Drawbacks of Multi Channel Retailing

Multi Channel Retailing
  1. Limited resources

Usually for small businesses multi channel retailing is seen as a disadvantage as they do not have the resources to keep everything steady at a higher level. An example of this is customer service which would include people working at all times to answer any kind of query that the customers may have.

The customer service representatives may have good experience in answering people’s queries in person but not through emails. Therefore these customer service representatives may need some kind of training to increase their communication skills. If this training is not given the customer support may not be well rated when emails are used to answer queries.

  1. Integration problems

Using the several channels properly and convincing the customers to buy the products more often will give an integrated experience. If this does not happen your customers will begin looking at different brands and products and your brand will suffer and your sales will begin to drop.

For example if you are selling a certain product online and you give people the option to pick up the product from the store to save on shipping cost, you will need to be equipped with a software that updates the store inventory as well as your online website. If this does not happen the customer will be unable to know if the product is available to be purchased and will go look at another website which will lead to a loss in potential customers.

  1. Considering internet sales secondary

A retailer may believe that the online store is the most important part of the business thus requiring the main focus. The retail will thus set up an online website to increase sales but does not spend time in properly developing the online website which would capture the attention of customer and increase their sales. Due to this the retailers suffer immensely as quite a few markets depend on the internet to carry out research before purchasing the product.

  1. Competition vs. Collaboration

Quite a few companies divide their entire staff in to two teams, one for the online purchasing and one for the physical store. Unfortunately this leads to the staff workers to compete with one another rather that working with each other to make the customers experience worthwhile. It is important to make sure that both teams work together in harmony as it signifies brand loyalty.
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