Omnichannel vs Multichannel eCommerce: Which One is Better?

In the simplest sense, “multi” means “many” and “omni” means “all”. To that end, multichannel eCommerce involves selling products and services through many channels. On the other hand, omnichannel eCommerce involves selling through all available channels.

So how does omnichannel vs multichannel eCommerce pan out? And which one is considered more beneficial by the eCommerce development services? We’ll find out through this blog. Let’s begin by explaining what these two channels of eCommerce are.

What is Omnichannel eCommerce?

Omnichannel eCommerce is the strategy of creating the most unified and seamless shopping experience for customers on all possible channels. That involves creating an eCommerce website as well as a mobile application, along with social commerce, a physical store, and more.

The aim is to ensure a consistent shopping experience for the customers no matter where they shop for your products.

Key Features of Omnichannel eCommerce

• Consistent Brand Experience: Omnichannel ensures a consistent brand voice, message, and visual identity across all channels, whether online or offline. This builds brand recognition and trust with customers.
• Unified Customer Data: Customer data from various touchpoints (site visits, app interactions, in-store purchases, etc.) is collected into a single platform. That ensures a more comprehensive understanding of customer behavior and preferences.
• Seamless Customer Journey: Omnichannel eCommerce removes friction from the shopping experience. Features like “buy online, pick up in-store” (BOPIS), synchronized shopping carts across devices, etc. facilitate a smooth flow for the customer.
• Cross-channel Marketing: eCommerce marketing strategies are coordinated across all channels. Customers might see a social media ad for a product and receive an email with a personalized discount code. Then they can complete the purchase seamlessly on their mobile app.
• Personalized Shopping: Omnichannel approach leverages customer data, om to implement personalization in terms of product recommendations, promotions, and content. That means better customer engagement and loyalty.
• Real-time Inventory Visibility: Inventory management is done in real-time across all channels. So customers have accurate information about product availability. And there is no frustration of finding out an item is out of stock after attempting to purchase.
• Omnichannel Customer Service: Customers can receive consistent and helpful customer service support regardless of their preferred channel (phone, email, social media).

Combined, these features can ensure a more convenient and satisfying experience for your customers. And it will help convert more visitors into paying, loyal customers. That’s why the eCommerce experts value the omnichannel experience for any business.

How Does Omnichannel eCommerce Work?

As specified earlier, omnichannel eCommerce strategy is all about creating a unified shopping experience for the customers. That is, irrespective of their preferred channel. Here’s how the customer proceeds through omnichannel eCommerce:

(1) Discovery: A customer discovers a product on social media (Instagram, Pinterest) through an ad or influencer post. They click on the product image, which redirects them to the retailer’s website or mobile app.

(2) Research: The customer explores the product on the website, reads reviews, and compares it with similar products. They might use the retailer’s mobile app to check product availability in nearby stores.

(3) Purchase: The customer decides to purchase the product. They have several options:

• Buy online and pick up in-store (BOPIS)
• Buy online and get it delivered
• Buy in-store and use the retailer’s app for loyalty points or discounts
• Buy through the retailer’s mobile app

Regardless of the chosen method, the customer’s cart and purchase history are synced across all channels.

(4) Post-Purchase: The customer receives order confirmation and shipping updates via email or SMS. They can track their order on the website or mobile app. If there’s an issue, they can contact customer support through any channel (phone, email, live chat, social media).

The customer receives post-purchase emails with product recommendations, surveys, or loyalty program updates.

This level of flexibility and customer experience is why most eCommerce development experts recommend this strategy to business enterprises.

What is Multichannel eCommerce?

Multichannel eCommerce is a strategy of selling your products through multiple online channels. These involve the likes of an eCommerce website, mobile app, online marketplace, social media, etc. But unlike omnichannel strategy, which ensures a more unified experience, multichannel eCommerce is more siloed.

Although the multichannel approach involves multiple channels (like omnichannel), these channels are not necessarily connected or interdependent. So there is no unified experience for the customers.

Key Features of Multichannel eCommerce

• Multiple Sales Channels: The core of multichannel is selling products through various online platforms. That includes a website, online marketplaces (Amazon, eBay, Etsy), social media platforms with shopping features, etc.
• Independent Channel Management: Each channel often functions somewhat independently. Inventory management, promotions, and customer data might be siloed and require separate logins or platforms for updates.
• Focus on Visibility: The main objective is to increase brand awareness and reach a wider audience. By being present on numerous platforms where potential customers browse, you cast a wider net to capture more sales.
• Streamlined Listing Management: Many multichannel platforms offer tools to simplify listing product information, descriptions, and images across various channels. This can save time and effort compared to manually uploading everything on each platform.
• Centralized Order Processing (Optional): While not always the case, some multichannel platforms allow for centralized order processing. This means you can manage and fulfill orders from different channels in one location, improving efficiency.
• Limited Customer Journey Integration: Unlike omnichannel, there’s minimal focus on creating a unified shopping experience across channels. A customer’s shopping cart on your website might not automatically carry over to the mobile app, for instance.

With multichannel eCommerce, you get the tools to expand your online reach and sell on multiple platforms. But there’s no real priority on creating a seamless, unified experience for the customer across those channels.

You can opt for either omnichannel or multichannel eCommerce for diversifying your business. But it’s important to understand how they compare against each other. That way, you can better decide which would be better for you.

How Does Multichannel eCommerce Work?

Multichannel eCommerce focuses on reaching customers across multiple platforms. But unlike omnichannel, there’s no priority on unified experience. Here’s how a typical customer journey goes:

(1) Discovery: A customer discovers a product on a social media platform (Instagram, TikTok, etc.) through an ad or influencer recommendation. Intrigued, they decide to learn more about the product.

(2) Research: The customer searches for the product on a search engine (Google) and visits the retailer’s website. They might also check product reviews on platforms like Amazon or other online marketplaces.

(3) Purchase: Based on their research, the customer decides to purchase the product. They might choose to buy directly from the retailer’s website, or they might opt for a marketplace like Amazon for convenience or price comparison.

(4) Post-purchase: The customer receives order confirmation and shipping updates from the chosen channel. If there’s an issue, they contact customer support through the platform where they made the purchase.

In essence, although there are multiple channels, each of them operates separately, with its own inventory, pricing, and customer management.

Omnichannel vs Multichannel eCommerce

Factors	Omnichannel eCommerce	Multichannel eCommerce
Focus	Creating a seamless customer journey.	Increasing brand awareness and reach.
Channel Integration	Channels are interconnected and data is shared.	Channels operate somewhat independently.
Customer Experience	Unified and consistent across all channels.	May vary slightly between channels.
Inventory Management	Real-time inventory visibility across all channels.	Inventory might need to be managed separately for each channel.
Marketing	Cross-channel marketing campaigns for a cohesive message.	Marketing efforts might be siloed for each channel.
Customer Data	Unified customer data platform for a complete customer view.	Customer data might be siloed for each channel.
Brand Experience	Consistent brand experience throughout the customer journey	Varied brand experiences depending on the channel
Sales Process	Cohesive sales process that transitions smoothly between channels	Independent sales processes within each channel

Although omnichannel and multichannel eCommerce approaches may seem similar, the key difference comes with the integrations, experience, and consistency. If you need help choosing between these two strategies for your business, opt for our eCommerce consulting services. We will analyze your requirements and decide on the best strategy.

When to Choose Omnichannel & Multichannel eCommerce?

The fundamental difference between omnichannel and multichannel eCommerce is the user experience. While both these channels involve using multiple channel, they are quite distinct. Omnichannel eCommerce creates seamless and unified experience for the customers across the channels. But multichannel strategy operates each channel independently.

If you find this distinction confusing, it’s understandable. Let’s make a little clearer.

When to Choose Omnichannel eCommerce?

Here’s when someone should choose the omnichannel eCommerce strategy:

• Limited budget: Multichannel is often less expensive to implement as it doesn’t require complex integrations.
• Early-stage business: Building brand awareness and testing different channels can be effective with a multichannel approach.  
• Simple products or impulse purchases: Customers might not need a complex shopping journey for these types of products.
• Diverse customer segments: Targeting different customer groups with specific channel preferences can be efficient.

When to Choose Multichannel eCommerce?

Here’s when someone should choose the multichannel eCommerce strategy:

• Strong focus on customer experience: If providing a unified and seamless shopping journey is a priority.
• Complex products or high-involvement purchases: Customers often require more information and touchpoints before making a decision.
• Loyalty program: Omnichannel strategy helps build customer loyalty by recognizing them across channels.
• Sufficient budget and resources: Implementing omnichannel requires investment in technology and skilled personnel.

Simply put, multichannel strategy focuses on expanding reach, but omnichannel eCommerce prioritizes customer experience. Most growing businesses eventually transition from multichannel to omnichannel as they evolve through the industry.

If you need a better idea on which strategy would work on your business, hire our eCommerce professionals. We will implement the suitable approach according to your requirements.

Omnichannel vs Multichannel eCommerce: Best Examples

As you know, there’s a fine line between these two strategies. So to explain them a little better, I’ll give you two excellent examples of omnichannel and multichannel eCommerce.

Amazon (for Omnichannel)

Amazon is a prime example of an omnichannel retail giant. They’ve seamlessly blended online and offline experiences to create a unified customer journey.

• Online Store: Amazon’s core business offers a vast product selection, personalized recommendations, and convenient delivery options.
• Physical Stores: Amazon Go, Whole Foods, and Amazon Books offer unique shopping experiences, often integrated with the online platform.
• Delivery Services: Amazon’s logistics network, including lockers, Prime delivery, and Amazon Fresh, ensures a smooth post-purchase experience.
• Digital Assistants: Alexa enables voice shopping and integrates with other Amazon services.

Amazon’s strength lies in connecting these channels. Customers can start a purchase online, pick it up in-store, or return it through any channel.

Apple (for Multichannel)

Apple is a classic example of a multichannel eCommerce strategy. They excel at creating distinct experiences across different channels.

• Retail Stores: Apple’s physical stores are renowned for their design, product demonstrations, and genius bar support.
• Online Store: Their website offers a sleek, user-friendly interface, exclusive products, and online support.  
• Carrier Stores: Partnerships with carriers allow Apple to reach customers through a vast network of physical stores.

While Apple offers multiple channels, the experience is not fully integrated. For instance, a product purchased online might not be eligible for in-store returns or repairs without hassle.

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FAQs on Omnichannel vs Multichannel eCommerce

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Omnichannel vs Multichannel eCommerce: Which is Better?

Multichannel simply involves selling on multiple platforms. But omnichannel goes a step further by creating a unified and seamless customer experience across all those platforms. That means better customer satisfaction, higher customer loyalty, and improved brand reputation. All this translates into higher sales and revenue.

But you need to understand that omnichannel strategy requires significantly higher investment in technology and resources. Plus, if your aim is just to bring more eyes to the brand, products, and services, multichannel would be a good start. If you need help with deciding on and implementing the best strategy for your business, connect with our experts today!