Over the years, eCommerce has come so far that many retailers are getting an advantage to increase sales and revenue for their businesses, year on year.
This year, you may have heard a lot about terms like multichannel retailing, multichannel selling, omnichannel selling, cross selling. Most of the retailers are already taking benefits of this profit making strategy, however for those who have not, then this article is for you.
Multichannel retailing - The buzzword for retailers 2015
Multichannel retailing is a practice when retailers don’t tie themselves selling over a single channel, instead, list their products across different sales channels. These include brick-and-mortar stores, direct sales order over the phone, as well as online selling such as websites and marketplaces, both in local as well as international markets.
This strategy has already proved to be a bliss for many start-ups and medium business owners for their growth strategy. And, with increasing number of marketplaces, retailers must adopt the idea of selling their products online, differently. Because, multichannel sales growth is estimated to boom over the coming years.
Adopt multichannel retailing to increase profits by:
- Increasing the number of sales channels
By listing your products across various channels, will allow you increased marketing opportunities. Some may do good while other may not bring in results as per your expectations, however having an ability to sell over multiple platforms, you can easily test your products line and focus more on those channels that are doing well, to divert more and more revenue for your retail business.
- Reaching out to wider audience
Today, selling products via leading marketplaces Amazon, eBay will help you with a readymade customers base. This means you don’t have worry about diverting traffic for your brand, as millions of online shoppers regularly visit these sites for making purchases. This way without much investment, pushing and promoting products to as wide an audience, as possible, will automatically increase sales and revenue for your retail business.
Ways that can help you make the most out of multichannel retailing
- Adopt a multichannel order management system
By implementing a multichannel order management system, you can boost efficiency when it come to sales. Such systems will automatically sync orders coming from multiple sources under one roof, allowing you and your staff to quickly access information about products such as location, price and availability. Knowing this you can speed up order fulfillment process, leaving customers more satisfied and staff at peace.
- Integrate inventory across all your channels
Multichannel retailing will help you grow only if managed well. And, speaking about managing various sales channels, tackling inventory has always been a biggest challenge. Adopting a centralized inventory management system, you’ll have an access to information such as product availability and warehouse across all your selling channels. There be no risk of overselling and you can always fulfill your customer’s orders on time.
Orderhive makes multichannel retailing easy, allowing tools to centralize and automate your inventory management, order fulfillment, along with intelligent reporting, each of which will save you time, cost- whilst making it easy to explore new markets for your products and increase profits for your business.
One of the major aspects for all retail businesses, is to procure products and supply them to their end-customers. And, with the increasing popularity and growth of retail industry (including e-commerce) has automatically proved to be a boon for most of the shipping providers, too.
Before the advent of technology and cloud-based software solutions, most of the retailers survived on their own distribution centers, when products were procured and supplied to customers in bulk. This old model was popular and successful for a decade, however in the year 2000, with the immense popularity of internet shopping, many retailers were forced to have a presence online to cut-throat competition among various e-commerce brands. But ,at the same time, apart from being competitive with the product pricing they needed to focus on the speed and quality of the product delivery too. This is when, shipping companies were forced to come up with a new distribution model that would allow procure items in bulk and then break down silos, so that each customer’s order can be fulfilled by SKU. However, this required a real time inventory management software solution in place to gain visibility of all your products in real-time.
With the advent of internet shopping and the help of technology, fueled the logistics boom at exponential rates across the globe. How?
Key retail operations that are allowing shipping companies to grow:
1- Product delivery at customer’s doorstep
Internet shopping has initially captured the hearts of shopaholics by allowing them an ability to purchase for their favorite brands over the web and receive its delivery at their own convenience. This created a buzz in the online world, but at the same time retailers had to increase its supply chain, which automatically enforced shipping companies to expand their services and reach to almost any customer, anywhere.
2- Omnichannel delivery experience
As and when technology evolved, customer’s demand was ever-changing and they now prefer brands that allow them with flexible delivery options. Modern customers now expect that retailers should allow them to receive product delivery in every possibility they can- that includes Same-day-delivery, Next-day-delivery, Fixed-day- delivery. With customer’s ever-changing demands with their product delivery, automatically forced shipping companies to upgrade their supply chain method, which in turn allowed them to grow by helping retailers to provide their customers with product delivery as per their requirements.
According to 2014 Retail Outlook Survey by KPMG LLP- 70% of retail executives have adopted omnichannel strategies to respond to today’s online and mobile consumer. Therefore, shipping companies who are assisting retailers to provide their customers with the most seamless omnichannel delivery experiences- are gaining a huge advantage over other companies in the shipping industry.
3- Increase in retail sales
A report by eMarketer, the estimated total retail sales is expected to grow by 5.5% to reach $28.300 trillion.
While the above projections are encouraging for the shipping companies, it's important they upgrade to a more-robust and consistent supply chain and logistics mechanism. And, the easy availability and use of shipping management software, has surely changed the way shipping companies co-ordinate with retailers, following smooth supply chain processes.
Today, customers prefer to shop from brands that allow them an omnichannel shopping experiences. This means, you'll need a system that offers an ability to easily identify, track, modify, and process tasks of virtually any type of orders.
Do you have one in place?
Modern shoppers expect a complete control when placing an order, accepting deliveries, and dealing with returns. And, if you are unable to fulfill any of your customer's demand, they'll immediately jump to one of your competitors that allows them to do so.
Lately, successful order management system are offering retailers a centralized solution, so that customers can make, receive, and return orders from any channels they want.
In what way or manner can an order management system help you meet customer's demand?
An order management system allows a centralized hub from where you can:
Access any order, anytime
Having an ability to manage orders from customer's point of view, will help you gain a perfect omnichannel solution in place. Using an order management system you can accept and access any of your customer's orders and process them as per their priorities, from the place you are. Also, most of these systems allow real-time alerts whenever an order arrives. This way, you can proactively fulfill your customers orders as per their demands.
With an ability to gain complete control over orders will help you unify customer experiences. For instance, if you have already shipped the customer's order and the customer contacts you for it's delivery to another address, how will you manage it? In such cases, order management system will allow you instantly track order status in real-time and immediately coordinate with the right person, ensuring you don't miss out any chances in offering your customers with the best omnichannel shopping experiences.
Also, having real-time visibility of product performance, you can predict what is in demand and sufficiently stock them to fulfill customer's demand, always!
Allowing an ability to connect every channels and fulfillment options under one roof, business owners can synchronize orders and offer delivery according to customer's choices. Accommodating the buy anywhere, fulfill anywhere, and return anywhere module, these systems prove to be an ideal solution to address any of our customer's demand, at ease.
Easy 3rd party integration
Most of the order management tools offer easy integration with 3rd party services that could help you offer your customers with more flexible and omnichannel fulfillment options, that they would like.
Gaining real-time insights of all channels and fulfillment positions, you can make use of your resources in the best possible ways- reducing manpower costs and utilizing it to provide new customer experiences, which will create a buzz among shoppers as well as increase revenue for your business.
Simple, yet powerful