Over the last decade, multichannel ecommerce selling has become imperative to success for the growth of online businesses. As consumers expect greater levels of interaction across channels and uniquely personalized shopping experiences, a multichannel ecommerce strategy is key to success. From adapting to scrollable retail on social media platforms to expanding your brand’s presence into other retail locations, the time to embrace multichannel ecommerce is now.
Multichannel ecommerce allows your brand to be everywhere your customers are, all at once. By taking advantage of multiple platforms that operate independently you can continue reaching your loyal, existing customers where and how they want, while also targeting new sections of consumers with messaging that appeals to them.
What is Multichannel Ecommerce?
Multichannel ecommerce is the practice of selling products through multiple online sales channels. This can help you to expand your customer base to take up more of market share, reach consumers where they’re at, and drive profitability.
An ecommerce multichannel strategy will take advantage of a variety of digital sales channels including online brand stores (such as those powered by Shopify), digital marketplaces, and social media platforms. Some multichannel selling strategies also capitalize on different physical retail spaces, including brick-and-mortar stores or shelf placement in wholesale stores like Walmart.
Not only are multichannel ecommerce strategies about allowing sellers to best reach shoppers where they’re at, they’re also about embracing a growing need for brand presence extending beyond your typical marketing avenues. As more and more sellers flock to ecommerce, taking up a greater share of the market has become critical– making multichannel sales perfect for brands that want to remain relevant across platforms.
Benefits of multichannel ecommerce for retailers
By adapting a multichannel sales strategy, brands and sellers can expand their customer reach, increase brand awareness and visibility, achieve a greater level of competition, and ultimately see increased revenue and profitability.
A multichannel ecommerce strategy allows brands to connect with customers across various platforms, including social media, meeting the shopping preferences of today’s consumers who often use multiple channels during their purchasing journey.
Improved Customer Experience and Engagement
Today’s consumers expect absolute convenience and flexibility when it comes to their shopping experiences. By offering your products on different sales channels, retailers meet customers where they prefer to shop, whether it’s on social media, an online marketplace, or in a physical store.
Not only does this approach give customers multiple opportunities to make a purchase, it also enhances the overall shopping experience through increased trust and comfort. By meeting customers where they’re at, across multiple sales channels, you’ll see a boost in engagement across social platforms and drive customer loyalty long term.
Enhanced Brand Visibility and Awareness
Selling across several platforms ensures that your brand is visible to a broader audience, especially if you can adapt to multiple platforms that attract unique demographics. Increased exposure can lead to better recognition and recall, driving that ever elusive brand awareness and reputation. Over time, this will make your brand a go-to choice for consumers in your niche.
Pro Tip: Your brand’s presence should be cohesive across all your sales channels, but not identical. By creating slight variations in how you present and market your brand on different platforms, you’ll be able to attack and appeal to a greater audience.
Remember, if you’re selling on an ecommerce marketplace each platform has its own built in audience that you can take advantage of. The more marketplaces you expand to, the more potential customers you’ll be able to reach.
Ability to Reach More Customers and Expand Market Share
With multichannel ecommerce, brands can tap into previously inaccessible customer segments. Whether it’s niche shoppers on Etsy or global buyers on Amazon, retailers can grow their market share by strategically utilizing various channels.
Consider what the average demographics of a consumer on all your selected channels looks like. While there will likely be some degree of overlap, there will also be a significant amount of variation from one online store or marketplace to the next. Take advantage of this information to inform different customer personas, segmenting and targeting advertising strategies accordingly in your multichannel ecommerce marketing.
Improved Competitiveness in the Market
Operating on multiple platforms levels the playing field, allowing smaller retailers to compete with larger brands. By leveraging the strengths of each channel, you can adapt to market demands and maintain a competitive edge.
This is especially important if you’re a third party seller looking to resell any products and need to compete for the elusive “Buy Box” on any marketplace. By maintaining a competitive edge you’ll have greater marketplace agility and flexibility, ensuring that you’re never relying on one channel.
Increased Revenue and Profitability
Multichannel ecommerce strategies allow retailers to diversify their income streams by selling on various platforms. While this may lead to a decrease in sales on one channel initially, it typically leads successful sellers to see much greater combined profits across all channels.
A multi channel strategy also reduces heavy reliance on one or two channels, providing stability and increasing long term profitability. With access to more customers through multiple avenues, sales opportunities grow, and businesses can achieve higher revenue.
Choosing Your Ecommerce Channels and Marketplaces
As you investigate multichannel ecommerce selling strategies, it can help to focus on which online spaces can help you reach your target audiences. By narrowing down where you intend to sell you can begin making important decisions for your brand. While there are endless possibilities for avenues to take advantage of in multichannel selling, some of the most popular include:
Online Sales Channels
Many of today’s retail spaces exist primarily online, so it’s important to decide if you’d like to own your own website or take advantage of digital marketplaces. Many ecommerce brands start with their own website and then expand into ecommerce multichannel strategies, but just as many begin on a marketplace and then start to establish their own branding and marketing later when seeking to take advantage of multichannel ecommerce.
Brand-Specific Online Stores
To have the most control over your brand and the shopping experience, you can build your own ecommerce website dedicated to your brand. Not only does this provide complete control over the customer experience and interface, it also allows you to directly collect customer data through your website, which is crucial for multichannel marketing.
Platforms like Shopify and WooCommerce empower businesses to build these personalized shopping environments. These platforms also typically integrate seamlessly into multi channel managers, like Base, which are designed to help streamline backend processes like inventory management, marketing, and more.
Google Shopping
Google Shopping allows products to appear in Google search results, increasing brand visibility. Google’s wide reach and user-friendly interface make it an excellent tool for attracting online shoppers.
Online Marketplaces
This category includes everything from comprehensive warehousing and marketing specialists, like Amazon, to seller-based platforms that directly link buyers and sellers, like eBay and Etsy.
When deciding on marketplace platforms to expand your brand onto, it’s important to consider the tools that you will need to succeed. While many selling sites offer storage, fulfillment, advertising services, and more, others expect the seller to manage this on the backend. Before committing to a marketplace be sure that you can comply with the expectations, as well as the unique terms and conditions for selling.
Amazon
Amazon remains the world’s largest online marketplace with over 300 million active customers, offering vast reach and reliability. Their reputation for fast delivery and easy returns makes Amazon a customer favorite. Amazon dominates the ecommerce space, offering unparalleled access to a massive customer base.
Retailers benefit from features like Fulfillment by Amazon (FBA), which handles storage, shipping, and customer service. Amazon also provides advanced advertising tools such as Sponsored Products and Sponsored Brands, enabling sellers to increase product visibility.
However with just under 10 million sellers it is a highly competitive marketplace for brands. Amazon also imposes a fee for selling on their marketplace, as well as steep prices for their multitude of services and tools.
Walmart Marketplace
Walmart Marketplace is a rapidly growing platform with over 100 million monthly visitors, ideal for reaching a diverse audience, especially with no selling fees. Walmart Marketplace combines the strength of online and in-store shopping for a seamless experience.
Walmart’s online marketplace provides access to its loyal customer base and its integration with physical stores enhances omnichannel possibilities. Walmart’s “TwoDay Delivery” program is a significant draw for customers seeking fast and reliable service.
While Walmart Marketplace shows a great deal of promise for sellers looking to take advantage of an up-and-coming platform, it’s important to keep in mind that it does have a vetting process for brands and sellers. Before you can start selling on Walmart Marketplace you’ll have to complete an application and be approved by their team.
eBay
Known for auctions, eBay caters to over 183 million active buyers worldwide. Its flexibility supports both new and used goods, making it a versatile choice for sellers.
eBay’s auction model is ideal for unique or collectible items. Retailers can also list fixed-price items to cater to buyers who prefer instant purchases. The platform’s international shipping program simplifies cross-border transactions, making it easier for sellers to reach global audiences.
However, it’s important to keep in mind that eBay does not have the same level of reputability as Amazon or Walmart Marketplace. Additionally, its direct seller-to-buyer structure can make it difficult for brands to scale their presence on the digital marketplace.
Etsy
Specializing in handmade and vintage items, Etsy provides a unique marketplace for creative entrepreneurs. Sellers can showcase their craft and connect with a niche audience passionate about unique products. Etsy caters to niche markets such as handmade goods, vintage items, and craft supplies. Its community-driven platform is perfect for small businesses with unique offerings.
While this may offer the perfect mix of opportunity and community nurturing to small brands, Etsy can be difficult for bigger brands to navigate as it is built heavily on personal interactions and connection.
Social Media Platforms
As social media has evolved and platforms like TikTok and Instagram have introduced native shopping features, social commerce has taken up an even greater share of the market. By allowing users to browse and check out without leaving their favorite social media platforms, a new ecommerce multichannel platform has been created for brands to take advantage of.
Today Facebook remains the largest social media app, boasting 2.7 billion monthly active users. Facebook’s robust advertising tools and integration with Shops make it a powerful channel for ecommerce. These features allow businesses to create a virtual storefront and engage directly with customers. On top of this, features like Messenger for customer service, make the platform an all-in-one channel for engaging shoppers.
Instagram is home to more than a billion users and is also owned by Facebook’s parent company, Meta. In it’s current iteration, Instagram Shopping allows businesses to tag products in posts and Stories, enabling seamless purchases.
Its visual nature is ideal for showcasing product aesthetics, especially for lifestyle and fashion brands. Influencer partnerships on Instagram further amplify reach, tapping into established audiences, along with those same Facebook advertising features available.
Twitter’s real-time nature makes it excellent for product launches and customer engagement. Businesses can use hashtags to increase visibility and connect with trending topics. The platform’s concise format allows for direct, impactful communication.
While Twitter does not currently offer in-app shopping capabilities, its “right now” nature lends itself easily to brands looking to stir up buzz or launch a timely promotion. Clear and public communication functionality also makes it the perfect channel to clear up customer inquiries quickly, boosting brand reputation and driving visibility for other ecommerce multichannel avenues.
Pinterest is a discovery-focused platform, ideal for products related to home decor, fashion, and DIY. Its “Buyable Pins” feature simplifies the shopping process for over 320 million active users. Retailers can also create themed boards to inspire shoppers and encourage purchases.
Brick-and-Mortar Stores
Physical retail locations complement online sales by offering in-person experiences, enabling omnichannel strategies such as “buy online, pick up in-store” (BOPIS). This integration builds trust and provides a tactile shopping experience that digital channels just can’t replicate.
Managing Inventory and Product Information Across Channels
Strategies for Inventory Management
Effectively managing inventory across multiple sales channels is critical to maintaining a seamless customer experience and avoiding stockouts or overselling. Key strategies include:
Centralized Inventory Management
Implement a centralized inventory system to track stock levels in real-time across all sales channels through automatically syncing inventory. This ensures accuracy and prevents over- or under-stocking at critical times of the year, such as around the holidays. Multichannel management systems, like Base’s Product Manager, can not only help you keep inventory management in check, but also streamline every step of the multichannel ecommerce.
Dropshipping
Leverage dropshipping models to reduce the burden of managing physical inventory. By partnering with suppliers who handle storage and fulfillment, businesses can scale more easily without significant overhead costs.
Buffer Stocking
Maintain a buffer stock to account for demand fluctuations and unforeseen delays in restocking. This strategy minimizes the risk of disappointing customers due to inventory shortages.
Product Information Management
Product data consistency and quality are vital for ensuring a cohesive shopping experience across all selling channels. Here’s how businesses can manage it effectively:
Tailoring Product Data
Adjust product descriptions, titles, and images to fit the specific requirements of each sales channel. For instance, Amazon’s guidelines for product titles may differ significantly from Etsy’s.
Automated PIM Systems
Use a Product Information Management (PIM) system, like Base’s Marketplace Manager, to centralize and standardize product data. These systems allow businesses to make updates universally, ensuring consistency across all platforms.
Enhanced Product Presentation
Invest in professional-quality product images and detailed, keyword-rich descriptions, optimized for SEO (search engine optimization) to attract and retain customer interest. High-quality visuals and compelling copy convey professionalism and build trust.
Multichannel Ecommerce Marketing and Advertising
Driving Product Discovery Online
Reaching customers online involves strategic marketing techniques that maximize visibility and engagement. These strategies include:
- Search Engine Optimization (SEO): Optimize product listings and website content for search engines to increase organic traffic. This involves using relevant keywords, optimizing meta descriptions, and creating high-quality content to attract a specific customer base.
- Pay-Per-Click (PPC): Leverage PPC advertising to target specific customer demographics. These campaigns, whether on Google Ads or social media platforms, like Facebook and Instagram, drive traffic to product pages and boost conversions.
- Social Media Advertising: Create visually compelling ads tailored to the aesthetics and user base of platforms like Instagram, Facebook, and Pinterest. Interactive formats, such as carousel ads or Stories, drive higher engagement. Social media platforms are also the perfect avenue to create organic engagement with your content and reap the benefits of user-generated content (UGC).
Using Retail Media
Retail media provides opportunities to enhance visibility and stand out among competitors in your multichannel ecommerce marketing strategy. Consider the following options seriously when :
- Sponsored Products and Brands: Platforms like Amazon and Walmart offer paid placement opportunities, allowing retailers to showcase products in prominent positions. Although this type of media can be expensive and is highly platform dependent, it often has a very high return on investment (ROI) for your brand, both in terms of sales and brand visibility.
- Building Credibility Through Reviews: Positive reviews and high star ratings significantly impact purchasing decisions and create credibility and trust through peers. Encourage customers to leave reviews by offering post-purchase incentives or requesting feedback.
Pro Tip: Make sure to comply with the rules for requesting reviews on each channel, as they often vary. While you may be able to offer incentives for review on your brand websites, many ecommerce marketplaces prohibit this practice.
Advertising on Multiple Channels
Adopting a multichannel advertising strategy ensures businesses reach customers at every touchpoint and never become fully dependent on one sales channel. While pouring all or most of your advertising into a single sales channel may be profitable initially, it will leave your brand vulnerable in the long run.
Instead, it’s wise to invest in marketing strategies that reach beyond a single platform:
- Multichannel Campaigns: Design cohesive advertising campaigns across platforms, reinforcing brand identity and creating a unified, but unique, message about what customers expect.
- Retargeting Campaigns: Re-engage potential customers who have abandoned shopping carts or browsed products without purchasing across Google shopping and social media channels. Use dynamic ads to remind them of items left behind in their online shopping.
Fulfillment and Operations for Multichannel Ecommerce
Understanding Channel SLAs and Fulfillment Requirements
Managing fulfillment and operations across multiple sales channels is a complex but critical aspect of multichannel ecommerce success. Each platform has unique Service Level Agreements (SLAs) and requirements that sellers must meet to maintain their credibility and standing. Here are some strategies to ensure smooth operations:
Compliance with Platform Requirements
Understand Platform-Specific SLAs
Each ecommerce channel, such as Amazon or Walmart Marketplace, has its own SLAs concerning order processing times, shipping speeds, and return handling. Regularly review these agreements, or enlist a tool like Base, to ensure compliance and avoid penalties.
Dedicated Account Management
Assign team members or leverage software to monitor SLA adherence. Promptly address any discrepancies or delays to maintain good standing.
Offering Fast and Reliable Shipping Options
Customer Expectations
Today’s consumers expect brands to provide expedited shipping, with many preferring options like next-day or two-day delivery. Partnering with reliable carriers or leveraging marketplace fulfillment services like Fulfillment by Amazon (FBA) can help meet these demands. However, make sure that you’re not neglecting shipping and fulfillment on other channels if you take advantage of these services.
Geographic Optimization
Use distributed fulfillment centers to minimize shipping times and costs. For instance, having warehouses in key regions ensures that products reach customers quickly and can keep up with sales trends.
Real-Time Tracking
Provide customers with tracking information to enhance transparency and reduce inquiries about order status.
Standardization and Scalability in Fulfillment Operations
As businesses scale and add more channels, maintaining consistent and efficient fulfillment operations becomes essential. Here’s how to standardize and scale effectively:
Standardized Fulfillment Processes
- Use unified order management systems. Implement a centralized order management system, or invest in multichannel ecommerce software solutions, to process and fulfill orders from all channels. This reduces errors and ensures a uniform customer experience.
- Decide on consistent packaging. Use standardized packaging across all your selling channels to create a cohesive brand image. Include branded elements like logos, thank-you notes, and product inserts to enhance customer satisfaction.
Scalable Solutions for Growth
- Build flexible infrastructure that can support a multi channel ecommerce business. Invest in scalable warehouse management systems (WMS) that grow with your business. These systems help manage inventory levels, automate tasks, and optimize storage.
- Consider partnering with 3PL providers to handle increased order volumes without overburdening in-house resources.
- Look into on-demand warehousing that can help support your online channels. Use on-demand warehousing services to address seasonal or unexpected demand spikes during periods of business growth without committing to long-term leases.
Leveraging Automation
- Use robots or automated systems to streamline picking and packing processes, reducing human error and increasing speed of shipping and fulfillment.
- Invest in AI-driven forecasting for sales performance. Employ AI tools to predict demand, optimize stock levels, and adjust fulfillment strategies accordingly.
- Take advantage of barcode and RFID technology. Implement barcode or RFID systems to track inventory movement accurately and efficiently across all your multi channel ecommerce locations.
Optimizing Multichannel Ecommerce Performance
Enhancing operational efficiency directly impacts profitability and customer satisfaction. By optimizing your multichannel marketing strategies and multichannel ecommerce software solutions you will drive sales for your brand long term.
Maximizing Revenue and Protecting Profit Margins
- Dynamic Pricing Models: Use analytics tools to adjust pricing based on demand, competition, and inventory levels. Dynamic pricing ensures competitiveness without sacrificing profit margins.
- Inventory Turnover Analysis: Monitor inventory turnover rates to identify slow-moving products. Implement discounts or bundling strategies to clear out excess stock.
- Cost Optimization: Review fulfillment costs regularly, including shipping rates, storage fees, and labor costs. Negotiate better terms with logistics providers to improve margins.
Promoting a Strong Brand Image Across Channels
- Consistent Branding: Maintain uniform branding across all platforms. This includes logos, color schemes, and tone of voice in product descriptions and customer communications.
- Positive Customer Feedback: Encourage satisfied customers to leave reviews. Respond to reviews—both positive and negative—to show that your business values customer input and is willing to go the extra mile to meet expectations.
- High-Quality Product Presentation: Invest in professional photography and compelling product descriptions that highlight features and benefits. This reinforces brand credibility and drives conversions.
Common Challenges and Best Practices in Multichannel Ecommerce
Operating across multiple channels introduces complexities, but adopting best practices can help mitigate these challenges and improve sales performance across multi channel brands.
Overcoming Challenges
Selling on the Wrong Channels
Not all platforms are suitable for every product or brand. Use analytics to identify which channels drive the most revenue and best align with your target audience. Or, invest in research to understand which multi channels might hold potential for your brand and how you can capitalize on these opportunities.
Sales Attribution
Track customer journeys across multiple touchpoints to attribute sales accurately. Tools like Google Analytics or dedicated multichannel ecommerce platforms can provide insights.
Best Practices
Customer Journey Mapping
Understand the buyer’s journey to tailor marketing strategies effectively. For instance, use targeted ads for the awareness stage and retargeting campaigns for the decision stage.
Personalization
Enhance customer engagement with personalized recommendations based on browsing history, purchase patterns, or abandoned carts. In this day and age, consumers expect brands to know their wants and needs seamlessly, so take advantage of data collection across various channels to execute effectively.
Channel-Specific Strategies
Adapt your approach for each platform. For example, optimize listings with SEO-friendly keywords on Amazon or leverage visually appealing content on Instagram.
Measuring Success in Multichannel Ecommerce
Tracking performance metrics is essential for identifying strengths, weaknesses, and areas for improvement, regardless of whether you’re not your brand embraces a multi channel strategy. Here’s how to measure success effectively:
Key Performance Indicators (KPIs)
- Revenue and Profit Margins: Monitor overall sales and profitability across channels to assess business health.
- Customer Satisfaction: Use Net Promoter Score (NPS), reviews, and feedback to gauge customer happiness.
- Order Accuracy and Fulfillment Speed: Track metrics like order accuracy rates and average shipping times to ensure operational efficiency.
- Channel-Specific Metrics: Measure performance on each platform, such as conversion rates, click-through rates, and average order value.
Visualization Tools
- Dashboards: Use dashboards to consolidate and visualize KPIs. With all the information easily accessible in one view, you can identify trends and make data-driven decisions for your brand.
- Regular Reporting: Schedule regular performance reviews to assess progress toward goals and adjust strategies as needed.
Multichannel Ecommerce Management
Managing a multichannel ecommerce brand can be a difficult and overwhelming task without the right tools to support your business growth. That’s why Base offers sellers a fully integrated solution for multichannel ecommerce management, including order, shipping, product, and marketplace management, among a variety of other tools. You can get started today with Base’s 14 day free trial here.
