Multi-channel ecommerce means to sell your products on more than one ecommerce sales channel. Multiple channels have become important to create your brand’s presence online.

Online business requires a certain specific strategy towards product enhancement and customer reach. You cannot explore its benefits if you have not understood the importance of its merits and demerits.  Below is a brief discussion on advantages and disadvantages of using multichannel ecommerce:

  1. New customers: One of the obvious advantages of multichannel ecommerce is having new customers. If your product is available online as well as market places such as amazon. The customer can easily go and get the product either via online store or marketplace. Your product market will cater variety of customers and from different regions.
  2. New Revenue Streams: Through multichannel ecommerce, new revenue streamlines will open up. The more new customers get in, the more the revenue grows. The greater the customer’s presence to the market, the more profit it generates.
  3. Barriers: Low barriers for the business. This is the form of marketing and selling strategy which is beyond any boundary. A new entrepreneur will no longer require any physical presence of his/her business to any particular country. You can do business and sell your products and services just by sitting at your place and making it available to thousands of customers at their doorstep. Such business expansions do not cost much but involves a great deal of distribution strategy.

The demerits involve:

  1. Control on Inventory: The business expansion requires availability of product inventory. You cannot expand your business by making product available to multiple channels and not catering the product orders from customers. This will go against your commitment of shipment strategy. The more channel the selling of product involves, the more difficult to trace the misbalances in the inventory.
  2. Data Management: As you grow your business via using the concept of multichannel ecommerce, it will be difficult to manage the data which comes through it. The huge amount of data pours in and from different sources which can be difficult to manage and keep a track. It is better if you break down the data in pieces and then integrate on a dashboard. Through this, you will be able to get a big picture of your business and can easily track the growth in revenue.

In a nut shell, the gains from using multichannel ecommerce are far greater than its demerits. The demerits involve only management issues which can be resolved by proper planning and putting certain controls.

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