Multi channel retailing also known as omni channel retailing is a set of activities that allows businesses to offer customers a wide range of platforms from which they will be able to buy specific services and products. Multi channel retailing was all about brick and mortar stores and online stores in the last two decades, but things have changed. Today, when we talk about this subject, we usually mean selling on multiple merchant online platforms. For instance, you can sell your products on your own website, on Amazon, eBay, and Facebook at the same time. This will make you a multi channel retailer. Many people have embraced this idea and most of them have witnessed positive results.
Of course, this doesn’t mean that there are no downsides related to multi channel retailing. You must learn about these disadvantages too if you want to learn how to avoid them or at least minimize their effects. We will use this blog post to reveal the most important multi channel retailing advantages and disadvantages.
Multi channel retailing advantages
For starters, it’s important to understand that the proper analysis of customer behavior is crucial for your business. if you want to make plans for your business growth and expansion and if you want to boost sales, you can do this in a simpler way by analyzing data. With the right data, you can get a clearer picture of your current situation. So, multi channel retailing is another great way of gathering data related to consumers.
Next, thanks to multi channel retailing you will become available 24/7, 365 days a year to consumers all over the world. This option will also make your business more visible. Numerous studies have shown that a product that is sold on an increased number of channels manages to get more sales. Finally, specific products do better on specific channels.
Multi channel retailing disadvantages
As we said before, there are some disadvantages involved too. First and foremost, it’s more difficult to handle inventory. You will also have to increase the investment you are making in marketing. You will need to cover higher fees. Finally, you should design different approaches for customers on different channels because they have specific expectations.
All in all, multi channel retailing comes with much more advantages than disadvantages and it definitely deserves your attention regardless of the type of products/services you are selling.
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