How Brands Can Build Better Relationships With Retailers

In the modern age of shopping, there isn't a standard path to purchase. When consumers want to buy a product, they're not limited to purchasing from a brick-and-mortar store. They have countless options on the digital landscape to aid in their journey to check out.

From online marketplaces to social media platforms to mobile apps, today’s consumers have multiple channels available to them while they shop, and they're taking advantage of them. According to Insider Intelligence, forecasters expect multichannel sales to comprise close to 46 percent of all e-commerce sales by 2023, up from 40.3 percent in 2019. To meet consumers wherever they are, brands have adopted multichannel commerce strategies to ensure they remain top of mind with current and potential customers. However, being in multiple channels comes with challenges.

The Challenges of Multichannel Commerce

Although multichannel commerce has many benefits, including boosted sales, increased brand awareness and improved customer segmentation, some obstacles come with it. Selling in multiple channels means several channels to manage, know the requirements for, and understand the regulations of, which can quickly become overwhelming. Brands have to ensure they're providing customer support for different audiences, accounting for lead times in new regions, and anticipating demand increases from each channel.

A consistent strategy and brand presence across various channels can only be achieved through strong relationships with retailers. As brands adopt an operationally agile approach — the ability to modify and adapt operations and technology to a perpetually evolving business environment — to keep up with the ever-changing online retail space, they'll need to work in tandem with retailers to ensure they're providing the best experience possible to customers.

The Importance of the Brand-Retailer Relationship

The brand-retailer relationship is intrinsic to a healthy multichannel commerce strategy. This mutually beneficial partnership consists of brands depending on retailers to expose their products to a wide audience and retailers relying on brands to help generate revenue. When brands effectively collaborate with retailers, they can reap dividends such as triggering new orders, getting free promotion on their marketing channels, and prolonging the product lifecycle.

Nurturing a strong relationship with retailers involves brands focusing on actions that will benefit both parties and ease retailers' workloads. Here are three tactics brands can use to strengthen their relationships with retailers:

1. Think from a consumer perspective.

When working with several retailers, it's easy to look at each site and treat them as separate entities. However, it's better to take the consumer approach and view products through a channel-agnostic lens.

Consumers typically don't make purchase decisions based on specific channels during the online buying journey. They're going to multiple sites, gathering information and considering the best deals before deciding where to buy. The diversification of online sites gives them endless options to choose from. Knowing each touchpoint is an opportunity to convert consumers to customers can help brands equip retailers with what they need during the buying journey.

2. Leverage automation.

Keeping track of pricing, promotions and product listings can be a complex process when spread across multiple channels. Storing product data in varying locations and filling in retailer templates manually doesn't make sense in the age of automation. Automated product feed management — i.e., distributing and managing the digital listings of products, then optimizing those listings to perform better in different channels — can ensure products perform well across retailers' sites.

Another automated tactic to consider is shoppable media — any marketing content, such as an ad, social media post or video, that includes a direct opportunity to purchase products. With shoppable media, distractions are removed from the shopping experience, giving consumers immediate access to the product they want to buy exactly when they want it. By using shoppable media on marketing content, consumers have a seamless and dynamic connection to a brand's preferred retailers, strengthening the relationship.

3. Incorporate brand analytics.

When selling on retailer websites, issues are bound to happen. Product info can become outdated, price drops and increases occur, and customer reviews that require an immediate response pop up. But instead of waiting until these problems materialize, brands can be proactive by using brand analytics to monitor key metrics like product pages with too little content to convince uncertain buyers. Continuously monitoring metrics makes it easier for brands to get ahead and fix potential obstacles. For example, if a SKU is in high demand on a retailer's site, brand analytics can actively monitor when inventory is low and needs to be replenished before it goes out of stock. This saves time in the long run for retailers by enabling them to get ahead of problems that would arise otherwise.

As more brands take on multichannel commerce for their business, they'll need the support of retailers. Making sure the retailer relationship is strong and healthy involves brands thinking like a consumer, leveraging automation, and using brand analytics. Doing so can ensure brands find success across multiple channels and reach consumers where they are.

Link Walls is responsible for ChannelAdvisor’s digital marketing strategy, serving as a strategic consultant to leading brands and retailers, helping them with the strategy and solutions needed to successfully advertise their products online.