The Advantages and Disadvantages of Multi Channel Retailing – Is it Really Worthy?

Every retailer’s focus is finding the best way they possibly can to bring their products to as many people as possible. And while that used to be a lot harder, nowadays there are many ways in which they can do that through marketing, advertising and, of course, multi channel retailing. However, selling on multiple channels brings with it a bunch of different pros and cons that you will have to work with, or work your way around. In this article we are doing to discuss some of those multi channel retailing advantages and disadvantages, so keep on reading to see what they are.

Disadvantage: More costs

To start off, we are actually going to start with a disadvantage that is what most people are afraid of anyways. When you are only selling on one sales channel you have certain costs that you have to take care of, so it only makes sense that as the number of channels grow, those costs will also grow proportionally. Different kind of channels are going to bring different kinds of costs, for example more brick and mortar stores will increase the expenses when it comes to rent and maintenance, while different online marketplaces will bring different costs depending on where you are selling.

Advantage: You can collect data much better

When you are a retailer, one of the things that you need is data on your customers because that data can give you an idea of what your future growth will be as well as an idea of which are the items that people gravitate towards the most. When you sell on multiple channels, you get the chance to collect data from more places and form a lot more people and all that data will be a great tool for you to use in order to improve the way that your business works.

Advantage: A lot more profit

When it comes to multi channel retailing advantages and disadvantages, this one is pretty much a no brainer, and something that is actually logical. When you only sell on one channel that is your only source of revenue, but when you are selling on multiple channels, each of them is a way for you to make more money. When selling on multiple channels you are also available to your customers 24/7 which also increases the chances for you to make more profits.

As you can see, there is a case to be made for, both, why multi channel retailing is good, but also why it may be more work than it’s worth. Either way, we hope that seeing some of the multi channel retailing advantages and disadvantages in front of you will help you make the right decision for your business and figure out if this is something that your business really needs.

2018-04-24T14:50:19+00:00