Omnichannel distribution is an emerging trend in the retail industry since it allows retail stores to fulfill instantly changing requirements from customers. However, retailers may face tons of problems when it comes to changing a traditional retail distribution to an omnichannel one.
Before digging deeply into operating an omnichannel distribution, it is important to have an overview of what an omnichannel distribution is.
Overview
What is omnichannel distribution?
Omnichannel distribution is a system that enables customers to enable consumers to buy and receive orders from multiple sales channels with one-touch seamless integration.
Types of omnichannel distribution
- Buy online, pick-up in stores: Customers can purchase goods online and pick them up in person.
- Buy online, dropshipping: Customers can buy goods online and have them shipped to their locations.
- In store purchase, home delivery: Customers can make purchases in a physical store and then have them delivered to their locations.
- Dropshipping: Customers can purchase items online and then transfer them from a warehouse or manufacturing center to store, home, or other locations.
- Buy online, return in-store: Customers can purchase and return items online
- Buy online, then return online: The customer can choose shipping items to the shop, home, or any other location from a manufacturing center or storage facility.
Advantaged of omnichannel distribution
Better access to products for customers
Being able to make purchases anywhere and choose suitable pick-up options create a better shopping experience for customers. Indeed, 54% say they are more likely to buy products on multiple channels. With an online and physical presence, brand recognition and fidelity increase. The retention of clients is more accessible than attracting new clients, cheaper and more efficient.
Flexibility
A strategy of distributing items on different channels means that everything is tracked through various platforms. If customers can collect online shopping from their expected shop, they must also return the same product. In other words, flexible options boost customer satisfaction and sales.
According to Accenture, if your omnichannel approach works appropriately, 75% of B2B customers are more likely to buy from the same companies.
Disadvantages of omnichannel distribution
Challenge businesses
Omnichannel distribution is an excellent service but complicated as well. An omnichannel system will not produce expected results if various systems can not work well with each other. It is vital to build a communication plan, such as a standard IT system throughout all channels. While the strategies can be stressful at the beginning of the process, when the process has been advanced over time, omnichannel distribution may bring you a considerable amount of revenue.
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Multiple channels are less expensive
Omnichannel appears to have higher profit margins. Each retail channel is, however, expensive. Multiple sites cost money for building stores, designing packages and delivering inventory. To illustrate, in 2016 sales for small van work in the USA grew by 8%, but a single quarter of large van sales grew by 18%.
The innovation that supports your omnichannel distribution
As mentioned above, omnichannel distribution is a potential way to expand shopping activities across different platforms and gain more revenue. However, retailers need to find themselves professional partners to prevent possible threats from ruining their businesses.
ConnectPOS is famous for being a powerful omnichannel POS that connects digital and physical stores together. With the help of ConnectPOS, retailers are able to create a seamless shopping experience and boost sales revenue. Additionally, this solution allows customers to make purchases and check out by themself, which will be a perfect choice for modern users.
Lastly
There are more and more retailers who are managing to distribute their products on different platforms due to their awareness of its benefits in terms of customer satisfaction as well as sales revenue. However, this is never an easy task.
Being an omnichannel POS, ConnectPOS is always willing to support retailers worldwide who are in the pursuit of omnichannel businesses. Contact us today!