The feasibility study is what determines whether or not your product will sell in a new marketplace by conducting a comprehensive form of market research. A feasibility study will consider everything from demand in your ideal marketplace to the way that consumers shop, price points and competitor research, seasonality and how products sell at different times of the year, and whether or not your target customer is purchasing on your ideal platform or seller channel.
The very name of this step to expansion gives away its intention – it is designed to determine the feasibility of launching a product in the new marketplace, with one of the first touchpoints being the platform that the seller wants to expand into!
The truth about Amazon
Amazon is big business in the USA, so it follows that many sellers believe the same is true all over the world. In reality, however, Amazon is a small fish in a big pond – just one of many marketplace sites and platforms you can choose to expand your brand onto.
Although proven to be one of the giants, it is important to understand that Amazon may not be the best platform expand your business to and that research needs to be done to establish where their core customer is spending their time and their money. And that’s just one step of your overarching growth strategy.
Exploring your brand
Another important part of the feasibility study looks directly at your brand, your website, and your presence in the existing market as a solution for customers and a reputable outlet for what they need. Here at GEE, when we work with a new seller who is looking to expand, we spend time diving into their brand – whether the owners are right for the new market, how they perform against their competitors, and how different platforms and marketplaces perform at different times of the year (product dependent).
We also look at the potential to expand not just your marketplace but your product line – considering similar products and categories that your brand could sit comfortable within.
How the study looks to a seller
When we work with new sellers on their feasibility study, all of the above is captured in a 12 month strategic plan, which demonstrates how their sales figures could increase over the course of a year if the recommended steps are taken.
Interestingly for us, there are some products and specific categories which feel ahead of their time for the new Europe and UK market – forcing us to look to the future and consider what is soon going to come into fashion inspired by the USA. It’s no secret that the UK and Europe follows many of the trends laid out in the USA, so looking at potential sales and projecting potential uplifts in demand is a core part of the feasibility study.
Building your business in a new market
A feasibility study allows us to take a step back from your product and your brand to understand exactly how it might fit into a new market – whether that be in search of a new audience or international growth. With market research and product sourcing both overriding factors in the success of a feasibility study, getting support is crucial – and that’s where GEE comes in, providing an end-to-end service that lets you understand the opportunity and then grasp it in your new market.
Check out the full webinar to learn the ins and outs of how we conduct a feasibility study, and don’t hesitate to reach out if you have specific questions, concerns, or want to engage our services.
We are here to successfully expand your eCommerce brand into European markets: https://www.youtube.com/watch?v=GLuUUotq80s&t=13s