CHAPTER - III

OMNICHANNEL E-TAILING - AN OVERVIEW

3.1 INTRODUCTION

Omni-channel E-tailing is a fully integrated approach to e-commerce that provides online

shopper a unified seamless experience across online channels (i.e. Smartphone, Computer, e-
store, online catalogue, Social Media, E-wallet, e-shipment

Figure: 1 Omni-channel E-tailing

Omni-channel e-tailing approach aims at promoting online seamless experience and also to
eliminate the offline experience. Due to the enhancement of technology innovation, customer
convenience and to save the environment, Omni-channel e-tailing approach has been
introduced.

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3.1.1 Omni-channel

Omni Omnis All or Universal

Omni-channel is a cross channel business and content strategy that companies use to improve
their users experience. Omni-
relationships with organizations.

3.1.2 Omni-channel retailing

Omni-channel is a fully integrated approach to commerce that provides shopper a unified

experience across online and offline channels. Omni-channel shopper is a method of contact
including smartphones, web pages, brick-and-mortar stores, pop-up shops, phone sales,
catalogues, and so on. These channels usually utilize disparate systems without built-in data
integration. The retailers must create a holistic view of the customer and make sure that
product and account data are the same on every channel3.

Figure 2: Omni-channel retailing

3.2 EVOLUTION OF OMNI-CHANNEL RETAILING

3.2.1 SINGLE-CHANNEL

Single-channel marketing strategies focus their business on a single means of reaching their
customers. Their choices of marketing channels might include a retail sales force, online

3
https://www.informatica.com/in/services-and-training/glossary-of-terms/omnichannel-retailing-
definition.html#fbid=hVbPvWQ9rVo

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commerce, or a business-to-business partnership. Each channel has its own benefits and
limitations. A multiple strategy takes advantage of more than one channel to optimize its
outreach to consumers.

Single-channel marketing can help minimize marketing expenses. It has been estimated that a
single-channel marketing strategy can cost as much as one-third less than multiple-channel
strategies and a single channel strategy is enough to dominate the market for their products or
services. The disadvantages such as the digital age, mobile devices, social media, and
emerging communication technologies bring additional marketing channels into play. These
new technologies also change the shopping, buying and peer-influence behaviors of their
customer. The profound focus of a single-channel strategy comes at the expense of missed
opportunities in the huge variety of other channels and a single-channel marketing strategy
will only let their business grow as far as their chosen marketing channel is capable of
reaching.

Figure 3: Evolution of Omni-channel retailing

3.2.2 MULTI-CHANNEL

The term Multi- Multus

Multi-channel retailing takes place when a company provides numerous ways for customers
to purchase goods and services. This marketing strategy could include selling through
traditional outlets such as Catalogue, brick-and-mortar stores, Mail and telephone. But, it also
includes non-traditional electronic and mobile outlets like websites, Figures, emails, apps,
and Social networks.

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Multichannel retailing is a way to build a brand and reach a lot of consumers. You want to

of multichannel retailing and look at Sears as an example.

3.2.3 Benefits of Multichannel retailing

Multichannel retailing is a marketing concept that is always evolving. The bottom line is that
most companies these days are expected to give customers a variety of ways to shop.
Customers want convenience and they want things to be done immediately4.

1. Flexibility for consumers when purchasing and paying for goods and services
2. More opportunities to build a brand among diverse audiences.
3. Additional chances to solicit and use consumer testimonials.
4. 24-hour access to customers to build brand loyalty
5. A greater degree of visibility among various demographics.
6. Improved analytics to help understand consumer behaviors.

3.2.4 CROSS-CHANNEL

The term - is derived from Latin

Cross-channel retailing is all about delivering a seamless customer experience across multiple
sales channels. It is the strategy of sharing and selling products across different channels to
the same customer. Cross-channel retailing solutions allow retailers to redefine the customer
experience, improve merchandising, overcome inventory challenges, capture lost
opportunities, take advantage of real-time demand information and achieve operational
efficiencies, never before possible5. Innovative cross-channel solutions include next-
generation e-commerce systems, which include:

1. In-store and online merchandising functionalities that capitalize on consumer demand

preferences;
2. The ability to order merchandise online and pick it up in-store or have it delivered
directly to the customer;
3. Purchasing and utilizing gift cards and loyalty programs across any channel and
4. Launching marketing campaigns and promotions, which can be used both online and
offline in the stores.
4
https://study.com/academy/lesson/multichannel-retailing-definition-benefits-challenges.html
5
https://www.ecommercetimes.com/story/62499.html

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The implementation of cross-channel retail solutions will allow retailers to consolidate their
multiple sales channels and inventories. Retailers will see numerous benefits such as:

1. Increased revenues by using multiple cross-channel capabilities to effectively capture

lost sales opportunities.
2. Cross-sell and up-sell opportunities during customer in-store pickup.
3. Improved overall customer satisfaction by offering more services in-store and online.
4. Better customer contact, communications and marketing through improved service
options, enhanced personalization and business intelligence.
5. Lower order and fulfilment costs by improving merchandising and inventory
management, streamlining fulfilment processes through distributed fulfilment
capabilities, implementing intelligent order routing and shipping cost optimization
and by lowering costly store-to-store transfers.
6. Extended capabilities of existing POS and WMS (Warehouse Management Systems).
7. Superior merchandising-decision-making by obtaining new demand and forecasting
information, never previously available.

3.2.5 OMNI-CHANNEL

-channel is a client interaction approach which

seamlessly integrates with and across different channels of exchange with clients and thus it
provides clients a unified interaction experience. It is a cross-channel business model that
companies used to improve their customer experience. The approach has applications in
healthcare, government, financial services, retail, and telecommunication industries and
includes channels such as physical locations, FAQ web pages, social media, live web chats,
mobile applications and telephone communication. Companies that use Omni-channel
contend that a customer values the ability to be in constant contact with a company through
multiple avenues at the same time.

This is a new system of retailing, connecting stores, e-commerce, mobile apps, and social
media referred to as Omni-channel retailing. By integrating and aligning channels, omni-
channel provides a flexible and seamless shopping experience to consumers, regardless of
whether the customer walks into a store, browse on a website or order via a mobile phone.
Omni-channel retailing creates opportunities for retailers, ranging from potential extension of
sales domestically or overseas, to capturing more lucrative sales or increasing brand
awareness and loyalty.

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3.2.6 OMNI-CHANNEL OPPORTUNITY

Omni-channel e-tailers are already developing a variety of strategies to reap these

opportunities created by Omni-channel e-tailing. These strategies blur the boundaries
between channels in online.

1. Placing technology e-store (e.g. through Wi-Fi kiosks, user and staff tablets, etc.), to
enable a shopper to browse the e- catalogue and alternative offers
conveniently, and place orders.
2. Shifting the role of the e-store to a website for certain products, combined with home-
delivery options.
3. Using the e-store as a collection point for online, mobile and online catalogue orders
(click & collect; drive through click & collect) to see products Omni-channel prior to
purchase.
4. Making the e-store an experience place to build loyalty (e.g. by allowing customers to
try new food recipes while their Omni-channel order is being prepared).
5. Being broadly present across own and third-party online sites (e.g. websites, online
market places, and social media), to maximise opportunities to showcase the brand

6. Offering flexible delivery options for items purchased through e-store channels,
including options to collect items from delivery points ( e.g. Delhivery, EKart, E-com
express, etc.), options to deliver within a short period of time or options to use text or
the web to book a convenient time slot for delivery.
7. Using location recognition with customers, who have enabled it, to inform of services
of potential interest to the customer, as the customer walks near or into a store.
8. Retaining Omni-channel purchase history across mobile, web, apps and loyalty cards,
for customers, who have signed up with this e-tailer functionality, to inform of
relevant services or avoid having repeat stages of the purchase journey.
9. Using owned and third-party online sites to sell internationally, combined with
different options for international delivery, via owned or third-party international
delivery networks, and leveraging alternative online payments, which facilitate
interoperability between payment systems.

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3.2.7 Pursuing a customer-centered Omni-channel strategy

1. behaviours in the
new environment, the different paths to purchase and enable their channels to operate
flexibly to allow customers to use the channels of their choice at any point of the
journey.
2. Retailers should seek to be present across a breadth of channels, from stores and
catalogues to websites, apps and social media, in order to maximise the chances that
consumers find them and engage them at any stage of the shopping journey.

Taking a holistic view

1. Retailers need to promote a culture across the organisation that embraces omni-
channel
2. Retailers should move towards a model that remunerates staff for sales that happen in
their catchment and attribute costs and revenues on this basis, rather than by channel.
3. Retailers need to be prepared to align their entire operations with omni-channel
retailing, from marketing and distribution to staffing and IT.

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