Why Multi-Channel Operations Are Your Next Big Win
Ciklum Editorial Team
Key Takeaways:
- Multi-channel eCommerce is essential for maximising retail sales opportunities
- Selling across channels boosts customer experience and builds market resilience
- Channels can be tailored to suit different customer demographics
- Centralized management and automation are technical keys to success
Multi-channel eCommerce, where products are sold on multiple online channels simultaneously, is more important in online retail than ever before. This is not only because multi-channel strategies expand potential customer base and product visibility, but also because they help retailers meet growing consumer demand for seamless interactions across websites, apps, social media and other sales platforms.
As a result, multi-channel eCommerce now accounts for 27% of global retail digital sales, so now is the time to get your organization on board if you haven’t done so already. This blog explores some of the best ways to approach preparing for multi-channel selling, including four vital multi-channel strategies.
Benefits of Adopting Multi-Channel Strategies
It’s easy to understand why multi-channel eCommerce is gaining so much traction, as it can deliver:
Increased Sales and Market Reach
Sellbrite research has found that retailers that are selling on at least three channels are generating 143% more revenue than those who are only selling on one or two. Not only is this thanks to being able to access a much wider customer base, but it also gives retailers the opportunity to offer different products on different channels, maximizing the chances of a sale with different demographics.
Improved Customer Experience
Connected to the previous point, multiple channels gives the retail flexibility to allow customers to engage with their brand on different platforms and in different ways. For instance, Nike customers can scan a product barcode via the app, to view available sizes and colors, whether in-store or online.
Whether customers prefer to browse on social media, on websites or by visiting a store in person, more customers are likely to get the experience they want. In turn, this helps breed satisfaction and brand loyalty in the long-term.
Resilience in Market Downturns
When market conditions turn for the worse, it’s the businesses that have all their eggs in one basket that tend to be the most vulnerable. Multi-channel eCommerce operations are better insulated against this as they aren’t dependent on a single channel or marketplace; if one suddenly has difficulties, resources can quickly be redeployed to the others in order to keep orders flowing and retain market share.
Strategies for Preparing Your Business for Multi-Channel Selling
From our experience supporting retail and eCommerce operations with their multi-channel selling, there are four key strategies to making the most of the opportunities available:
1. Choosing the Right Platforms
Each potential platform will vary in terms of its fees, demographics, and eCommerce competitors that are already using it. These factors should be considered when choosing channels, alongside fulfilment demands and customer service expectations.
2. Implementing a Centralized Inventory Management System
A good system for managing inventory helps synchronize stock levels in real time across every channel, minimizing the risk of costly over- or under-stocking. It can also provide data-driven insights into how inventory is turning over, so that reordering points can be optimized and tailored to different channels.
3. Leveraging Automation Tools and Analytics
Automation is proving to be a real game-changer in streamlining order processing, shipping and customer communications. This works in line with analytical tools, tracking historical data and performance metrics to support better decisions around resource allocation and marketing campaigns.
4. Optimizing Product Listings for Each Channel
With different demographics on each channel, product listings should be adjusted on each one, so that they’re more likely to resonate with the customer base in question. This includes images, product descriptions, SEO optimization and even pricing strategies, but should still remain brand-consistent.
Creating a Unified Brand Experience Across Channels
That last point is especially important - taking different approaches for multi-channel selling shouldn’t come at the expense of overarching brand consistency. Ultimately, all your channels and touchpoints should still fundamentally look and feel the same, and there are three important elements involved in that:
Expanding and Scaling Your Multi-Channel Strategy
Once you’ve got your multi-channel strategies up and running - or if they’ve already been operating for some time - then the next step is to explore ways to take them to the next level. These can include:
Identifying Opportunities for Cross-Border Selling
Using multi-channel selling opens up the possibility of targeting customers in different countries; looking for customer data patterns and feedback is a good first step for identifying suitable territories for expansion.
Incorporating AI and Automation for Scalability
AI and automation can help take the idea of personalizing multi-channel experiences even further, so that the entire customer experience is incorporated. Data and insights on individual customers can support tailored marketing campaigns, and inform staff on the channels customers are more likely to buy from.
Testing and Iterating Based on Performance Data
Performance data can be used to analyze a range of channel-specific metrics and optimize product listings, in addition to the personalization opportunities mentioned above. This data can be monitored continuously to support dynamic resource allocation that drives consistent growth.
Key Tools and Resources for Multi-Channel eCommerce Success
So what’s the best way forward with multi-channel eCommerce? Much of that depends on your current position, but we recommend exploring these tools, ideas and resources:
Optimizing Multichannel eCommerce Operations
Streamlined processes, centralized platforms and data–driven strategies all aid cross-channel efficiency and consistency.
Inventory Management Software Recommendations
Tools like Shopify can help automate fulfillment, synchronize stock levels, and reduce costly and disruptive errors.
Marketing and Analytics Tools
Platforms such as Google Analytics and HubSpot are ideal for tracking performance, segmenting audiences, and optimizing channel-tailored campaigns.
Seek the Advice of a Retail eCommerce Expert
Bring in third-party expertise who can help you with advice and solutions, specific to the needs and specific characteristics of your eCommerce operation. Talk to Ciklum today and find out more on our proven track record in retail and multi-channel eCommerce.
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