Merchants who work in the retail segment are simply those who deal directly with the final consumer. This may offer many advantages, since working in this segment does not mean that it cannot be a great business.
Sales channels of retail segment
A sales channel is one that allows the consumer to get the desired product. There are mainly two types: direct and indirect sales channels, depending on whether there is or not an intermediary. As we focus on the retail segment, then we will definitely focus on direct sales channels. This means that there is no intermediary between the manufacturer or service provider and the customers, having a direct deal with them.
But, are there more sales channels in the retail segment? Yes, it depends on the environment in which the retailer operates. For example, a sales channel can be an online store through social media or online marketplaces, as well as traditional stores. These are some of the most prominent examples in the retail segment. Let’s take a look at each of them:
Online sales channels
It is no secret that we are in the digital age; so many entrepreneurs do not hesitate to start their own business through digital media, without a physical location, simply through a website.
This is a method that in fact many brands take into account, since more and more people spend a lot of time in virtual searches. In this sense, it is likely that someone is looking for the service or product you are offering online and in the middle of their search they find your page and decide to invest in it. It sounds very simple, but it takes effort to achieve it; however, it is a profitable investment in many cases.
In 2020 with the pandemic online sales increased enormously, but still in 2021, sales grew 9% more despite the lack of confinement. And now, in 2022, online sales continue to increase.
As many people spend hours looking at their social networks and searching on them, many SMEs and large companies have not hesitated to make their presence felt there, in order to reach the potential customer’s view and remind them that they are there to serve them and thus, motivate them to invest in what they offer.
Therefore, social networks have become an excellent advertising medium to publicize any brand. This strategy is also considered one of the most profitable ways to carry out a good marketing strategy.
The best is that social networks have adapted to this reality, so some of them offer the option of “virtual store” or “marketplace”. In this way, those who wish to search for any product can access there and get what they want to buy.
Social networks are not the only alternative when it comes to marketplaces, as some global markets offer retailers the opportunity to have a virtual space to showcase their products.
One example is Amazon that known for being one of the leaders in e-commerce. Many retailers turn to this website to have a space on Amazon’s website to showcase their products. Best of all, it is a highly recognized marketplace, so you can save a lot on advertising.
Similarly, you have other e-commerce, such as eBay, Etsy, Walmart, among others… The main thing is that you analyze which is the favorite commerce of your target audience and, thus, choose the most convenient medium.
Traditional sales channels
While online shopping is on the rise, it does not change the fact that there are still many people who prefer to make their purchases in physical stores. In fact, it is estimated that at least 60% of consumers continue preferring traditional stores.
Finally, keep in mind that these channels can work well together; for example, a retailer can have a traditional store, but at the same time have a web presence through a marketplace and social media. In this way, retailers boost their sales since their market niche is developed in the channels mentioned above. So, if you want to succeed as a retailer, you should take into account that it is not about choosing the sales channel you like most, but it is about analyzing who your target customer is and where you should focus on to reach their view.