Which is your most profitable sales channel?

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Herts, England United Kingdom
Andy
Kudos: 11,661
Joined: Jan 1, 2001
Which is your most profitable sales channel?
11 Feb 2015
A lot of Web Retailer members sell on multiple channels (eBay, Amazon, other marketplaces, their own store etc) but which one is most profitable for you?

Is your most profitable channel the one where you get the most orders?

Do you want a different channel to become your most profitable one?

Love to hear your thoughts
Andy Geldman, Web Retailer
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Midlothian, VA United States
Jax Music Supply
Kudos: 2,387
Joined: May 25, 2009
Re: Which is your most profitable sales channel?
11 Feb 2015
@Andy

My own websites are the most profitable. However, I'm not spending anything on advertising and thus have relatively small amount of traffic. After that, it would be a site called Reverb.com, which is a specialty site to my niche. Both of these have low fees. Ebay is next, then Amazon.
Nottingham United Kingdom
Bigian13
Kudos: 2,316
Joined: Feb 21, 2014
Re: Which is your most profitable sales channel?
13 Feb 2015
Again, own website is the most profitable, followed by Play, Amazon and then ebay.

On turnover it is ebay, Amazon, own website and then Play.
E-commerce , love it or hate it, that's why we are here
Supplier
Israel Israel
Valigara
Kudos: 123
Joined: Aug 28, 2014
Re: Which is your most profitable sales channel?
17 Feb 2015
For our clients it is very different. Normally we expect the website to be most profitable, with that in many cases the high websites' CPA causes eBay or Etsy to provide better ROI.

I would stress 2 parameters:

1. Be "native" for the channel. If you try selling jewelry on NewEgg - probably waste of time. Jewelry on Etsy - thumbs up. See if your items look naturally in the channel. Educating your potential buyers to new products type is very expensive.

2. The most crucial part in creating higher profit is "playing by rules". This means, if the website is your target, don't try avoiding ABtesting, PPC, Google, CRO and all the classical stuff. If you go for Etsy - work with the social part, content marketing etc. eBay - improve your logistics, work hard to improve your sell-through and click-through...

TO summarize, the channel is less important than the dedication to it and the knowledge of rules. And probably only 5% of sellers use 50% of the tools they have on each channel.

Best,
Igor Nusinovich, Co-Founder & CEO

Valigara Online Jewelry Manager
Multi-channel eCommerce for Jewelry and Diamonds
florida United States
Trushar
Kudos: 32
Joined: Feb 17, 2015
Re: Which is your most profitable sales channel?
20 Feb 2015
i would prefer doing business on different marketplaces in compare to have own website because on that if we can do more can get more opportunity than own website. there are five big marketplaces which are great to do business Amazon, eBay , Sears, Buy.com , and New-egg etc

i would like to give more focus on Amazon because i feel it has more potential to deliver high profit in comparatively others

stores.ebay.com/smack-tom/
Cascais, Portugal Portugal
Five Million Dollars Site
Kudos: 93
Joined: Feb 20, 2015
Re: Which is your most profitable sales channel?
20 Feb 2015
It really depends on several things. What client are you trying to reach, what product you are selling, and / or how, do you want to approach your possible clients.

If I want a higher end hi fi system, or tv set, or computer, or whatever, I do not go to ebay or amazon, just like I would not go to the hyper market, I would go to a specific shop.

If you can afford and/or, you are willing to spend a large amount of money on good SEO services, your own shop, should be a good answer.

If you want to sell, but you are not "worried" about, the type of client you want to reach, you should go to ebay or amazon. (not that they do not offer excelent service, THEY DO) But their client, tends to be more generalized.

And, once you go on ebay or amazon, it will be difficult to go back, to a more "selected" kind of client.

Bottom line is advertizing. With good advertizing, you can make profit everywhere.

EWT-Digital
Extreme Workstation Toolbox - Crowdfunding Campaign
igg.me/at/ewtdigital

[Last edited: 21 Feb 2015]
Supplier
Seattle United States
HydraSale
Kudos: 40
Joined: Feb 19, 2015
Re: Which is your most profitable sales channel?
20 Feb 2015
Everyone has some excellent points! This question can be looked at from many different view points.

From our standpoint, our most profitable channels have been marketplace selling based on automation and emerging online marketing tactics within each Amazon, eBay, NewEgg, etc. This profitability is really based on our time and expertise (which as a small company is a major cost component that many overlook). Time can be used for many different business tasks, e.g. sourcing more profitable products, manufacturing, private labeling, etc.
Josh Nelson
Co-Founder & President
Seller Actions by HydraSale
www.hydrasale.com
206-599-9016
josh.nelson@hydrasale.com
Portland, Oregon United States
Thomas Bailey
Kudos: 140
Joined: Feb 13, 2015
Re: Which is your most profitable sales channel?
3 Mar 2015
Our most profitable website is our own. Afterwards, it would be Amazon.com, eBay, Amazon.ca, then Rakuten.

-Tommy Bailey
Kind Regards,
Thomas Bailey
Marketplace Specialist
London United Kingdom
Matt Thorpe
Kudos: 204
Joined: Oct 15, 2014
Re: Which is your most profitable sales channel?
14 Apr 2015
I run another business where we sell protective laptop bags for commuters. Our website is the profitable channel if you exclude the courier charges but we offer free next day delivery so that hits the margin a little. Our customer service feedback is excellent though so it is worth it because someone can order up until 4pm.

Amazon is our next best channel and is excellent for this type of product because of the sheer volume of shoppers. The reviews are a great conversion tool too.

We use eBay more to clear old stock at a lower price. In my experience, eBay shoppers tend to be looking for a bargain, sometimes the offers that come through have the cheek of a car boot sale.

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