Multi-Channel eCommerce- What is, Channels, Software, Benefits, Example, ++

Introduction

Building an online store is the most common trend. 

But today’s customers want more! They hardly believe an unknown brand with just a website. As time passes, they now believe in the recommendations of their favorite influencers or shop from a well-known marketplace. 

In this article, we’ll explore the ins and outs of multi-channel eCommerce - what it is, its benefits, how to get started with it, and some solid strategies to ace the multi-channel eCommerce game.

Let’s get started!

What is Multi-channel eCommerce?

Multi-channel eCommerce is a marketing strategy of adopting different platforms to market and sell products. While the traditional approach boxes eCommerce sellers into the online store, multi-channel eCommerce goes beyond and allows them to reach every place their customers hang out. 

These include both online and offline sales channels like brick-and-mortar stores, social media handles, online stores, Google shopping, marketplaces, and more. The main goals here are to diversify sales channels and provide the customers with different options to make the purchase. These together contribute to increased sales over time. 

Example of Multi-channel eCommerce

Say you have a clothing brand, and you have set up an online store. But you want to reach out to GenZ and millennials. So, you have created an Instagram shop since social media is their top channel to discover new products.

At the same time, you have also added some of your items on Amazon, considering it has over 2.27 billion web visits. Not only that, but you have also created a mobile application to cater to the mobile-savvy retainer customers. 

This is a perfect example of multi-channel eCommerce. Instead of relying on just one platform (your online store), you have strategically expanded your reach through various channels and opened some additional ways to increase sales. 

Take Reebok as a burning reference. Besides its own online store, it has also created an Instagram shop:

Plus, you’ll also find Reebok products on Amazon:

At the same time, it has also launched a mobile application for both Android and iOS users. 

Multi-channel vs. Cross-channel vs. Omnichannel: What Are the Differences?

Multi-channel, Omnichannel, and Cross-channel - these three marketing strategies may sound similar, but in reality, there are subtle differences among them. Let us explain how. 

In multi-channel eCommerce, retailers use different sales channels to interact with customers. These sales channels work independently without building consistency or synchronization. 

For example, if a customer adds some products to the cart on the brand’s mobile app, he won’t be able to find the same products in the cart if he tries to check out via the website. This means his shopping carts, preferences, and personal data have not been shared across different channels. 

Cross-channel, on the other hand, involves a certain level of integration among these channels. The integration may be seamless, but the data sharing is often partial. 

Omni-channel eCommerce takes the integration among all channels to the next level. Here, all these sales gateways are integrated, and they complement each other. The main goal here is to provide a seamless shopping experience to the customers.

If we consider the previous example once again, the customer would be able to find all his wishlist and preferred products in every channel - no matter if he is checking out via the brand website or mobile app. 

Why You Should Consider Multi-channel eCommerce as One of Your Growth Strategies

A recent study by Market Research Future predicted that the Multi-channel marketing market size is going to reach $28.6 billion by 2030 - which is a compound annual growth rate of 22.3% than last year. 

This means multi-channel eCommerce is going nowhere; rather, it’s getting more popular and will be adopted by most eCommerce retailers. So, if you’re still thinking of sticking to just one platform, here are some reasons why you should change your strategy. 

1) Increased brand reach

Nowadays, customers hardly purchase a product from a brand website. First, they discover it on social media or through a simple Google search. Then, they log in to the eCommerce site with their details to get product reviews.

In the meantime, they might change their mind and move on. Later, they again get intimidated by the brand’s social posts and, finally, complete the purchase either on the social media itself or from the website or any marketplace. 

Multi-channel eCommerce helps you reach your would-be customers, - catering to their preferences across various channels. This creates long-lasting impressions and makes them remember you whenever they make up their mind to buy something new. 

2) Maximized sales & revenue

There’s no doubt in the fact that multi-channel eCommerce skyrockets the brand’s annual revenue. If brands use more than one channel to sell their products, they are going to generate 190% more revenue than those eCommerce retailers who use just one platform. 

Now the question is, how does multi-channel eCommerce increase sales and profits? That’s because it provides flexibility. If your customers like any product while scrolling their feed, they don’t need to visit the official store. Instead, they can shop with just two clicks through their favorite channel, where they mostly spend their time. 

This ease of shopping wins their impulse buy-ins and improves revenue. 

3) Improved Brand Loyalty

How many times do you purchase from an unknown brand? Hardly once or twice. That’s normal. With the rise of online scams and fraudulent products, shoppers mostly avoid those brands that they are unfamiliar with. 

Since multi-channel retailing increases brand visibility, it creates a sense of credibility among your would-be buyers. Plus, if you can leverage your existing happy customers and post user-generated content across different channels, it’ll boost your WOM (Word-of-mouth) marketing and portray you as a legit company. 

4) Adaption to constant-changing customer behavior

There was a time when reviews on the eCommerce website’s product page used to compel scrollers to purchase a product. Now, influencer marketing and UGC stay on top of customers’ minds while buying products. 

Likewise, Hootsuite’s study found that Instagram is GenZ’s no.1 platform for product discovery. At the same time, GenX prefers Amazon to purchase products.  

When you adopt multi-channel eCommerce and expand your reach on various platforms, it gives you an edge that helps you meet your shoppers’ needs - irrespective of the preferred channels. Plus, analytics gathered from different sales channels lets you understand their shopping behavior and keeps you ahead of your competitors. 

What Sales Channels Brands usually Choose for Multi-channel eCommerce?

There are a number of platforms you can consider for multi-channel eCommerce. Here, we have mentioned some major ones among them:

1) E-commerce websites/storefronts

Having an eCommerce store is the first move every retailer makes. One of the best parts of having an eCommerce website is less competition.

Unlike Amazon or other marketplaces, where different brands fight with each other, a well-optimized eCommerce website that drives a decent amount of traffic can draw every facet of customer attention. 

You can think of the giant brand PUMA. As per Semrush’s study, its online store drives around 29.54 million visitors. However, if we consider another side, having a well-designed eCommerce website is also a great option to build customer loyalty. 

To build an eCommerce website from scratch, you can go for platforms like Shopify, BigCommerce, and WooCommerce. They already come with built-in features you need to run a successful eCommerce store. 

While building an eCommerce website, ensure - 

• It’s well-optimized for SEO
• It has a top-notch design
• It loads within a second
• To add chatbot support to the customer
• To add multiple checkout processes

2) Online marketplaces

$3.5 trillion! That’s the market size online marketplaces are going to hit in the last year. This craze of online marketplaces is totally justified. 

Since customers are skeptical about buying from an unknown online store, selling on marketplaces gives online retailers a chance to build credibility and, hence, improve sales. But one drawback of selling on marketplaces is you’ll have to strictly abide by the rules & regulations mandated by these platforms and face immense competition. 

However, here are some top online marketplaces brands mostly prefer selling on: 

1) Amazon

Amazon can be a great place if you’re looking to reach a wider audience worldwide - thanks to its 2.27 billion web visits. Though you can sell almost everything on Amazon, it has imposed restrictions on a few products. This marketplace can be your best bet if you sell products under the beauty and self-care, electronic gadgets, and toys categories. 

But not everything comes with perfection! You’ll have to compete with 2.3 million established sellers and fight to win Amazon Buy Box, which is a bit tough for absolute newbie sellers. 

2) Walmart

With over 350 million active buyers, Walmart is the largest marketplace in the U.S. If you’re just starting out, you can consider selling on Walmart since it doesn’t charge any setup or subscription fees. At the same time, as Walmart imposes strict rules on sellers’ applications, this platform has less competition than others like Amazon. 

At Walmart, you can sell anything and everything. However, if you are planning to sell any fragrances or jewelry, you need pre-approval from the Walmart team.  

3) eBay 

As per a recent study by Statista, eBay stands out as the most visited online marketplaces like Amazon. So, you can also include eBay in your marketplace list. Unlike other marketplaces, eBay doesn’t have any strict rules for sellers. Plus, it doesn’t impose any upfront fees if someone wants to sell anything on this platform. 

Apart from these, other marketplaces like Flipkart and Etsy are two of the most popular marketplaces you can count on. 

3) Social platforms

Social commerce isn’t a new term. It’s been a long time since social media has been considered as one of the most powerful tools for eCommerce business growth. The rise of different content formats like Facebook/Instagram Live, and Shoppable videos have opened up new opportunities for sellers to directly reach the customers.

That’s why the worldwide revenue of social commerce will surpass $6 trillion by 2023. Among various social platforms, here we compiled 3 best of them that rule this sector:

1) Instagram shop

To aid eCommerce businesses, Instagram has launched a new feature called Instagram shopping. It’s almost like a brand’s customized digital storefront that allows shoppers to purchase directly from the app itself - without visiting the online store. This wins customers' impulse buy-ins and reduces cart abandonment to a great extent. 

Please note that on Instagram shops, you can only sell physical items. 

2) Facebook shop

Like Instagram, Meta has also added a shop functionality on Facebook. Here, you can feature your products, merchandise your collection, and customize fonts and colors. The best part? Here, eCommerce brands can even connect with their customers on WhatsApp and Messenger to offer them direct support and required solutions. 

3) Tiktok shop

With over 3.66B visits, Tiktok stands out as one of the ruling social media platforms. It has also added a “shop” functionality to contribute to social commerce and help brands turn their followers into paid customers. 

Under Tiktok’s shopping functionality, you’ll receive a suite of tools and features that’ll help you sell directly on this platform. The most interesting part is you can add shoppable product links to the videos to ease shoppers’ buying process. 

4) Google Shopping

Since 49% of people consider googling while purchasing, listing your products on the Google Shopping tab can be a game-changer. It allows you to find products at different prices, brands, and sizes. To leverage this top-notch solution, brands need to sign up for Google Merchant Center. 

5) Mobile Apps 

Considering the constant growth of mobile commerce, eCommerce sellers are trying their hands out at building their own iOS and Android apps. These apps offer easy accessibility of the products - allowing them to shop from anywhere with just a few clicks. Leading brands such as IKEA and Jentry Kelly have launched their customized mobile apps to reach a wider audience. 

How to Get Started with Multi-Channel eCommerce: 5 Simple Steps

Now that you have an overview of how multi-channel eCommerce works, let’s take some practical steps and check how to get started with this strategy. 

1) Select sales channels

If you want to select those sales channels that will pay off later, you need to be a bit strategic. 

For example, if you sell clothing, shoes, makeup, and accessories, Instagram is your option. On the other hand, you must opt for Amazon and Walmart if you sell tech products. Likewise, Pinterest can be your best choice if you sell aesthetic vintage items and crafts. 

However, we’ll always suggest you create your accounts on Instagram, Facebook, Amazon, and Walmart alongside your own online store. 

2) Optimize product listing

What’s the point of selling on different platforms if your customers can’t find the products while searching? That’s where product listing optimization comes into the scene. It ensures your brand pops up when your targeted customers search with specific terms. 

However, product listing doesn’t just mean optimizing the descriptions with proper keywords. It also suggests:

• Adding detailed descriptions
• Providing high-quality, real-life product images (You can also try your hands on different content formats like live video and shoppable video)
• Maintaining each platform’s SEO requirements 
• Adding competitive pricing
• Offering product review 
• And more

3) Market your brand on different platforms

Your job doesn’t end after just adding products. You need to market your brands aggressively to get rewarded. 

Different marketing approaches work on different platforms. There are:

Above all, top-notch, value-adding content still rules online media that wins customers' hearts (and eventually sales) without higher promotions. 

4) Integrate Multi-channel Inventory Management Solutions

At this point, we are assuming that you’ve started getting orders. To seamlessly manage product stocks across multiple channels, you need multi-channel inventory management software.

It provides real-time visibility of inventory levels, updates order statuses, helps in inventory planning, and sets reorder points - without you having to go back and forth with multiple platforms. 

There are a number of multi-channel inventory management solutions. Here are our top 3 choices:

• Linkworks
• Sellbrite
• Orderhive  

5) Set up a seamless order fulfillment and return process 

Now comes the most daunting part of the whole multi-channel eCommerce journey - multi-channel fulfillment. Handling multiple orders from different platforms, and managing last-mile deliveries and returns and that too without harming customer experience is no easy feat. 

That’s why you must rely on third-party logistics software like ClickPost. They manage each and every order, provide on-time notifications, and manage failed deliveries and returns - no matter what platform you choose to sell. 

So, go for a top-notch logistics management solution and ease the fulfillment process. 

How to Ace Multi-Channel eCommerce

Nowadays, almost every eCommerce brand considers multi-channel eCommerce as their growth strategy. So, what else can you do to take your multi-channel eCommerce to the next level? Let’s check out. 

1) Engage with your customers on social media

Don’t leave your customers in the dark. If you want to gain their trust, build a rapport with them by building conversations in the comment sections. Solve their queries in real time and make them feel like you actually care for them. 

You can also reply to your customers if they tag you in their posts. Here is an example of Allbirds setting the bars of customer expectations. 

2) Harness the power of AI 

There’s no doubt in the fact that AI is the future of eCommerce. Zipdo’s study stated that retailers who have integrated AI into their operations have seen a 15% increase in their overall revenue. You can use AI in multiple ways to power your eCommerce business. These include:

• Automated chatbot integration
• Customized product recommendations
• Automated warehouse management
• Order processing
• Automated return management

3) Add the right tools to your tech stack

Like artificial intelligence, having a proper tech stack can accelerate your multi-channel eCommerce game. It manages most of the manual daunting tasks and provides an integrated solution that takes care of all aspects of your business.

Here, we have compiled a list of tools/platforms you need to have to manage all the tasks successfully:

4) Be smart with the pricing 

Today’s customers are intelligent. Before hitting the “Buy” button, they compare the pricing of the same products on different channels. So, ensure to stay updated with the current pricing trend.

Check out your competitors, analyze your strategy, and then set the pricing. You can also play around with different aspects like free shipping and discounts on the first purchase to win customer buy-ins. 

Simplify Complex Multi-channel Selling with ClickPost 

The most critical aspect of multi-channel selling is order fulfillment and return management. Managing each customer’s expectation, sending shipping updates to each of them, and managing fake & failed deliveries - there are a lot of daunting tasks you need to take care of while overseeing dynamic marketing.

Thankfully, ClickPost has your back. As of now, it has partnered with 350+ carriers that handle your order fulfillment seamlessly. You’ll get time-to-time shipping updates on a centralized dashboard.

Plus, it also sends automated notifications, manages failed deliveries, and takes care of all the return processes. Walmart has also partnered with ClickPost to enhance customers’ post-purchase experience. 

Final Words!

As you saw, multi-channel eCommerce has hundreds of moving parts. But, when managed well, it can level up your eCommerce business growth within a short span of time. So, rely on these strategies, go for ClickPost, and make managing multi-channel eCommerce a breeze.