At YunExpress, there’s nothing we love more than cross-border eCommerce shipping. We’re always looking for the most efficient and cost-effective solutions for eTailers looking to provide quality shipping experiences to their customers. This means designing and managing the entire logistics chain in-house from the first mile, to sortation in our hub warehouses, to customs clearance at the destinations, and the last mile/delivery.
We are constantly adapting and improving our logistics supply-chain processes as evolving markets and laws dictate. We’ve worked with many online businesses since 2014 and one thing we’ve noticed is that the mid-market is often overlooked — or at least the strategies involved with the mid-market are not always clear. YunExpress works with a lot of large enterprises with massive volumes, but we also service medium-sized online retailers that have their own specific needs.
In this article, we’re going to take a closer look at mid-market businesses and the different mid-market strategies eTailers should know going forward.
What is Mid-Market?
With annual revenue of $87.4 billion, Amazon is very clearly a large corporation. Most people would also easily recognize an individual selling on eBay as a small company. But what about the companies in between those two categories? That’s the mid-market, often defined by the number of employees or annual revenue.
When it comes to eCommerce, lower mid-market makes around $2 to $10 million in annual revenue, mid-tier makes more around $10 to $50 million, and upper mid-market makes around $50 to $150 million in annual revenue. Even low mid-market’s $2 million is enough to place the company on the Internet Retailer Top 1000 list.
Mid-Market Business Strategies for eCommerce
Mid-market businesses have their own unique hurdles to overcome when it comes to expanding their customer base and growing their business. Oftentimes, the most successful middle-market companies are innovative, passionate, and motivated. They have unique perspectives and creative solutions. Check out some strategies below if you’re looking to grow and expand your own mid-market business.
Open New Markets
Growing fast requires new customers, but that’s not always an easy task. Recently, the National Center for the Middle Market conducted a survey that revealed 65% of fast-growing companies said they were skilled at entering foreign markets.
It may seem easier and more cost-effective to stay within a market you’re already comfortable with, but you won’t grow your sales in the long run if you aren’t able to tap into new markets. This takes a lot of research and marketing since each foreign market has its own trends. You’ll also need a reliable, affordable, and fast international shipping solution to reach these new customers.
Have a Formal Growth Strategy
Fast-growing mid-market businesses are more likely to have a formalized three- to five-year growth strategy than slower competitors. Even more importantly: they act on it. These companies have growth targets they communicate to all levels of the business, tracking their progress throughout the year.
To help execute their plans more efficiently, fast-growing mid-market companies also keep up-to-date with new management ideas and techniques.
Develop New Products and Services
One sure-fire way to reach these goals and find success in new markets is to continuously come up with new products and services. Instead of focusing on meeting the current demand, success middle-market businesses actively invest in the future. Do research on what different countries and demographics need or desire and tap into those things with your own products.
Hire the Best People
According to the National Center for the Middle Market, seven out of 10 of the fastest-growing mid-market companies stated that they have a talent for attracting top managerial talent. Recruiting workers at all levels that actively benefit the company and provide new skills, talents, and ideas is especially important for mid-market companies.
eCommerce teams should have a focus on finding people who have an aligned vision, since online businesses often have comprehensive processes, along with innovation, accountability and good time management skills.
Develop Your Staff
It’s also important to retain your top talent, not only to continue your company’s growth and reach goals effectively but avoid the costs and setbacks associated with constantly changing staff.
One weak spot in the middle-market is training and development. It’s important to help employees advance their careers through mentoring, recognition, and opportunities. Two-thirds of the fastest-growing mid-market companies said it’s one of their top priorities to create the right environment for employee advancement.
Stay Fit and Lean
The more efficient your business is, the faster you can grow. Mid-market companies who run lean generate more cash, which can be used towards developing new products or hiring more people. That’s why more than two-thirds of the top growers in the mid-market world stated they are “experts in maintaining efficient and effective internal controls.”
One way to easily shave off some fat is by utilizing a fast and cost-effective international shipping solution. YunExpress’ affordable shipping solutions make us one of the top 10 border-crossing shipping providers.
Manage Money Well
Making money is (hopefully) easy for you at this point. The secret to success is managing capital well in order to achieve sustainable growth. Hire a strong finance team, ensure you have a strong relationship with your principal banker, remain flexible. It’s important to have money ready when opportunities for growth present themselves.
Middle-Market Business Strategies in Action
When it comes to being a success mid-market business, it’s important to hire innovative and successful employees, build a strong financial team, tap into new markets, and not be afraid of implementing new strategies or creating new products.
At YunExpress, we work with a lot of middle-market companies who find a lot of success in the world of online retailing. That’s because eCommerce makes reaching those new markets and providing them with products and services easier than ever. Contact us today to learn more about how can help with your B2C shipping needs.