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Bricks-and-mortar retailers are trying to compete with Amazon and each other by offering what they hope is the best of both worlds – online sales with the option of store pick-ups, delivery and returns.
When successful, this so-called omni-channel shopping – allowing customers the choice of buying in a physical store or online – can provide better service, more inventory and faster delivery options, e-commerce experts believe.
It is also one of the best ways that traditional retailers can hope to compete with Amazon, whose physical presence is limited to distribution centres.
“The promise is there, the potential is there, and when it works, it’s a lovely thing,” said Fiona Dias, referring to omni-channel shopping. Dias is chief strategy officer at ShopRunner, which provides e-commerce services to major US retailers.
But only a handful of retailers are doing it well, the experts said. For starters, it is expensive. Making the change typically requires costly software to combine online and in-store inventory. Stores also need to be reconfigured to give workers room to pack and prepare orders.
Staff has to be retrained so that they encourage sales both in-store and online, even if they lose a potential commission by selling online. And the sales strategy requires big changes in how an organisation works – merchandise buyers for e-commerce and stores have typically operated separately.
“It’s been very frustrating for us in the industry who know it can be done,” said Dias. She gives the retail sector a C- grade, saying too few chains have tapped the potential of omni-channel shopping even as big companies have made strides.
