As with every potential marketing strategy, there is a hailed list of pros and a somewhat masked set of cons to follow. Therefore, before employing the principles of any of these strategies for the sake of benefitting your business, a clear analysis of these must be carried out to decide whether they are in fact the best suitable strategy to fulfil a set objective.
Multi-Channel Retailing is a strategy being adopted by several brands and companies worldwide due to its obvious advantages. This eCommerce strategy involves a widespread approach to retailing by utilizing multiple platforms on the internet to reach potential customers. These platforms look beyond the company’s own website and/or physical outlet and may be social media, such as Facebook or Instagram, or another website. The idea is communicating with potential buyers on multiple channels, or as many channels as possible, to create a brand image and more opportunities for people to purchase your products.
A few of the reasons companies prefer to use this method is because:
With the use of multiple channels to reach people, the product is advertised to people that may not have been able to reach it otherwise. Moreover, people are made aware of the product without having to visit the product or company website.
Popularity of Social Media
Facebook, Instagram, Twitter and other such social media platforms have millions of users that companies see as potential customers. Creating a retail option on these platforms therefore attempts to channel this potential.
Being a prominent brand across several platforms can be a result of good and consistent marketing. This makes your product appear more desirable and therefore increases sales.
However, these few pointers are often forgotten:
As with any expanded form of business, multi-channel retailing proves itself to be difficult to manage. Creating several platforms for people to purchase your product makes it hard to keep track of sales and discounts- especially if retailing is done regionally.
Companies can never fully anticipate the magnitude of success their product can have online. Therefore, their inventory size may not necessarily meet the online demand of a certain good. This is especially true for smaller companies that have made themselves visible on multiple channels reaching a larger consumer base than they can cater to.
With numerous channels to manage, customers need may not be fully met. Resultant bad reviews coupled with high competition online may mean you lose more customers than you gain.
— Ohad Hecht (@OhadHecht) 6 de marzo de 2015