Major Automotive & Powersports Brand Makes Successful Transition to 3P Selling With ChannelAdvisor

01/09/2020

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If there’s one constant in the ever-evolving e-commerce industry, it’s change. Strategies that prove to be successful one month may need to be altered the next, and the competitive landscape can change by the day. For one ChannelAdvisor client, being empowered to adapt to these rapid shifts has made a tremendous difference in the company’s ability to scale and grow.  (Download the PDF version.

THE CLIENT

This well-known global tech company produces specialized electronic equipment for the automotive, marine, recreational vehicle and powersports industries. It’s been creating high-quality products for several decades, always with the goal of making lives easier and keeping people safe.

According to company executives, staying focused on two-step wholesale distribution led to tremendous growth over the years. The company reports it was able to dominate more than 70% of its niche market share, and eventually made a successful move to brick-and-mortar retailing.

Then e-commerce came along, and things started to change. As more and more transactions took place online, the company says it became clear that yet another transition was in order.

THE CHALLENGE

For a while, continuing business as usual appeared to be the best approach for the business. But eventually, the team realized that interacting directly with online consumers would be necessary if the company was going to maintain its strong position of influence and trust.

During an interview with ChannelAdvisor, the team described a pivotal day when leadership realised exactly what needed to happen next.

“There was an ‘aha’ moment among the senior members of our team that we really needed to take a much more hands-on approach and control our destiny in e-commerce,” they said. “We needed to go directly through the platform and not let anyone else dictate what took place with our brand.”

It was the same day a decision started to take shape — one that would lead the company to work with e-commerce experts and begin building a new kind of relationship with consumers.

THE CHANNELADVISOR SOLUTION

The team had been hearing about ChannelAdvisor’s unique mix of e-commerce expertise and advanced technology for years. So when the decision was made to pursue a direct-to-consumer model, leadership knew exactly who to turn to.

“Initially, we weren’t ready for what ChannelAdvisor had to offer,” they explained. “Fast forward a few years, and the team knew exactly when the time was right.”

As the company started to create a new approach to digital marketing and online selling, the team leaned heavily on ChannelAdvisor’s robust set of tools and services. Specifically, the client leveraged:

  • Managed Services for Marketplaces for guidance on successful third-party (3P) selling on marketplaces including Amazon, eBay and Walmart
  • Digital Marketing to help drive sales and promote products on Google, Facebook, Bing and Amazon Advertising 
  • Where to Buy to send consumers straight from the brand’s website and digital campaigns to preferred retailers, marketplace listings and nearby brick-and-mortar stores
  • Connector for NetSuite® to help ensure accurate product availability and up-to-date shipment tracking

The combination of cutting-edge tools and specialised assistance was precisely what the client says they needed to make a seamless transition to direct-to-consumer marketing and selling.

“What led us ultimately to ChannelAdvisor was the seamless support,” the company’s representatives said. “Today, we’re more capable of running a self-service model than we were a year ago, and the Managed Services function was ideal. We need that extra set of hands to support our efforts.”

THE RESULT

Within the first year, the brand was well on its way to successful third-party selling.

“[We’re] most proud of the fact that within 12 months, the company is operating at the pace and scale it desired at the onset of its relationship with ChannelAdvisor,” the team said.

We’re in the last stages of a hybrid model. We went from a handful of items that were selling 1P to now having roughly 50% of the budget transitioning from 1P to 3P. It’s been successful.”