Multi channel retailing is an advanced method of retailing, whereby a retailer is present with his stores at every point where customers arrive. Thus a retailer does not have to wait for customers to visit his website or retail stores. It also helps a retailer to increase interactions with the customer. Thus a retailer is able to build a strong working relationship with the customer.

There has been a significant increase in customers looking for multi-channel shopping paradigms over traditional single channel outlets. Studies have revealed that multi channel retailers have seen a manifold increase in customer visits, compared to single online-outlet retailers.  It also reveals that over the year’s customers prefer the online channel as the most important channel to research and buy. And this has happened at the cost of traditional channels like stores and catalogue.

Multi-channel solution providers like eBay integration and Amazon integration are facing some challenges. Some of the challenges that retailers who follow multi-channel retailing have to face are:

Solution Simplicity

The core of multi-channel solutions involves some legacy processes and systems. This may make a customers shopping experience quite complex. So the first and foremost challenge lies in simplifying the customer’s shopping experience.

Multi-channel Governance

Multi-channel alignment often gets hit due to organizational structure. Traditional organization structures lays emphasis on functional capabilities like supply chain management, merchandising, marketing etc. They also have a second layer of silos which take care of functionalities like order management, inventory tracking etc. The challenge today lies in building unified solutions for common problems. Executing the unified solution is an equally big challenge.

Enabling ground level multi-channel operations

Another key challenge is to manage ground level operations. Proper efforts must be taken to make field staff such as store associate and customer service representatives understand the benefits of cross channel benefits. Achieving this through proper training and incentives is a key challenge.