I just look at it as just common sense in that, if you’re going to be a good partner to Amazon, they’ll be a good partner back. And if you do this, your FBA fees don’t even go up.”

By aligning with Amazon’s logistics model and staying on top of fee changes, merchants can maintain their competitiveness and optimize their operations on the marketplace.

Want to learn more about FBA fees? Check MyFBAPrep’s Guide to Amazon Seller Fees.

Expanding beyond Amazon with a Multichannel eCommerce Strategy

Besides promoting growth, extending your brand’s presence beyond a single platform builds resilience in the ever-changing market. Platforms like TikTok Shop are strengthening their positions as powerful channels that offer a unique blend of eCommerce and social media, providing services that simplify the selling process for brands and consumers alike.

This integration facilitates a seamless transition for brands used to the comprehensive services of Amazon and opens up new avenues for engaging with a younger, more dynamic audience.

Scott Needham’s exploration into TikTok Shop illustrates the potential of such platforms to complement traditional eCommerce channels like Amazon: “We had a higher price on TikTok and then we would discount, you know, here and there, so, that’s not so far that—it works, you know? It’s just kind of—you’ve got to match the—it has to be a reasonable price of what people will pay.”

By embracing platforms that emphasize social engagement, brands can tap into social media’s virality and community-driven aspects, turning viewers into customers more organically.

The role of data and software in eCommerce

Data analytics and specialized software tools are essential for dissecting market trends, fine-tuning product listings, and, ultimately, driving sales. Scott Needham’s creation of SmartScout is a shining example of this. The tool exemplifies the utility of data in making informed, strategic decisions and serves as a beacon for other entrepreneurs looking to harness technology for eCommerce success.

SmartScout takes a deep dive into Amazon’s analytics to provide users with a detailed view of competitors, market dynamics, and potential areas for expansion. That level of insight is invaluable for sellers aiming to optimize their presence on Amazon and thrive in the competitive landscape.

“We’ve been tracking keyword data for two years now … so, when we matched that keyword data with, you know, the capabilities of AI, we’re like, ‘Well, we just have to build a listing builder,’ and so that’s what we did,” Needham explained.

Leveraging social media and podcasts for growth

Social media and podcasts have become formidable channels for broadening brand visibility and engaging potential customers.

Scott Needham’s strategic use of his podcast demonstrates how these mediums can be leveraged to cultivate relationships within the industry. He uses his podcast as a channel for growth and networking, showcasing content creation’s dual benefits: building brand authority and fostering meaningful industry connections.

“Because I had a podcast, when I went live, day one, we had 75 paying users. So, it was—we hit the ground running. And still, to this day, you know, we’re well past that. We’re close to 3,000 users, and it’s been a lot of fun,” Needham shared. This highlights the power of content marketing not just in attracting an audience but in converting listeners to customers.

Needham’s focus on the “Dream 100” strategy — targeting the most influential figures within the eCommerce ecosystem for collaboration and endorsement — further amplifies the effectiveness of social media and podcasts.

By prioritizing relationships and providing value to both his audience and industry peers, Needham crafted a content marketing strategy that transcends traditional advertising and positioned his brand as a front-runner in eCommerce thought leadership.

Brand consistency across platforms is key in a Multichannel eCommerce Strategy

Achieving and maintaining brand consistency on multiple eCommerce platforms can significantly impact a brand’s perception and success.

James Thomson commented on the difficulties brands encounter in ensuring their messaging and presentation remain coherent across diverse sales channels. That consistency is crucial for building consumer trust and recognition, making vigilant and proactive brand management indispensable.

“Once brands learn how to make that shift and grow up and recognize they have to adapt to a world where eCommerce can have a lot of negative impacts if they don’t actively manage the channel, those are the kinds of clients that I’ve enjoyed working with the most,” said Thomson. He noted the importance of brands actively engaging in online representation to ensure their message remains consistent, regardless of the platform. Brands must ensure their values, tone, and visual elements are uniform to reinforce their identity and facilitate customer recognition across different platforms.

The importance of adaptation and learning

Adaptation and continuous learning are paramount for staying competitive and innovative. Scott Needham and James Thomson both underscore the significance of embracing new opportunities for learning and the need for constant adaptation to thrive in eCommerce.

Needham advises merchants to look forward to embracing new learning opportunities as a way to stay ahead in 2024: “Really, it’s—what I wish I would have heard my second year of selling is that there is so much more to learn. And so just take—you should have a few learning opportunities every year.” He encourages merchants to remain open and proactive in pursuing knowledge and improvements to their multichannel eCommerce strategy.

James Thomson adds to this narrative by reflecting on the evolution of eCommerce strategies and the fundamentals that remain constant: “For the 16 years that I’ve been fortunate enough to work with brands that sell online—what I just finished saying around the things that brands need to control, 16 years ago, we were having the same conversations.” He suggests that, while the platforms and tactics may evolve, the core principles of brand management, customer engagement, and strategic adaptation remain vital components of eCommerce success.

By embracing new technologies, strategies, and platforms and remaining grounded in the foundational principles of eCommerce, brands can navigate the digital marketplace with confidence and agility.

Wrapping up — Multichannel eCommerce strategy success demands flexibility and fresh knowledge

Adopting a multichannel eCommerce strategy is challenging but holds immense potential for those who master it. Understanding each channel’s distinct advantages is the first step in crafting a robust online presence. That, coupled with the strategic use of data and technology, enables businesses to make informed decisions, optimize their listings, and stay ahead of market trends. Also, coherent and vigilant brand management maintains a uniform brand identity across all consumer touch points.

Perhaps the most vital takeaway, though, is to embrace continuous learning and adaptability. The eCommerce landscape continues to evolve, with new platforms emerging and consumer preferences shifting. These fluctuations make it imperative to be flexible, capitalize on changes, and integrate new insights into one’s business strategy.