Launching a new product is a significant undertaking and often includes developing and refining the product, establishing the branding, designing the packaging and building distribution networks and relationships. Whether you are only selling online or want to also appeal to a retailer for brick and mortar, there are certain things you will need to get right. However, many startups encounter obstacles early on because they haven’t properly prepared for the supply chain complexities and best practices that support successful online sales.
To help navigate these challenges, here are five proven strategies to optimize ecommerce success and appeal to retailers:
1. Assign a Unique Identification Number to Each Product
To streamline listings and supply chain operations, provide each product that you sell with a globally unique identification number. Many leading online marketplaces and retailers now require products to be identified with a standardized GS1 Global Trade Item Number (GTIN). A GTIN is embedded in a barcode (e.g., UPC) for use across both digital and physical sales channels. This identifier helps ensure accuracy in tracking products within inventory systems, supply chains and across online platforms. It also validates product authenticity, helping prevent knockoffs from usurping your sales.
Anne Klassman, founder of Undressed salad snack bars, found that having GTINs assigned to each product has become a key part of how she shows she’s ready to work with multiple retailers. She notes: “Anytime I’m submitting my products to be sold in a new store, I’m able to organize all my products and the data associated with it by their GTIN. That number is the key to everything, especially when I’m working with packaging designers or other partners. You only have to assign that GTIN once, create the barcode, and then it’s good for whoever you’re working with.”
2. Invest in High-Quality Imagery
High-quality images highlighting product features can make a huge difference in boosting its appeal.
A 2022 survey revealed that 30% of U.S. consumers avoid purchasing products online if images are absent or of poor quality. Make sure your product images are high-resolution and tailored to meet ecommerce retailer specifications, including minimum resolution standards for optimal viewing on both desktop and mobile screens. Consult any existing ecommerce partners before creating the images to meet their requirements.
Provide the most accurate color representations as possible for the product as well, even though some screens may degrade the depiction; when the actual product color doesn’t match up with the online view, many customers will return it. Include a graphic that clarifies product dimensions, so customers can ascertain if it will fit where they want to use it. Adding features like 360-degree photography or videos can further elevate your listings and increase the likelihood of purchases. Having fundamental elements, on lock, like imagery, can boost your business’ appeal to other retailers.
3. Provide Comprehensive Product Information
The same survey found that detailed product descriptions are highly valued by U.S. consumers. Ensure your listings offer all relevant information, such as dimensions, weights, assembly instructions, sizing guides and more. For even greater customer engagement, pay attention to consumer trends and include information to address growing demand for transparency and responsibility: sustainability attributes, materials sourcing, fair trade practices, etc.
Differentiate your product from competitors by highlighting its unique features and alignment with consumer values.
4. Predict Demand Accurately
Avoid running out of stock, disappointing customers and losing sales by ensuring adequate inventory, particularly ahead of major sales events. Online marketplaces often penalize brands that do not keep up with demand, because they cater to shoppers looking to buy “now,” not later; out-of-stocks can cause the marketplace algorithms to lower your product listing in favor of more consistently available alternatives. Another study found that 67% of shoppers choose online retailers based on shipping costs and speed, and 40% are most interested in one-day shipping; so the platforms are incentivized to push the products that can meet those demands.
Plan realistically; conduct in-depth research and competitor analysis to inform your projections. Collaborate with sourcing experts to manage lead times and ensure you have enough inventory ready for quick delivery. Running out of stock or experiencing shipping delays can frustrate customers and damage your reputation with retail platforms, harming your sales potential.
5. Plan for Growth
Ensure you’re prepared for growth by having a clear strategy for product expansion. Licensing a GS1 Company Prefix, the number that identifies you as the owner of a brand, is used as the building block for creating GTINs and barcodes for all of your products as you scale your business. Small businesses that do not use GS1-issued GTINs run the risk of having their product listings hidden or rejected by retailers or online sellers. It also helps you uniquely identify logistics units and locations where the product is produced, stored, handled, stocked and sold. The GS1 Company Prefix holds the keys to product traceability, supply chain visibility, counterfeit prevention, inventory management and more.
Andrew Jacobs, president of JAM Paper & Envelope has used multiple GS1 Company Prefixes to grow with his business. “When you have multiple pack sizes, for example, is that you have to have multiple barcodes associated with these different packs,” said Jacobs. We have licensed several more GS1 Company Prefixes over the last year or two, and started to apply them to those different pack sizes. We continued to do that as we organized our warehouse and realized we even want these barcodes on the carton level on both sides of the business. As we expand, we know we’ll be going to GS1 US to license more prefixes because that’s what’s trusted and required by our retail partners.”
Conclusion
Selling online offers a great initial opportunity for small businesses to enter other competitive markets, build a loyal customer base and be ready to break through to brick and mortar. By addressing these five key factors, brands can position themselves for success and growth in ecommerce, while being poised to expand into other retailers.
James Chronowski is the VP and Strategic Account Management of GS1 US.
Online sales stock image by David Gyung/Shutterstock
