One of the major trends in the Toy & Game business in the last decade has been the growth of companies coming from outside the Toy & Game business and successfully establishing themselves across multiple markets via Amazon. These companies use their knowledge of tech and algorithms to beat established traditional players who see Amazon as one sales opportunity alongside bricks and mortar retail and the e-commerce sites of major mass market retailers.
Because these companies have no set parameters in terms of their own 'business as usual' they can invest more in advertising than the incumbent companies and they can adapt both their approach, but also their product development around what works best on Amazon's platform alone.
The challenge though for these disruptors in the Toy & Games business is that their eggs are firmly over weighted in one basket. Like all tech driven platforms, Amazon's method of operation, algorithms and trading terms can be changed at any time, and this can cause problems. No prudent business owner should be happy to have one retail platform alone dominate their revenues.
Once a company has established a successful business selling Toys & Games on Amazon, strategically speaking they need to work out how to diversify so that their entire business is not reliant on one platform.
In the last ten years, we have Consulted for a few dozen companies to help them establish 'traditional' Toy market distribution. We have helped them build up sales rep networks in some markets, selling in to book stores, bricks and mortar mass market chains, independent/mom & pop stores and beyond. We have also helped them set up a matrix of international Toy distributors and Board Games Distributors in countries as diverse as India, Korea, Australia, Germany, Canada and beyond.
If you are successful at developing and selling Toys & Games via Amazon, the good news is that your products have already accumulated enough social proof and industry kudos to be attractive to other distribution channels. Some of our clients have hundreds of thousands of positive reviews on Amazon across the product portfolios, and when products have that level of proven sales history and so many positive reviews, retailers and distributors normally want to sell this type of product on other e-commerce platforms and in bricks and mortar retail.
So, if you have asked yourself 'How can we as successful Amazon Toy sellers or Amazon Board Game sellers diversify on to other platforms and into more traditional Toy distribution channels, maybe our Consultancy services can help. For more information, just click here: https://www.kidsbrandinsight.com/services
Why Successful Amazon Toy Sellers Should Diversify Onto Other Platforms & Into Offline Sales
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