Multi-channel retailing has gained wide acceptance. However, to gain complete acceptance, it still has a long way to go. Many retailers have studiously shunned away from adopting this strategy because of certain constraints.

There are three key reasons because of which retailers are averse to pursuing multi-channel retailing. They are (a) consumer access to Internet, (b) operational difficulties of integration, and (c) cost and knowledge constraints.

Limited broadband access:

Not very long back people had very limited access to the internet. So retailers are skeptical about the reach which multi-channel retailing can have. Though this is of less concern in the US today, it still is a major constraint in some countries. According to latest study broadband penetration in countries like Mexico and the Turkey is less than 10%.

Operational Difficulties:

Operational synergy for multi-channel integration is hard to achieve. This is because unique skills and resources are required to effectively handle each of the channels. Retail distribution centers (DC), for instance, which supports a store channel, helps in cross-docking, the merchandise. However the distribution centers with a catalog and Internet channel has nothing to do with cross docking Merchandise which reach the centers are picked, repacked, and shipped to individual customers.

These channels also need varied type of packaging to take care of shipments of personal items. Handling inventories and merchandise in a channel with numerous stores, demands much superior skills. Compared to this handling inventory in a few distribution centers does not require much skill. Usually the channels target markets of a different kind. This kind of marketing requires typical merchandise and different kind of pricing.

Another operational difficulty is the difference in marketing activities. In Internet channel marketing, the thrust lies in attracting consumers to the store or website. But a catalog channel strives to push the product to specific consumers. So, many multi-channel retailers have separate organizations for each channel.

Cost and Knowledge Constraints:

Other deterrents include costs of opening stores with national coverage lack of knowledge and experience in negotiating leases, training and managing a large workforce etc. Some are concerned about the negative impact on their brand image.