Understanding The Different Types Of Omni-Channel Distribution

Understanding The Different Types Of Omni-Channel Distribution

  • Best Inc. by Best Inc.
  • June 2, 2020

What exactly is an omnichannel distribution? Essentially it is a method of distribution that is popular with companies which allows customers to purchase and get orders. They can do this from numerous sales channels and with great ease because of advancements in technology. It would only serve to benefit a business when they consider their omnichannel distribution strategy from the perspective of a customer, speculating potential customer return. This is also known as forward and backward distribution services.

Omni-Channel-Distribution

Different Types of Omnichannel Logistics

  • Customers can choose to purchase items online and then pick them up at the physical store.
  • Customers can buy online and choose to have their items delivered to their doorstep or any other location.
  • Customers can make their purchases in the brick and mortar store, then choose to deliver to their home or any other location.
  • Customers can buy their products online and then return them either online or at the physical store.
  • Customers can buy things online and return the items online as well.
  • Customers can choose the drop ship method, where items are transported from a manufacturing center or a storage center, to the store, to their homes, or any other location.

What is the Main Goal?

The main goal of omni-channel distribution strategies by outsourcing firms is to help companies to reduce the amount of costs, while improving the transit process, and greater satisfying their customers. Using this form of distribution can help to increase revenue and profits because in this day and age customers are more willing to make orders online instead of at brick and mortar stores. Furthermore, there will be greater potential brand loyalty because of how seamless some of these interfaces are, increasing the chances of customers coming back.

What is the Difference Between Multi-Channel and Omni-channel distribution?

Unbeknownst to many people, multi-channel and omni-channel distribution strategies are different. Both forms of distribution revolve around providing customers with means to shop online and in brick and mortar stores. However, the omni-channel distribution strategy has a specialized ‘one-touch’ feature. This can allow customers to buy in the store, online, or both at the same time from one location.

Customers Will Spend More Time in Your Store

As mentioned several times throughout this article, omni-channel distribution is a great way to incentivize customers to choose your brand. Putting up your inventory on different sales channels can generate more customer traffic, which could in turn increase the number of in-store sales as well. When there are greater incentives to shop in your brick and mortar stores, on the internet, or both at the same time, you will be able to create much more omni-channel shoppers from your consumer base.

Take Urban Outfitters for example. They are an example of an extremely successful omni-channel distribution strategy. It has been shown that their omni-channel customers actually spend close to 3.5 times more money than the non omni-channel shoppers. Of course this goes without saying that the importance of the location of the brick and mortar stores cannot be overstated.