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Channel imbalance is inevitable without conscious and active management to prevent it. I used to run an ecommerce platform, and saw the innards of a lot of merc
by madaxe_again 7y ago
Channel imbalance is inevitable without conscious and active management to prevent it. I used to run an ecommerce platform, and saw the innards of a lot of merchants. In a nutshell, a winning channel will see snowballing resource investment, and a losing one will be starved. You can force parity, but it usually comes at the cost of overall volume.
Boils down to risk mgmt vs revenue - and all but the most conservative businesses will choose revenue.
In my case, I absolutely starved booking in favour of Airbnb, as Airbnb was much faster out of the gate. So, I have platform risk, but revenue is good.
- Lucadg 7y agoHow did you starve Booking? Didn'it just happen? My point is that in this market it's really hard to attain channel balance. It seems the OTAs alghoritms absolutely favour cannibalization.
- madaxe_again 7y agoI didn’t actively manage pricing, which I do on Airbnb - and had to charge a lot more on booking for the same revenue, as their commissions are fairly astronomical, if you want to feature anywhere other than the last page of search.