4 Signs Your Retail Company Needs an Omnichannel Transformation
If you have a retail company that has been in business for several years or decades, you know how marketing and sales have changed over time. If you are struggling to adapt to the growing demands of customers for e-commerce logistics and order fulfillment, it may be an indication that you need an omnichannel retail strategy. An omnichannel retail strategy incorporates a variety of channels that a business can use to engage consumers and connect with them more efficiently. For instance, in addition to having a physical store, retailers may use social media, online inventory systems, or launch an e-commerce option on their website to improve business and the consumer experience.
Here are four common signs that your retail marketing strategy needs an upgrade.
Sign #1: Duplicate Inventory System
One of the simplest indicators that your retail company needs an omnichannel transformation is if you are dealing with duplicate inventories of product. If one of your inventories is for supporting your store distribution and the other is for fulfilling e-commerce orders, you may need to adjust your inventory management strategy.
Dual inventories can cause several problems, such as potential stock accounts and added costs due to any needed transfers between the two inventories. In the long run, this can lead to higher markdowns and clearance costs if your unsold products become trapped in one channel when they could have been sold in the other.
Sign #2: Payment Options
Nowadays, consumers expect a variety of payment options when they look to buy something from a retail company. If your retail business isn’t delivering, then it’s time to consider an omnichannel switch.
Flexibility with payment options, such as the ability to pay across channels, is key to a successful omnichannel strategy. You should be able to support multiple payment types and maintain consistency for your online and in-store payments methods, as it will allow you to provide a unified customer experience.
Sign #3: Excessive Store Size
Have you ever wondered if it was possible to reduce your store’s footprint and still drive a higher “sale per square foot” number for your business? An omnichannel strategy allows you to reduce your store size and inventory investment, and still improve your internal rate of return on invested capital. So if your store size seems excessive or is hard to manage, it’s time to reassess your needs.
Sign #4: Lack of Consistency
A sign that you need to transform or upgrade your retail strategy is if you do not carry the same items online as you do in-store. Customers find this extremely frustrating, especially in terms of apparel. Oftentimes, customers will see a garment online, and then go to the store to try it on. If they make the trip and find out that the item is not carried in-store or is out of stock, you may suffer the loss of a customer.
Omnichannel strategies can eliminate this problem by synchronizing your inventory tracking so customers can see exactly what you have in-store and online.
Outsource Your Omnichannel Strategy with Lean Supply Solutions
If you are looking for a way to simplify your shipping, product fulfillment, and product rework strategies, it is a great idea to plan out an omnichannel strategy with an outsourced third-party logistics company. Lean Supply Solutions rises to the challenge of meeting our clients’ needs through our services. These include product fulfillment, warehousing and distribution, e-commerce fulfillment, warehouse pick and pack, and order fulfillment. Lean Supply Solutions is able to offer consistent, accurate, and quality results. To learn more about outsourcing to our 3PL distribution team, or to ask any questions, contact us at 905-482-2590.