Your own e-commerce website stands apart from marketplaces. You pay no commissions, retain customer data, and dictate the brand experience.
Despite this, in many businesses, the site operates disconnected from operations. Orders arrive via email, inventory is updated manually, and invoices are issued separately.
In this article, we explain how to define your own site as a sales channel and how this transforms operations.
Table of Contents
Why define it as a channel?
Your own site is no different from a marketplace in terms of operations. It generates orders, consumes inventory, and requires invoicing.
Therefore, managing it with a separate process creates unnecessary complexity. The warehouse team should not have to know where an order came from.
When defined as a channel, the site is fed from the same inventory pool as other channels. The risk of overselling is eliminated.
Reporting is also done from a single place. The site's share of total sales and profitability become comparable with other channels.
We covered this integrated approach in the multi-channel sales management article.
Site channel definition
The definition begins with registering your site as a sales channel in the system. Connection details and authorization are established at this stage.
Next, channel settings are determined: which warehouse it will be fed from, which price list will be used, and the default order status.
Because there are no commissions on your own site, the price list can often be more affordable. This is an incentive that directs the customer to your own channel.
However, the risk of conflict with the dealer channel must be taken into account; if the online price falls below the dealer retail price, it creates commercial tension.
We discussed the pricing structure in the customer-based pricing article.
Product information and mapping
The products listed on your site must be matched with your stock cards. This matching is usually established via stock code or barcode.
On your own site, you have the opportunity to present product information much richer. Detailed descriptions, multiple images, and technical specifications directly impact the conversion rate.
It is preferred that this information is managed from a single location. The description kept on the product card goes to both the site and other channels.
For products with variants, the matching must be established at the variant level; see the variant product tracking article.
We detailed the matching discipline in the product matching article.
Stock connection
Keeping the site stock up to date directly affects the customer experience. A product added to the cart but later found to be out of stock causes a loss of trust.
On your own site, synchronization delay is less punishing compared to marketplaces; you do not experience a drop in rating. However, customer satisfaction is still affected.
A reserve margin can also be used here. Especially in a structure that shares stock with the physical store, a buffer is necessary.
Some businesses prioritize their own site: they keep the reserve margin low here and high on marketplaces. This is part of the strategy to grow their own channel.
We covered the synchronization mechanism in the stock synchronization article.
Order and payment flow
Orders coming from the site are collected in the same list as other channels and processed with the same workflow.
The payment side is different. On your own site, collections go directly to your account; on a marketplace, it depends on the payout period.
This difference is important in terms of cash flow. Sales made through your own site turn into cash much faster; cash flow tracking check out the article.
The billing flow is also the same; the document type is determined according to the buyer. E-commerce order invoice flow we discussed in the article.
The shipping side is also managed jointly; the tracking number can be automatically notified to the customer.
Advantages of your own site
Not paying commission is the most visible advantage; however, this is not the only advantage.
Customer data remains entirely with you. Contact information, purchase history, and preferences accumulate in your own CRM; what is CRM you can check out the article.
You build the brand experience. While you are listed side by side with your competitors on a marketplace, on your own site, you are the only brand.
Campaign flexibility is also high. You set your own rules and determine your own timing.
In contrast, you have to generate the traffic yourself; this is a separate investment item and must be included in profitability calculations.
Measuring performance
The performance of your own site should be compared using the same metrics as marketplaces. However, the cost items are different.
Instead of a commission, there is a marketing cost. Advertising spend should be calculated as cost per order.
The repurchase rate should also be monitored; on your own channel, this rate is usually higher and increases long-term value.
The average basket size also differs. On your own site, you have more opportunities for cross-selling.
These indicators are monitored in channel-based reports; channel definitions in the e-commerce module are kept.
Setup order
Defining a sales channel in the correct order eliminates most subsequent corrections.
First, determine which warehouse will supply the channel. This decision is the basis for stock visibility.
Next, assign the price list; if channel-specific pricing is required, a separate list must be defined.
In the third step, select which products will appear in the channel; the entire catalog is not suitable for every channel.
In the fourth step, define the order and invoice flow; it is recommended to separate document numbers by channel.
In the final step, verify the entire chain with a test order; the order, stock reduction, and invoice are checked together.
Points to consider
Changing the channel definition later affects the comparability of historical reports.
Therefore, fundamental decisions such as warehouse and price connections should be made at the beginning of the period.
For channel-based reporting, recording the order source is essential; this field cannot be filled in later.
Reflecting shipping and commission costs to the channel makes true profitability visible.
The return flow must also be defined from the beginning; a channel with an uncertain return process corrupts stock data.
When these definitions are complete, the channel operates with the same discipline as the rest of the operation.
Frequently asked questions
Which infrastructures does it work with?
The connection method varies depending on the platform; API or file-based transfer can be used. Get confirmation for your own platform prior to installation.
What if I have multiple sites?
Each site is defined as a separate channel and monitored separately; different price lists can be used.
Should site orders be fulfilled from a separate warehouse?
It depends on the volume; warehouse and marketplace stock synchronization we discussed the options in the article.
Can I also sell to my dealers through the site?
A separate portal is more suitable for dealer orders; B2B order portal see the article.
Your own website can be your highest-margin channel; however, it needs to be integrated into the operations. A disconnected site generates both errors and workload.
Let the first step be connecting the site to the same inventory pool as other channels. This single change solves the issues of overselling and manual updates simultaneously.
Then, set up channel-based profitability comparisons. You can only see the true value of your own website through this comparison.
By consulting with the EQLEM team, you can plan your site channel definition.