Through-Channel eCommerce is the next stage in Partner Marketing

They say that necessity is the mother of invention, and we know that continues to be true. This is the story of a customer need, learning from mistakes, and the creation of a new, modern, eCommerce solution for the channel.

The Need

About 18 months ago, a customer asked us to help their partners build eCommerce stores. They knew that sales were going to uncontrolled online marketplaces instead of through their partners because the resellers didn’t have online stores. The vendor wanted to help their partners to participate in the digital marketplace economy, and they wanted their own products promoted digitally and sold electronically through their vast network of partners. They were on the right track. 

We then did what they asked of us. We launched an affordable, comprehensive eCommerce store solution for partners.

1. We pre-built templates that were tailored for this market
2. The program included our team doing all the work to set up the stores with partner branding
3. The stores included pre-built integrations with distributors for contract pricing and supply chain
4. We negotiated low-cost ongoing fees for the partners
5. We included training for the partners and an easy hand-off

We didn’t miss a thing. 

In addition, there were tons of government programs out there to help small businesses pay for eCommerce stores. It was the perfect solution.

How many partners took advantage of our program? 

None. Nada. Rien. Dim. Keiner. Nessuno. Zero. 

No matter how you say it, not one partner wanted the eCommerce store solution.  

They wanted a solution alright, but they didn’t want a store.   

We should have known. After all, we are a company that helps manufacturers and distributors go to market with and through their SMB partners, and our value proposition is based on the fact that most SMB partners (84%!) don’t have marketing resources and need an automated solution.  

We discovered… SMB partners also do not have the operational resources to manage an eCommerce store. You see, once we set up the store and connected all the dots, we still had to hand over the store to the partner. They still had to take it over, manage the application, pick individual orders, ship, manage and process returns. That’s what they couldn’t take on.

And so that led us to a better solution, one that didn’t exist before, but one that everyone wanted.

Through-Channel Ecommerce (TCeC)

The goals were still the same

1. Elevate and enable SMB partners to participate in the digital economy 
2. Keep customer online purchases with partners instead of leaking to the likes of Amazon
3. Promote vendor products digitally and sell them electronically
4. Grow manufacturer product sales through channel partners

With additional requirements:

1. The stores and the customer communications must be partner branded  
2. The solution must not require partner resources
3. The manufacturers must be able to control their own branding, product information and pricing

The New Solution – Through-Channel eCommerce

Instead of building individual partner stores, we built a single eCommerce store that is owned and managed by the one entity that *can* handle incoming orders, picking, packing, and shipping products. And in this case, it was a Distributor. Distributors are already experts at supply chain and order management and physical distribution. 

The products in the eCommerce store are populated directly from the manufacturer’s product information, so it’s always brand compliant. 

We then built storefronts for every partner – with their own branding and on their own websites. It’s a “skin” on the Distributor’s store that delivers the experience of a unique partner store for the customer.

Here’s how the flow works:

• Customers visit the partner “store”. They engage with the product content and place their order
• The order flows directly to the Distributor
• The customer receives confirmation from the Distributor – branded as the Partner
• The Distributor processes and ships the order to the customer
• Order activity is communicated to the Partners so that they know which customers ordered products from their store and the products that were processed. This gives them visibility to their customers’ needs in case they want to follow up directly. 

What does it cost partners?

Partners do not need to manage a store site, stock additional products for online orders, and they don’t need to process payments or physical order fulfillment. For that convenience, they are charged a percentage of the sale. When presented with this as a solution, partners told us this was a “no-brainer.”  For the most part, it’s incremental business that they are taking back from other uncontrolled online marketplaces. (like Amazon and others)

What’s in it for the Distributor?

We haven’t met a partner yet that doesn’t buy from multiple distributors. The distributor at the center of the store gets 100% market share of the online partner business. Clearly a major benefit.

The distributor can also build significant loyalty with the partners themselves. It’s a differentiator and an investment in the success of their partners. That doesn’t go unnoticed by the resellers.

What does Through-Channel eCommerce have to do with Through-Channel Marketing?

Through-Channel Marketing (TCM) combined with Through-Channel eCommerce (TCeC) creates a total solution and closes the purchase loop. Customers need valuable content with which to engage during their path to purchase. The partner sites, their stores, and manufacturer campaigns need to be promoted. Partners need to build their own credibility with customers who are doing their research online. Manufacturers want to control their own brand compliance and they need their advertising to direct customers to partners that are ready to fulfill. And then it all needs to convert on the store. See fig.2.

It’s not enough for large manufacturers and distributors to have their own digital marketing strategies and eCommerce stores. McKinsey explains that “Omnichannel is a path to share growth. The more channels a sales organization deploys, the bigger the market share gains.” Marketing and eCommerce strategy must include your partners – from the beginning of their online search process to the final sale. And it must be digital. The same McKinsey study found that “there are no exceptions. All B2B customers prefer omnichannel, no matter their industry, country, size, or customer relationship stage.” And for B2C, we know that online purchase behavior is here to stay.

Since that first customer asked us for a solution, we have begun working with many others in several different industries. With 75% of world trade flowing through indirect channels, there are hundreds of thousands of partners that need help.

Our recommendation is to start by understanding your customers’ journey. How do they research online, what content do they consume, and what information influences them to make a purchase decision?  Once you answer these questions, look to see if/how your partners are participating in that journey. Is your content on their websites and are they promoting it? If it even exists, is it current and brand-compliant?  If a customer wants to buy your product or service, can they do it digitally on your partners’ sites?

If the answer to any of these questions is “no”, then a Through-Channel Marketing and eCommerce initiative may be exactly what you need.

AscendX Digital Inc. is the first and only TCeC and TCM-as-a-Service marketing provider, and the only company with a revenue-generating model for distributors.  Our team has many decades of technology marketing expertise, and we work with vendors and SMB partners every day. Whether you need a new TCeC solution, have a TCMA investment that needs some strategic and/or operational support, or are looking for a fully managed as-a-service solution, AscendX Digital can help.