How To Become A Well-Known Ecommerce Accelerator
Without a doubt, the eCommerce market is growing by leaps and bounds with each passing day. As per statistics, the US eCommerce sales alone are expected to cross $1 trillion for the first time. Overall worldwide sales will cross $5 trillion and by 2024 it’ll cross $6 trillion. These stats are proof that customers are leaning more towards eCommerce sales than physical outlets.
The year 2021 was known as the “year of brand aggregators” and well, it sure was one. But this year 2022 is more like the “year of brand value accelerator”. There’s a very subtle difference between the two but it’s still important. Aggregators are focused on “purchase” only. For example, FBA aggregators are basically new companies that are looking forward to investing in Amazon-focused brands. They use different strategies to grow the brand and its sales. On the other hand, brand accelerators are like more mature companies. Its main focus is all on mastering the leading commerce platforms, especially Amazon.
In simpler words, eCommerce accelerator focus more on forging partnerships with brands instead of purchasing them. They have all the supply chain know-how and they share their product development expertise to get a share in the profit.
What Exactly Is Ecommerce Acceleration?
Ecommerce acceleration is all about applying and using data-driven technologies and expertise to increase revenue growth on multiple channels like Amazon, eBay, and even Tmall. People and companies who provide such services are known as eCommerce accelerators.
If you want to become an accelerator, you need to know that the simple formula here is: Revenue= traffic x conversion x price. The accelerator uses technology-driven data to increase conversion and traffic on the product listings. The data is basically all the on-page and off-page variables on each one of the marketplaces or digital channels.
Now it’s true that a brand can work on the acceleration process on its own but at the same time, it’s a fact that a typical e-commerce team is small. Most importantly, they lack resources and the right technology to increase the traffic on the product listings. This is where an accelerator comes into action.
Can Ecommerce Accelerators Help Brands Grow?
Yes, they can and that is exactly what their job is all about. Selling third-party products online is what an accelerator does. From managing the major marketplaces like Amazon to opening up different new channels like DTC and D2C. Not just this but an accelerator is also supposed to manage day-to-day operations, the promotion of the products, logistics, and even marketing.
Nowadays, modern accelerators purchase the inventory upfront and then become distributors on specific platforms. This model is quite attractive for different brands as it cuts down the hassle of dealing with day-to-day operations of the marketplace sales and commerce websites.
After purchasing inventory and becoming a distributor, the accelerator then gets started with the whole optimization process. The process includes; optimizing product images, optimizing product descriptions, and then figuring out the retail price of the products as per the channel.
To become an accelerator, you also have to master the art of monitoring and enforcing MAP-Minimum Advised Pricing. What it does is that it helps ensure that the margins aren’t ever eroded by other sellers. Moreover, a successful accelerator will always have an omnichannel approach and an even bigger focus on geographies instead of just some specific sales channels.
How Can Ecommerce Accelerators Displace Brand Aggregators?
It’s true that accelerators and aggregators aren’t competitors and they both have different jobs but to become an accelerator you first need to know and understand what you’ll be bringing to the equation.
Here’s what an accelerator does;
1-Filling The Gaps Efficiently
With the passage of time, when small businesses grow, they develop ad hoc needs. Mostly, businesses are more focused and concerned about product development and marketing which is why they then have to hire professional consultants which of course is time-consuming and costly too. This is the main gap that an accelerator can fill easily. From scaling in HR to providing dedicated and competent teams that can help with day-to-day operations and even logistics.
2-Understanding Customer Lifetime Value
Small brands are mainly focused on making marketing investments. On the other hand, the big brands focus more on the luxury of understanding the values of their repeat customers and then they make changes to their strategies that suit their sales the best. Now for the long-term success and growth of a brand, it’s of utmost importance that you understand the lifetime value of a customer and bridge all that gap between the one-off metrics. This is where an e-commerce accelerator comes into action. Such factors can help brands make more strategic decisions about their short-term and long-term investments.
3- Creating A Balance Between Transaction Data And Action
One of the most important things that brands need is data but unfortunately most brands out there are data-poor and have very little know-how about their customers. An Ecommerce accelerator provides two major types of data; action and transaction. Both are of utmost importance for a brand and they can work wonders here, especially because the data here can help partners optimize their investments.
Brand success is not just about increasing your product portfolio but you are supposed to know when and how to do it. Now what an accelerator does here is that he uses his data by observing the customer buying pattern and the sales of the brand to determine the kind of products and categories that’ll be best suitable for the brand and will bring long-term success to it.
The long story short of an Ecommerce accelerator here is that he/she is responsible for the sustained growth of a brand. Acceleration is already becoming mandatory this year so if you want to become one, now is the time for it!