Though physical stores still make up the majority of retail volume in the US, ecommerce market share has expanded in the last several years. In 2023, online retail made up about 15 percent of total US retail volume, and by 2026, forecasters expect nearly a quarter of all US-based purchases to take place online.
As ecommerce has grown its market share, the online retail experience has also grown in complexity. A consumer might look to influencers, ads for online stores, and review sites before making a purchase. This wide network of sources creates a lot of noise, presenting both challenges and valuable opportunities for ecommerce retailers.
This is where ecommerce partnerships can help online businesses thrive. With the help of influencers and other retailers, you can elevate, credential, and market your products to new customers, while offering customers more enticing shopping experiences.
Here’s how to make ecommerce partnerships part of your successful ecommerce marketing strategy.
What are ecommerce partnerships?
An ecommerce partnership is a formal agreement between an online retailer and another business or individual to meet mutually beneficial goals. Ecommerce partnerships can take many forms; they can be between two complementary brands or between businesses that can offer new capacities to one another (for instance, a brick-and-mortar retailer might partner with an ecommerce platform to help build its technology stack).
One type of ecommerce partnership is influencer marketing, where a company teams up with an individual with a large social media following. In most cases, the influencer agrees to promote a product in exchange for a flat rate or commission, which can be a cost-effective way for the company to reach new audiences. This type of partnership can help you further expand a successful ecommerce business.
Benefits of partnerships for ecommerce companies
There are many potential benefits of ecommerce partnerships. Here are a few to consider:
Extend reach and visibility
The right ecommerce partnership can expand your reach, introducing you to new potential customers and market segments. A small business, for example, can partner with a large retail outlet. The small business gets to stock their products on the retail outlets’ shelves and reach more potential customers while the larger company gets to offer unique local merchandise to their customers.
Build trust in your brand
Successful ecommerce partnerships—such as those forged between ecommerce businesses and trusted small-scale influencers—can help an online business establish credibility. A recent Nielsen Global Trust in Advertising survey found that 92 percent of consumers trusted word-of-mouth recommendations from friends, family, and online experts over other forms of advertising.
Given this, a luggage company might establish an affiliate partnership with a well-respected travel blogger where the affiliate promotes the luggage via their blog and on social media platforms. The luggage brand is more likely to be seen in a positive light than if the company simply ran digital ads for the luggage within the travel blog.
Improve customer experience
Ecommerce partnerships can improve customer experiences by providing online stores with all the necessary tools for seamless marketing, selling, and product delivery. Partnerships with businesses that specialize in areas outside your domain of expertise can provide you with a solutions suite that can improve customer retention.
Get valuable product feedback
Partnering with influencers—whether a big-scale influencer or nano influencer—offers an opportunity to receive authentic, constructive feedback about your product or marketing messages from the influencer and their community. This valuable product data can inform your strategy going forward.
How to build ecommerce partnerships
1. Assess your goals (and budget)
What are your company’s short and long-term goals? Could ecommerce partnerships introduce you to new customers or help build the capacity of your operation? Be clear-eyed about what your company needs and what it can afford to spend on marketing and relationship-building.
2. Do your homework
Based on your goals, research potential partners. What channels does your ideal customer base spend time on? Whose network would help connect you to new customers or strengthen existing relationships? Could ecommerce partnerships potentially help you save on marketing and operations costs?
Here are a few types of partnerships to research:
- Influencers. If you run a small business or have a limited marketing budget and your product appeals to everyday consumers, working with influencers could be a great way to build brand visibility on a shoestring. A partnership with a nano-influencer (an influencer with 1,000–10,000 followers), for example, can cost as little as $10–100 per Instagram post, and micro-influencer platforms offer an easy way to find partners.
- Complementary brands. By partnering with a brand that offers complementary products, your brand can offer customers value packages, or potentially split marketing costs on a synergistic campaign.
- Physical stores. If you’re not seeing the ecommerce traffic you hope for, consider whether there are brick-and-mortar retailers that can boost your bottom line with some foot traffic.
3. Connect
Connect with potential partners by highlighting your brand's unique value proposition, demonstrating why it's an exceptional choice for collaboration. Here are some questions to address in your initial outreach to potential partners:
- Why are you interested in partnering with this brand or company? What do you hope to achieve through collaborative efforts?
- How could the partnership be mutually beneficial? What strengths do the two brands bring to the table? How are these complementary or additive?
- What does the business you’re contacting stand to gain by working with you?
Be prepared to show that you did your homework by making your proposal as specific, transparent, and quantitative as possible. Showing that you’ve learned about the other brand demonstrates that you’re interested in what’s best for both brands.
4. Establish an agreement
Once you’ve found a prospective partner, formalize the partnership with a written agreement that lays out each party’s responsibilities, how much each will spend or receive, and timelines for deliverables.
Include as many details as you can. Determine appropriate communication channels (e.g., email plus monthly video calls) and how often you’ll check in with each other. Put systems in place to track progress and changes. Establishing agreed-upon key performance indicators (KPIs), benchmarks, and assessment schedules ensures clear expectations for your business and new ecommerce partners.
A formal arrangement can prevent the gradual addition of tasks and expectations—known as scope creep—and help protect both parties if the partnership doesn’t yield what each expected.
5. Analyze and adapt
An ecommerce partnership is a formal agreement, but it’s also an experiment. Track progress toward KPIs. If the partnership is truly mutually beneficial, consider extending or expanding the project.
Consider ending a partnership if your collaborator consistently falls short of agreed-upon KPIs, like new followers or conversions. Another reason could be inadequate or unprofessional communication with your team. Prioritize open and respectful dialogue to align perspectives before contemplating a separation.
If you choose to end a partnership, be sure your decision reflects your formal agreement, and be courteous and honest, leaving room for future collaboration whenever possible.
Ecommerce partnerships FAQ
What are the types of ecommerce partnerships?
There is a wide range of ecommerce partnership types, but the most common include affiliate marketing and influencer marketing.
Does Shopify have an ecommerce partner platform?
Yes. The Shopify Partners Program introduces you to a network of marketers, developers, designers, and consultants who can help your ecommerce business level up. It offers ways to earn extra revenue by referring clients in your network and access to resources and certifications that can set your company apart.
How do you manage ecommerce partnerships?
Partnership relationship management (PRM) software can help you connect with the right partners and track all relationships within your partner ecosystem. Partnership management platforms provide ecommerce companies a single hub for communicating with partners and storing partnership data.
Why are ecommerce partnerships so important?
Ecommerce partnerships are important to building brand awareness, finding new customers, growing revenue, and strengthening your ecommerce business’s network and operations. Successful ecommerce partnerships can help your business garner recognition and conversions in innovative and low-risk ways.
