The Good, The Ugly, The Bad – Multi Channel Retailing (Pros and Cons)

The Good, The Ugly, The Bad – Multi Channel Retailing (Pros and Cons)

When thinking about whether or not a different type of approach will be beneficial to a business, you as the owner of that business need to take as much research as you possibly can. The best way to figure out if something is right for you or not is to simply look at some of the pros and cons that that approach would bring you and in today’s article that’s exactly what we are going to do when it comes to the multi channel retailing advantages and disadvantages, so keep on reading if you are interested to find out something more about that.

We are going to start this article by actually talking about a pretty severe disadvantage that multi channel retailing brigs along and that is the fact that there is very poor visibility as well as control when it comes to the inventory that is at your disposal.  When you expand the number of channels that you are going to sell on, you need to be prepared to support those channels with stock, but the problem here is that the more channels the more difficult it is for you to have that inventory accuracy that you have when you are only selling on one channel. When using multiple channels, losing visibility and sometimes even control over your inventory is something that you will have to be prepared to deal with.

Another thing that we are going to talk about as a part of the multi channel retailing advantages and disadvantages is the fulfillment process. When you are an Omni channel brand, the whole point is to have a fulfilment method that is really fast and seamless, however doing this in a way that won’t eat at your profit margins is a whole lot more work than people realize. The process is not an easy one and it can be very daunting, especially if you have to do it on your own, so this is definitely something that you need to be aware of.

Something that is great about working with multiple channels is the fact that it really doesn’t cost you anything to get involved in that channel. Used to be that multiple channels meant opening more brick and mortar stores, which is something that definitely costs a lot of money, but nowadays new channels usually mean selling online and luckily for business owners, the internet has made this step a much cheaper and easier way to get your business out there.

A multi channel way of operating a business is definitely not for everyone, but it is usually something that can benefit a lot of businesses if you are brave enough to take the risk. We do believe that the risk is worth it, and hopefully when looking at the multi channel retailing advantages and disadvantages that we mentioned above, you will be able to see that there is a lot more to gain from this way of working than there is to lose, as long as you are willing to put in the right amount of work.

Other topics that you can check in:
Multichannel Ecommerce Retailing

By | 2018-04-24T14:56:18+00:00 July 11th, 2018|Last News|0 Comments