A Comprehensive Guide to Multichannel Retailing in E-commerce

In today’s retail landscape, consumers can interact with brands in multiple ways. They use online marketplaces, e-commerce platforms, social media, and traditional physical stores. Sixty per cent of consumers prefer shopping on apps. In contrast, others prefer shopping in physical stores, while some prefer browsing and researching products online before purchasing in a physical store. The best way to tackle dynamic customer shopping expectations is to adopt multichannel retailing strategies. Multichannel retailing not only expands customer reach but can also help boost sales.
In today’s article, we’ll explore multichannel retailing, its business benefits, and its challenges.
- What is Multichannel Retailing?
- Is Omnichannel Retailing and Multichannel Retailing the Same?
- What Should Businesses Opt For? Multichannel Retailing or Omnichannel Retailing?
- Multichannel Retail Channels that Businesses can Consider
- Benefits of Multichannel Retailing
- Challenges Faced By Businesses in Multichannel Retailing
- Get Access to Different Sales Channel With Solutions From WareIQ
- Conclusion
- FAQs About Multichannel Retailing In E-commerce
What is Multichannel Retailing?
There are several sales channels through which consumers can connect with a brand or make a purchase. Some sales channels are direct, indirect, and online marketplaces.
Multichannel retailing is making a product or a service available on more than one sales channel. The different channels with businesses that can make products available under the multi-channel retailing strategy are:
- E-commerce websites
- Retail stores
- Social media platforms
- Online marketplace
- Brand’s website
- Brand’s app
- Other offline and online channels
Is Omnichannel Retailing and Multichannel Retailing the Same?
The two concepts, omnichannel retailing and multichannel retailing, are similar; however, they have distinct differences. Omnichannel retailing is a much broader concept than multichannel retailing.
Omnichannel retailing and multichannel retailing are interrelated concepts. Omnichannel retailing is an integrated approach that aims to connect all channels to offer seamless and consistent service to customers.
Conversely, multichannel retailing involves selling products through multiple independent retail channels, where the service customers receive can vary.
In essence, omnichannel retailing goes further than multichannel retailing to provide customers with a more unified, customised, consistent experience. Hence, multichannel retailing is an essential part of omnichannel retailing.
All omnichannel retailing strategies are multichannel, but not all multichannel retailing strategies are omnichannel in nature.
What Should Businesses Opt For? Multichannel Retailing or Omnichannel Retailing?
Businesses need to choose between the multi channel retailing approach and the omnichannel retailing approach based on several factors. Let us understand how businesses can decide:
- Business Goals: A multichannel approach is more suitable if a business aims to increase sales. However, if the company strives for higher customer satisfaction and engagement, it is best to opt for omnichannel retailing.
- Available Resources: Small enterprises might find incorporating an omnichannel retailing approach difficult, as it may involve increased costs. On the other hand, a well-established brand will find it financially feasible to opt for an omnichannel retailing approach.
Besides, depending on a business’s requirements, it can opt for omnichannel and multi channel retailing together.
Multichannel Retail Channels that Businesses can Consider
Marketplace Advertising
Businesses can opt for multichannel retailing, such as marketplace advertising on Amazon or eBay or promoted listings, to ensure customers can easily find a product or promotion.
Comparison Shopping Engines
Customers prefer comparing products on different websites or directly on Google before purchasing. Comparison search engines offer customers various prices, features, and promotion options.
E-commerce Marketplace
E-commerce marketplaces like Amazon and eBay are foundations for success in multichannel retailing. A strong presence on these marketplaces can help you touch base with a wider customer base and boost sales.
Social Media Advertising
According to a study, 60% of people purchase products they have found on a social media application. Brands can promote their products by including purchasing links, allowing customers to purchase directly through social media channels.
Websites Optimised for Mobile Use
There’s nothing you can’t do on a mobile phone, including shopping. Users now prefer to shop directly from their mobile phones through websites or applications. Websites are more trustworthy; hence, businesses must ensure their websites are mobile-friendly to make this multichannel retailing strategy work.
Brick-and-mortar Locations
Some consumers prefer online purchasing options; however, some shoppers still prefer physical outlets to ensure that the products are of the promised quality. Even if businesses have a wide online reach, it is essential to have physical locations where customers can purchase products and receive better customer service.
Benefits of Multichannel Retailing
Below are the benefits of incorporating multichannel retailing strategies:
- With multichannel retailing, businesses can reach different customer bases across multiple platforms, such as social media, e-commerce platforms, or comparison engines.
- Since multiple channels exist worldwide, businesses can access better customer interaction and engagement opportunities. It will, in turn, lead to higher customer satisfaction.
- Due to multichannel retailing, businesses can achieve diversification, which helps provide a buffer in case of fluctuations.
- When a brand’s product is available on multiple platforms, it can give the company a competitive edge over competitors offering the same product or service.
Challenges Faced By Businesses in Multichannel Retailing
While there are several benefits of an incorporated multichannel strategy, there are certain challenges that businesses will have to face:
- Product demand will also increase with multiple sales channels, creating challenges in maintaining inventory.
- Multiple channels providing product access can make having all customer information in one place challenging. The data collected will be fragmented in nature.
- The biggest challenge is maintaining a uniform customer experience across all the platforms.
- Managing multiple retail channels can also increase operational expenses.
Get Access to Different Sales Channel With Solutions From WareIQ
WareIQ is a Y-Combinator-backed eCommerce full-stack platform offering multi-channel fulfilment across D2C, Marketplaces, Quick Commerce, and B2B (General Trade & Modern Trade)
Our solution offers:
- Pan-India network of Seller Flex & FAssured compliant across 12+ cities operated by WareIQ and shipping partners for last-mile delivery across 27000+ pin codes
- Multichannel Fulfillment Platform with plug-and-play integrations across marketplaces (Amazon, Flipkart, Myntra, Nykaa, etc.), D2C platforms (Shopify, Magento, Woocommerce, etc.), WMS, and ERPs to support fulfilment across distributors, flagship stores and eCommerce channels with analytics capabilities to assess operational performance
- Inventory LogIQ: AI-led multichannel inventory planning solution to minimise stockouts and automate replenishment
- Leverage the tech-enabled returns QC solution to capture, centrally store, and auto-index HD media evidence of damaged or missing returned products and eliminate marketplace claims rejections.
- A host of seller enablement and support – dedicated account manager, APOB/PPOB registrations, GST registration, NDR & COD verification, etc.
Conclusion
Multichannel retailing is a business strategy in which products are made available in more than one sales channel. Brands must incorporate this strategy, as customers now have various options to search for and buy products. Although omni-channel is also an option where customers can get unified and consistent service, multi-channel retailing has benefits. Small businesses can benefit from multichannel retailing at the start and then move on to omnichannel retailing as it expands. Companies must understand how multi-channel repair works and its benefits and challenges and incorporate it efficiently.
FAQs About Multichannel Retailing In E-commerce
How can small businesses go for multichannel retailing?
Small businesses can begin by understanding their audience and what channels they buy from. They can then expand accordingly.
How is omnichannel retailing different from multichannel retailing?
Under multichannel retailing, businesses sell products independently through various sales channels. On the other hand, omnichannel retailing involves selling products on different platforms in a unified way.
What risk can businesses face if multichannel retailing strategies are not adopted?
When multichannel retailing strategies are not adopted, businesses can face risks such as not reaching the target customer, not having enough brand visibility and market reach, and losing their competitive edge.
Do businesses need to keep pricing the same on all sales channels?
It is better if businesses keep the same prices. However, some platforms might add platform fees, thus increasing the cost.
Is having a mobile-friendly website necessary for multichannel retailing?
Today, more than half of customers prefer shopping on their mobile phones. Hence, it is important to keep the website mobile-friendly to ensure customers can easily purchase products or get in touch for service.