Multichannel electronic commerce, also known as Omni-channel electronic commerce, is when retailers use different internet platforms to sell their products. Multichannel retailing is practiced in order to increase revenue but that is not always the case. Like any other business strategy, it has its pros and cons.

The advantages of using multiple channels for your electronic commerce business are:

  • Improved Customer Perception

Brands that use multichannel retailing seem like companies that are forward-thinking and working alongside technology. This makes customers view the brand as more fashionable or up to date.

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  • Better Data Collection

Having multiple platforms on which your product is advertised and through which people can buy your products is extremely beneficial because it helps retailers understand where they get most of their customers from. This information can help the retailer improve his or her marketing strategies and assess where to make investments for maximum profit.

  • Increased Sales

Multichannel retailing can help increase sales because prospective customers are more likely to stumble upon a product advertisement while using their social media or other e-commerce platforms. Therefore, the chances of people being redirected to your website are higher which in turn could mean more sales.

However, multichannel electronic commerce is not devoid of its downsides. Some of the disadvantages of using omi-channel retailing are:

  • Lack of control

If you choose to sell your products on different platforms there is a chance you may lose out on your brand identity. This may be so if you do not market your product in a way that it links back to your brand and this, people may assume that the product belongs to the website they saw it on.

  • Increased Sales Costs

Selling products on different online platforms can be challenging which is why if multichannel retailing is something you are leaning towards then it is possible you might need to hire more staff to take and process all the different orders that you might receive in addition to purchasing the appropriate software required to manage them. Not to mention the amount the increase in marketing costs since you might have to market your product a different way according to the different websites that you advertise your products on.

In conclusion, multichannel retailing has both, advantages and disadvantages. Some of the disadvantages, however, can be avoided with proper planning and implementation, therefore, multichannel retailing can be useful if done right.

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