What are the benefits of a multichannel distribution system?

, , , ,
selling across multiple channels

In today’s retail landscape, you will notice that many e-commerce businesses do not limit themselves to just one selling platform. More online stores are selling across multiple channels to reach more customers and drive further sales.

Large retailers often have a brick and mortar store, an online store, and sell across online marketplaces such as Amazon and eBay. The past year has also seen the rise of social commerce, with more brands selling on social media platforms such as Facebook, Instagram and TikTok.

Although more retailers are opting for a multi-channel distribution system, it can be challenging for businesses to create a multi-channel strategy that is low on cost and maximises profit.

This article covers what a multi-channel distribution system entails, the challenges involved in a multi-channel distribution system, and implementing a successful strategy.

What is a multi-channel distribution system?

A multi-channel distribution system is a strategy where retailers sell across multiple platforms such as a physical store, social media and online marketplaces to widen their customer reach and generate further sales.

Importance of multi-channel distribution systems in e-commerce

When e-commerce businesses launch their online store, it is relatively simple to merge into new channels such as social media and online marketplaces and is an excellent way to diversify your customers.

Research shows that selling multi-channel is the future, with 56% of consumers stating that they are more likely to purchase from e-commerce businesses that create a seamless omnichannel shopping experience.

Further benefits of establishing a multi-channel shopping experience:

Widen your reach

Naturally, when you sell your products across multiple channels, you place your brand in front of new eyes, reaching a wider audience. Selling cross-channel is a practical way of diversifying your customers, helping you reach new demographics using channels such as social media.

Always available

Brick and mortar stores that expand across multiple channels make their business available 24/7, with customers have constant access to your brand. Continuous availability creates further opportunities for customers to buy your products, no longer restricted by store opening hours.

Increase revenue

Spreading your business across multiple platforms will ultimately lead to an increase in sales, helping to improve your bottom line. The new growth in sales will likely cover any costs in setting up your new sales channels.

That being said, businesses must have the right tools and resources available to maximise profit when implementing a multi-channel distribution system.

What are the challenges of a multi-channel distribution system?

Whilst selling cross-channel may seem like a no-brainer, it’s vital to consider the additional resources required as a result and the more complex internal operations.

Here are some of the most significant challenges of selling cross-channel:

Higher inventory costs

Increased sales can have a significant impact when it comes to inventory management. Businesses must ensure that there is complete inventory visibility to ensure that in-demand items are kept in stock, and there is sufficient warehouse space to store the increased number of goods.

Channel integration

Unless all your sales channels are integrated into the same inventory management software, it can be challenging to gain real-time updates on inventory levels. This issue could lead to out of stock items and backorders, which could lead to frustrated customers.

Internal operations

With increasing sales, it’s vital to ensure that all your internal processes are slick and organised to avoid delays to shipments to customers. Businesses must maximise their order fulfilment, supply chain management and logistics operations to avoid creating a negative customer experience.

How to create a successful multi-channel sales strategy

Whilst there are challenges in creating a multi-channel distribution system, businesses can be successful if they bear in mind the following:

Pick the right sales channels

Just because there is the opportunity to sell across multiple platforms doesn’t necessarily mean that each one is right for your business. Brands must consider who their customers are, how they like to shop and where they are located online when assessing the right sales channels.

Think about the products you sell and which platform would be best placed. For example, clothing and beauty brands tend to target younger audiences on Instagram and TikTok. If your brands sell everyday essentials, it could be more profitable to focus on the likes of Amazon and eBay.

Organised omnichannel data

E-commerce businesses must ensure that all data is synced when implementing an omnichannel sales strategy to get a clear picture of sales and inventory figures. Outsourcing your order fulfilment to a third-party logistics (3PL) company that offers platform integration will help you maintain single-source data to thoroughly overview all aspects of the fulfilment process.

Optimise your order fulfilment

It’s vital to have a fast and reliable order fulfilment process when going multi-channel and keep up with the increasing order numbers. 3PL companies are accustomed to dealing with high order volumes and can ensure that the quality and accuracy of orders picked, packed and shipped to customers remain on point at all times.

If your business has recently implemented a multi-channel sales strategy and is struggling to keep up with orders, it could be time to give Pointbid a call. Find out more about our dependable e-fulfilment services by giving us a call on 0121 326 7368.

 

Tell us your needs/requirements here...

5 + 0 = ?

 

Black Friday planning

Black Friday 2022 – Guide for ecommerce businesses

,
Black Friday is fairly new to the UK, but since its popularity spurt a few years ago it remains an extremely busy period for retailers and eCommerce stores and has been quite the learning experience for many shop owners. Its huge spike in demand…
warehouse fulfimenthttps://www.google.com/url?sa=i&url=https%3A%2F%2Fmentfield.com%2Fservice%2Fwarehouse-fulfilment%2F&psig=AOvVaw2Zi7kozxBcehmgvzkaYOxM&ust=1575105217994000&source=images&cd=vfe&ved=0CAMQjB1qFwoTCPi4z4eKj-YCFQAAAAAdAAAAABAj

Benefits of Outsourcing Warehousing Operations

, , ,
Benefits of Outsourcing Warehousing Operations. For help with e-commerce fulfilment, warehousing, storage, pick and packing, call Pointbid Logistics 0121 326 7368
christmas warehouse hours

Warehouse Operating Hours During The Christmas Period 2022

Please note the warehouse operating hours for this forthcoming Christmas season.
Electric vehicles

New Car Market Impacted by Supply Chain Squeeze

Freight prices are forecast to increase by two to seven times high in 2023, despite prices already being at record highs. According to Freightos, the average cost of shipping a 40-ft container from Asia to Europe is...
Ukraine

Russia’s Invasion of Ukraine Impacting Supply Chains

, , , ,
Transport Tightens as Russia-Ukraine War Escalates - Military conflict between Ukraine and Russia will deliver yet another blow to global supply chains, particularly those heavily reliant on energy resources. Ukraine is the second-largest country in Europe, and the clash with Russia has already...
warehouse fulfimenthttps://www.google.com/url?sa=i&url=https%3A%2F%2Fmentfield.com%2Fservice%2Fwarehouse-fulfilment%2F&psig=AOvVaw2Zi7kozxBcehmgvzkaYOxM&ust=1575105217994000&source=images&cd=vfe&ved=0CAMQjB1qFwoTCPi4z4eKj-YCFQAAAAAdAAAAABAj

Retail Logistics – Trends, Challenges and Tips to Improve

, , , ,
A retailer's success largely depends on the relationship between brand and consumer, with the ability to meet their expectations around fast, affordable delivery likely to enhance customer loyalty and boost conversion.
what is ecommerce shipping

Impact of Supply Chain Inflation on Consumer Prices

, , , ,
Supply chains have struggled to meet pent-up demand arising from COVID-19, and as a result, the shortages of goods and services has caused upward pressure on prices. Until kinks in the supply chain are ironed out, consumers will continue to experience elevated pricing...
Cyber Risks in the Logistics Industry

Navigating Cyber Risks in the Logistics Industry

, , ,
Many people wonder why logistics and transportation companies are targeted by hackers, especially when compared to other organisations, such as healthcare which store sensitive information that is valuable and protected by law...
ecommerce fulfilment services

E-commerce Fulfilment Services – Are They Right For You?

, , , ,
You may have heard about outsourced e-commerce fulfilment services, but you may not fully understand what it is and whether it's of any benefit to you and your business. But don't worry, take a look below where we have answered some of the most…
ecommerce online shopping

How to maximise e-commerce profitability in 2022

, , ,
How to maximise e-commerce profitability in 2021 - Despite the dramatic rise in online sales, maintaining profitability within e-commerce can still be a concern for business owners, particularly given the uncertainty surrounding post-Brexit trading rules and customers seeking value for money amid the pandemic.
inventory management

What is Inventory Control? Tips and Optimisation Techniques

, ,
Tips & Techniques for Inventory Control. For help with e-commerce fulfilment, warehousing, storage, pick and packing, call Pointbid Logistics 0121 326 7368
international shipping

How to Choose the Right Shipping Carrier for Your Business

, , , ,
Read our Guide on How to Choose the Right Shipping Carrier for Your Business. For help with e-commerce fulfilment, warehousing, storage, pick and packing, call Pointbid Logistics 0121 326 7368
0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *