Businesses have always spent huge amounts of money advertising on radio, television, newspapers and magazines. These commercials and print ads were typically centered on the specific company and its products and services, with no mention of the competition — unless it was in a negative way.
Now, thanks to the rise of e-commerce, many companies are realizing that traditional advertising is not as effective as it used to be. Instead of being inspired to buy a product based on a jingle on TV, shoppers are now more likely to use their mobile devices to look up what they need online and buy it there.
This change in the way consumers shop has inspired a number of companies to do what used to be unthinkable: collaborate online with other brands that share their type of shopper. With this in mind, let’s look at how and why e-commerce partnerships can fuel growth, as well as a few examples of who is doing this effectively.
It Boosts Credibility of Both Companies
Working with another like-minded company can really boost the credibility of both businesses, especially in the case of a large brand collaborating with a smaller one. For example, if a mom and pop company forms an e-commerce partnership with a larger brand, it will really give the smaller business a huge boost with consumers who are impressed that a local company caught the eye of an established corporation. For shoppers who like to shop locally whenever they can, seeing that their trusted hometown company is now partnering with a major national company can may also help to enhance consumers’ trust in them.
Growth in Exposure
Small companies, especially those that are just getting started, are typically focused on getting noticed. Larger corporations that have been around for years are often more concerned with ongoing credibility with their customers. By partnering with companies that share similar values and interests, smaller businesses especially will get a great deal more exposure through the larger brand’s established network.
Companies Nailing E-commerce Partnerships
A number of businesses have already forged some effective e-commerce partnerships. For example, Amazon has been king of this approach for some time; small companies that are getting started can sell their wares on the Amazon marketplace and use the consumer giant’s name and reputation to boost exposure and sales. Another great example of an e-commerce partnership can be found at Cabela’s, which features a “Save Now” banner on their website that shows a list of brand discounts that they’re promoting to boost sales. In addition to official club offers, shoppers who click on the link will find rebate info for the SOG knives and tools company’s products, a $100 rebate on Remington, as well as how to receive a free magazine with the purchase of a new Tikka T3x TAC A1 rifle. Also, Google and Walmart have teamed up; Google is now offering Walmart products to consumers who shop on Google Express, the company’s online store. Walmart customers can now link their accounts to Google, and when they use Google Home to order or reorder products that they need, they can easily get them from the major retailer.
E-commerce Partnerships are Changing the Face of Advertising
While it can be hard to imagine companies figuratively sleeping with the enemy, there are definitely some advantages to businesses collaborating with each other. Whether it’s a small startup partnering with an established company or vice versa, or larger corporations banding together to get more customers, it will be interesting to watch this phenomenon over time and see how it will change the way products are advertised and its impact on sales.