Multi channel retailing advantages and disadvantages

Multi channel retailing advantages and disadvantages: a short guide

In the past, consumers had only one option – to go to land-based stores and buy goods there. However, starting from the 1990s, the things have changed. The introduction of the Internet has allowed consumers to buy things online. With the emergence of smartphones, this activity has become even more convenient because people can buy things on the move too. That’s why we have multi channel retailing now. This is a type of retailing where businesses provide more than one options to consumers and it’s up to the consumer to choose the channel that suits them the most. To learn more about this concept, we will highlight multi channel retailing advantages and disadvantages.

Pros

First of all, we should mention that if you are offering multi channel retailing services you will boost the number of sales. This is quite natural because you will cover almost all the options that people need when they want to buy things. The more channels you add the better.

Next, thanks to this specific kind of retailing, you will be able to learn more about customer behavior and make a good plan for the growth and expansion of your business. In other words, you will take almost complete control of the buying process. With the help of multi channel retailing you can provide specific goods to the target audience. In case you have a few or even dozens of different types of products like smartphones and tablets, for example, you will be able to offer tablets on a marketplace where more people come to buy this type of products. The same goes for the smartphones.

Cons

Of course, there are some potential disadvantages associated with this retailing, but these issues are small and they can probably be avoided. For example, it’s true that once you start practicing this approach, the expenses will go up. For instance, you will have to pay a monthly fee for the use of multichannel eCommerce platforms. But, this problem will be eliminated with the increased sales. Additionally, you will have a more difficult job when it comes to stock management. If you want to stay away from this problem, you should invest in specific software solutions.

Thanks to multi channel retailing you will get an opportunity to get in touch with your clients on more than one channel. This is an excellent way to grow your business without making huge investments.