The Benefits and Downsides of multichannel e-commerce in the USA – What are you missing out?

As is the case with every single e-commerce strategy out there, there will always be some pros and cons that you will have to consider before you take the plunge and implemented to your own business. One of the most popular things that has been going around for the last few years has been multichannel e-commerce so it is no surprise that a lot of business owners are tempted to give it a shot. And while there are a lot of great things about the strategy, there are also some definite downsides that you need to consider before you go ahead and start using it, and in today’s article we are going to talk about that. If you want to find out more about the pros and cons of this strategy and whether you should use it in the USA or not, just make sure to keep reading.

A lot of exposure

One of the best and most obvious benefits of using a strategy like this is the fact that you will get the kind of exposure that no other strategy can bring you. There is no amount of marketing that you can do that will get you the amount of customers that retail in multiple channels can bring you, and this isn’t just us saying it, they are actual statistics behind it. When you are selling on multiple channels you are getting the ability to target audiences that you could never reach before. A great example about this is using a marketplace like Amazon. Selling on your own e-commerce, while also getting to sell on Amazon is a great way for you to keep your current and loyal customers, while also targeting the specific audiences that you think would be interested in your product or service. The more channels you have, the more potential customers you have, and in the end of the day that all means potential bigger sales.

Better data collection

The words data collection and analysis may seem quite boring to someone that isn’t in the e-commerce world, but if you are a business owner that has an e-commerce then you know how important these elements can be to your business. Having the right data and the right analytical data can make the difference between a successful business and a failure. When your present on more than just one channel that means that you get to collect data from all of those channels and implement them to better your business as a whole. You will have a much better knowledge of your customer base, which is a very important step when you want to improve your sales and when you want to show your customers that you care about them. This will also allow you to interact with them in a more personal way on platforms like Instagram and Facebook, which can now be some of the channels that you sell on.

Lowered quality of customer service

One of the biggest issues of multi channel retail is the fact that this can mean a much lower quality of customer service from your business. A lot of business owners that we know pride themselves on really connecting with their customers and offering them the best customer service possible, however when you’re selling on multiple channels this quality can go down very quickly. Every different channel that you sell on will probably have their own rules and regulations, and at the end of the day each platform will only care about their reputation, so they really won’t worry about any of the businesses that are using their platform to sell on. Once you lose the trust of your customers it can be very difficult to get it back, so this is definitely something that you really need to think about before you dive into this strategy. Of course, it doesn’t mean that this will necessarily happen, but you need to be prepared for it in case it does.

Hard to control

Something that you probably already guessed will be pretty difficult when dealing with the strategy is the fact that controlling several different channels at the same time can be quite exhausting and quite the challenge, even for the most experienced of retailers. In fact this can be such a big challenge that a lot of business owners don’t actually ever manage to do it properly, and it can definitely destroy your business. You will have to know how to control the overall stock of your business that has been distributed within these different channels, while also making sure that the quality remains the same, you will have to know all of the rules and regulations of each channel that you’re selling on in order to not get your business into trouble, and on top of all of that you will have to remain in constant contact with all of your customers on all of the different channels that you’re using in order to keep expanding and growing your business.

Even when you see this written down it seems like a lot to handle, and that is because it definitely is. If this isn’t something that you’re prepared for, then you may want to reconsider getting your business in the USA involved with this strategy at all.

While multichannel ecommerce may seem like a good idea for some business owners, that does not mean that it will translate well into every kind of business. Before you decide to use the strategy we really recommend that you keep in mind what we said in the article above, examine both the pros and the cons and decide whether you were specific business will do well in an environment like that. The USA in particular is a huge market where any business can thrive with the right management and dedication, so if you feel like you’re getting enough as it is then definitely stay away from this type of retail. However, if you want to expand your business in a quick and efficient way, and if you’re ready to put in the necessary work, we definitely stand behind the strategy and hope that this article has helped you decide that you need to give it a shot.