SOP

What is an example of a multichannel strategy?

Hayim E Paices

10 Sep 2023 — 2 min read

A multichannel e-commerce strategy utilizes different retail channels to sell merchandise. The Multichannel planning consists of selling on the following channels direct to consumers, selling on marketplaces, selling to retailers through a dropship model, and selling to retailers that will sell your product in brick-and-mortar stores and online. The four channels help you to diversify and add incremental orders that benefit the bottom line and your supply chain.

In recent years I have seen retailers selling on social media, adding another unique channel to the mix. Remember that this only works if you have a mid-size product assortment and offer a quality branded product.

DTC Channel, Direct to Consumer

Direct-to-consumer (DTC) selling is a model where brands sell directly to their customers without the use of third-party retailers or wholesalers. This model has become increasingly popular in recent years as it gives brands more control over their products, pricing, and customer experience.

Shopify is a popular e-commerce platform that makes it easy for businesses to set up and manage their DTC stores. With Shopify, brands can create a custom online store, manage inventory, process payments, and ship orders. Shopify also offers a variety of marketing and advertising tools to help brands reach new customers. You can do all the processes I mentioned above on the following platforms too:

Shopify
Magento
Bicommerce
Woocommerce through WordPress
Open Cart
Wix

Marketplaces Channel

Selling on the marketplace is a great way to reach a wider audience and sell your products. It's also a relatively easy way to get started, and there are no huge upfront costs.

Amazon Marketplace
Walmart Marketplace
eBay Marketplaces
Target+ Marketplace
Marketplaces

One of the difficulties is the labor needed to submit Excel flat files and troubleshoot listings. The second difficulty is the creative assets needed to create perceived value, as some categories are very competitive. However, there are omnichannel softwares that makes the process easier. You can also go the agency route. In some cases, it's more affordable than hiring someone in-house.

(B2B) Dropship Channel

Dropshipping is a business model where a retailer does not keep the products it sells in stock. Instead, when a retailer sells a product, it purchases the item from a third party (You, the brand) and has it shipped directly to the customer. This eliminates the need for the retailer to carry inventory, which can save money on storage and handling costs.

Nordstrom Rack
Macy's
Walmart DSV
Costco.com
Touchofmodern.com

There are some benefits, but keep in mind you are fulfilling the orders and getting paid most of the time, Net 60.

B2B Online Retailers

Selling to B2B online retailers can be a great way to grow your business. You can increase your sales and profits by reaching a wider audience and selling in bulk. It would help if you watched out for allowances, loads, and marketing % and load this costs to your offering because these fees will be subtracted on the final PO.

During my tenure at Gibson Overseas Inc and as a consultant, I have clients that sell to Macy's B2B (EDI), Macy's online division, and past season products on Macy's marketplace. I like to call this the multichannel hybrid strategy.