Today’s consumers use many methods to research and make purchases. Some search for product demos on TikTok, some compare options on shop engines like Google Shopping, and some still move offline and into physical retail stores. In response, retailers are selling in multiple channels at once, spreading a wider net and increasing the odds of a customer discovering (and buying) their products.
You want to give your future customers every opportunity to make a purchase. Adopting multichannel retailing is one path to success.
What is multichannel retailing?
Multichannel retailing means selling goods and services across multiple locations and online sales channels. This strategy can seem overwhelming at first, and for good reason — there are dozens of places to sell products, each with its own guidelines and requirements. But with time and research, you can create a plan that helps you find new customers and increase your profits.
Multichannel retailing is often confused with omnichannel retailing. Omnichannel retailing gives your customer multiple routes toward making a specific purchase, like a targeted Instagram ad that reminds customers of the items in their online cart. The multichannel market refers to the many ways a company can sell goods. Omnichannel creates a cohesive and integrated customer experience, and multichannel makes sure every channel runs smoothly independently.
5 common types of multichannel retailing
Imagine you’re looking for a new hair dryer. It’s a crowded market, with thousands of choices at a wide variety of price points. How do you know which one will meet your needs, and how much should you be prepared to spend?
You’ll probably look around for the best product and deal before making a final purchase — and that’s why multichannel sales works. When you sell across multiple channels, you’re meeting your customers where they are, or more specifically, where they shop. This increases the chances a customer will discover and purchase your product.
Here are the five main channels to know about:
1. Social media
Consumers often turn to social media to research future purchases. Apps like TikTok, Instagram, and Pinterest make it easy to discover new products and watch them in action. They also let users search with keywords that match their specific needs, like “best hair dryer for curls” or “best hair dryer under 100 dollars.”
Almost all social media platforms now offer in-app shopping, which means customers can discover, compare, and purchase your products — all without pausing their scroll. This makes it easy for people to buy from you, which increases your chances of making a sale and a profit.
2. Your online store
Wherever a customer discovers you, they’ll probably visit your website before they decide to buy. Make it easy for customers to learn about and purchase your product. Online stores should be branded, easy to navigate, and include clear paths for visitors to make a purchase.
Many retailers also use their sites to host blogs or personalized quizzes. This kind of high-value content keeps shoppers on your site longer, increasing the likelihood of a sale.
Your website should also be optimized for mobile commerce on phones, tablets, and other devices. Customers often make purchases on the go, and they might click away from your site if it’s not performing well.
3. Search engines
Where’s the first place you look when making a purchase? You might have a retailer you prefer for things like cosmetics or athletic gear, but if you’re moving into unfamiliar territory, you’ll probably start with a quick online search.
Most search engines allow retailers to advertise within search results — Google Ads being the most common example. This kind of cost-per-click (CPC) advertising can bring your products to the top of the search results and make your brand more visible to shoppers. Most people don’t look past the first page of results, so securing that top spot is a great way to increase recognition and sales.
4. Ecommerce stores
Third-party online retailers are another great way to encourage brand discovery. Large companies like Target and Amazon have loyal consumer bases who use them for most of their purchases. These loyal customers might not discover your brand if you’re not selling in the places they like to shop.
Smaller retailers can also be valuable partners as your company grows. Third-party vendors are often focused on a particular niche, which means that a customer looking for a related item on their site can find your products as well. You make a sale, and the retailer has provided their customer with a positive experience.
5. Brick and mortar
Online shopping may seem ubiquitous these days, but many shoppers prefer to examine, try on, or experience products in real life. Opening a physical location can be a key piece of your overall strategy, especially when combined with the online options listed above.
Benefits of multichannel retailing
There are obvious benefits to a multichannel approach beyond just an increase in sales.
More potential customers
Selling your products in more places means more shoppers will find you. Plus, customers who convert from online marketplaces and search engine traffic can also become brand loyalists who continue to purchase from you in the future.
Multichannel marketing also means customers could encounter your brand multiple times throughout their search. This increases brand recognition and keeps your company front of mind as they’re making a final decision.
Profits and growth
If you only have a brick-and-mortar store, people who can’t get there can’t buy from you. And if you only sell on TikTok, non-users will never find you. Making products available in a variety of locations can increase the odds of a purchase.
This leads to more profits, but it also leads to more opportunities. Identifying new customers gives you more information to brainstorm new product lines, marketing tactics, and possibilities for expansion. All of these factors lead to better sales and a strong foundation for future growth.
Valuable consumer data
Multichannel retailing gives you insight into what customers want and how they shop. Maybe a certain product line sells well on Instagram, and another sells better when customers can sample it in your physical store. Maybe subscribers to your email list respond to a sale more than your Facebook followers. Comparing results from different channels helps you refine your marketing strategy and create a genuine connection with your audience.
Multichannel retailing challenges
Keep these considerations in mind while adding sales channels to your operations.
Price of investment
Multichannel retailing can earn you money in the long run, but the initial costs add up quickly. Social media stores and third-party vendors take a share of your profits, websites and physical stores require hosting and rent, and CPC costs more as your traffic increases.
In most cases, you have to pay something up front before you can start to turn a profit. Factor this cost into your market strategy and budget when adding new channels.
Inventory management
Selling through multiple channels can make it difficult to stay consistent. Customers might become frustrated with your brand if your products sell out too quickly or are priced and described differently on every site. Staying on top of inventory can prevent customer complaints and keep shoppers coming back to your brand — which means more sales.
Every channel you add requires changes to your system, and third-party logistics get complicated. For successful fulfillment and satisfied customers, you need a way to track inventory and sales across platforms.
Multichannel inventory management explained
Scaling your company through multichannel retailing requires a real-time inventory management system. Smaller companies may be able to get by with spreadsheets, but the more you grow, the more variables you’ll have to consider.
If you want to streamline sales, prevent loss, and provide a positive shopping experience that brings customers back for more, add multichannel inventory software to your retail strategy — like Fishbowl.
Stay ahead in the competitive retail landscape with Fishbowl
Maximize your potential with Fishbowl, a powerful all-in-one inventory management software. Fishbowl seamlessly integrates with your existing point-of-sale and accounting systems, giving you clear visibility across retail channels. Plus, Fishbowl helps you streamline stock, reduce errors, and gain valuable insight into your customer base so you never miss a sale.
Ready to take control of your retail operations? Schedule a demo and see how Fishbowl can help you track sales, no matter where your customers shop.
