Online transactions make up 20% of retail sales. Even with the eCommerce boom though, physical store sales are still on the rise. This perfectly showcases how diverse shopping habits are. 

Some customers love the convenience of online shopping, while others enjoy the in-store experience. One thing is clear though: Customers expect seamless shopping no matter which portal they use. This demand pushes businesses to embrace multi-channel strategies to scale and stay competitive.

However, establishing various sales channels is only half the equation. Businesses need a solid multi-channel logistics strategy to thrive. So, we’ll explore multi-channel logistics and offer tried-and-tested tips for scaling your operations across platforms. 

What are multi-channel brands?

As the name suggests, multi-channel brands sell their products on several online and offline platforms. These can include:

• Physical stores
• Online marketplaces
• Mobile apps
• eCommerce websites

Maintaining a presence across multiple channels reaches diverse customer segments and creates a seamless and flexible shopping experience.

What are multi-channel logistics?

Multi-channel logistics entail managing the flow of products on different sales channels. When you sell on multiple platforms, each one has its own set of rules and requirements. Keeping everything running smoothly as your business grows can feel like a lot to handle, but with a well-planned multi-channel logistics strategy in place, it’s much more manageable. Further, solidifying your logistics  also makes your customers happier.

To give you a better idea of how it all works, here are some of the benefits of multi-channel logistics.

Wider consumer reach

Shopping habits can be tricky to pin down, as they’re not always clear cut. A 2022 YouGov survey highlights this fluidity, showing many consumers still prefer to shop in physical stores for particular items: 60% prefer buying groceries in-store, while 52% purchase clothes and vehicles from brick-and-mortar shops. Clearly, the ability to touch, feel, and try things in person still holds significant appeal.

That said, many people would rather shop online, and the number of eCommerce consumers is expected to surpass 333 million by 2029. That doesn’t even account for those who prefer social commerce either. 

Multi-channel logistics allows you to accommodate these shopping preferences and deliver across various channels.

Increased sales opportunities

The more channels you sell on, the more opportunities for shoppers to buy. But that also brings the need for a solid fulfillment strategy. 

Multi-channel logistics ensure you have the right stock in the right place at the right time. That way, you can make the most of those potential sales opportunities without headache. Staying organized and efficient is key to running your business smoothly across platforms.

Improved customer service

Buyers expect speed and convenience in every aspect of their shopping experience. With an efficient multi-channel logistics strategy, you can fulfill orders faster and offer flexible options like direct shipping, in-store pick-up, or even same-day delivery. 

These choices boost your sales opportunities and elevate your customer service experience. That’s reflected in 88% of consumers who say a positive experience with customer support makes them more likely to make another purchase.

Scalability and flexibility

Multi-channel logistics give you the flexibility your business needs to sell on various channels. You secure the most efficient delivery options, no matter where your customers shop. 

Further, this strategy lets you adapt to changing demands, especially during peak seasons when your logistical efforts are under pressure. Its agility helps you stay on top of things and keep your operations running smoothly.

Competitive advantage

A solid logistics strategy plays a huge role in delivering a great customer experience, which is a major differentiating factor. To stand out and gain a competitive edge, businesses use multi-channel logistics to provide a consistent and seamless shopping experience from start to finish.

Common multi-channel logistics methods

Businesses use different logistical processes based on their needs, sales channels, and customer expectations. However, a few are more frequently employed than others. 

Centralized inventory management

Centralized inventory management keeps all your inventory data in one system. Whether sales occur online or in stores, the system tracks your stock and ensures you can monitor its movement in real time. 

This method provides the visibility you need to direct customers to where stock is available, offering convenience for both you and your buyers. With centralized inventory, businesses can minimize the risks of overstocking and understocking so it’s easier to stay on top of stock levels and meet customer demand.

Omnichannel fulfillment

People like choice, which is apparent given 56% of consumers like to shop both online and in stores. On top of that, customers who shop with retailers that seamlessly connect their various channels are far less likely to look elsewhere for deals or options. 

Omnichannel fulfillment capitalizes on that psychology; it gives customers flexibility and convenience by linking all sales channels in a single, cohesive ecosystem. For instance, someone might place an order online and pick it up in-store or return an online purchase to a physical location. This approach enhances the buyer’s experience and establishes the brand as a convenience-first retailer.

Third-party logistics

Managing logistics in-house becomes increasingly expensive and time-consuming as your business grows. That’s why many businesses turn to third-party logistics providers (3PLs) to oversee operations like warehousing, shipping, and even returns.

With an efficient 3PL, experts manage your inventory, pick and pack orders, and ship them directly to your customers. This reduces costs, saves time, and removes the complexities of managing logistics from your shoulders.

Dropshipping

Dropshipping takes inventory management off your plate by having suppliers ship products directly to your customers. When a shopper places an order, you simply forward it to the supplier, who then carries out the fulfillment. This method is excellent for businesses that want to:

• Minimize up-front costs
• Avoid storage requirements
• Test new products

At the same time, you still maintain control over sales and customer communication.

Cross-docking

Cross-docking helps speed up deliveries: Goods are unloaded from incoming trucks at a facility, then immediately loaded onto outgoing trucks. Little to no time is spent storing items, so products move faster from one place to another.

It also lowers storage costs and keeps inventory moving efficiently, making this approach ideal for fast-moving goods.

Multi-channel returns management

Returns and exchanges can incur huge costs for businesses. Just ask retail—returns in that industry hit $890 billion in 2024. 

Managing reverse logistics is challenging in its own right, but when you have to oversee multiple channels, it can feel overwhelming. That’s where multi-channel returns management comes to the rescue. This approach lets your customers return items using the easiest channel, whether it’s in-store, online, or via a third-party service. By simplifying the process, you take the hassle out of returns so your customers enjoy a much better experience.

Warehouse management systems 

A warehouse management system (WMS) monitors everything in your warehouse to keep it organized and running smoothly. It informs you of what’s coming in, where it’s stored, and what’s going out. This solution can also help you track inventory so you know when it’s time to restock.

Best practices for multi-channel logistics

To ensure your multi-channel logistics system functions without interruption, meets your business needs, and consistently delivers a top-notch customer experience, we’ve outlined some steps to strengthen and optimize it.

Integrate technology

By incorporating the following technology into your logistics strategy, you can unify all your data, platforms, and tools:

• WMS: Manages inventory, monitors stock in real time, and optimizes warehouse processes
• Order management systems (OMS): Oversees orders from all your sales channels
• Inventory management software: Tracks and manages stock levels across all channels
• Shipping software: Integrates with your logistics partners to streamline shipping processes, provide live tracking, and help optimize delivery routes and costs
• Customer relationship management (CRM): Helps understand buyer behaviors, personalize communications, and improve customer service
• Point-of-sale (POS) systems: An in-store sales system that captures and organizes transactions, inventory, and customer data
• Business intelligence (BI) tool: Uncovers valuable insights into sales, inventory, and logistical performance
• API integrations: Tools that allow different systems to communicate with each other

Use data analytics

Data analytics help businesses understand what’s happening on all the channels where they sell. They reveal important patterns and trends so companies can make informed decisions to improve their operations. With robust data analytics, brands gain insights into:

• Consumer behavior patterns
• Inventory optimization
• Sales performance by channel
• Order fulfillment efficiency
• Customer satisfaction and feedback
• Supply chain bottlenecks
• Demand forecasting
• Cost management

Develop a flexible supply chain

A flexible supply chain allows businesses with multi-channel logistics to adapt quickly to changes in demand, market conditions, and fluctuating customer preferences. To achieve that though, you must:

• Diversify your suppliers and partners to reduce risk and be able to switch providers when necessary.
• Maintain multiple fulfillment centers to pack and ship orders from the closest location, reduce costs, and respond faster to regional demand spikes.
• Leverage historical sales data to predict future demand.
• Establish real-time inventory management systems for live inventory tracking.
• Offer various shipping methods to give customers more options.
• Evaluate your performance and make adjustments as needed.

Build strong partnerships

A solid understanding between you and your logistics provider is crucial. So, take time to assess whether a potential partner has the expertise and resources to support your business as it grows. Once you find one, establishing a healthy relationship with them will make all the difference. Good relations drive better services and secure a more competitive edge in the market.

Wrapping up — Optimize your logistics strategy for multi-channel success 

Exploring multiple channels is a great step for your business. But before you commit, you need to be ready to take on the logistical responsibilities that come with it. While functioning as a multi-channel brand has attractive benefits, it also comes with noteworthy challenges. However, with a strong grasp on multi-channel logistics, you can take full advantage of this selling method to enhance your customer experience and keep buyers coming back.

At MyFBAPrep, we specialize in multi-channel logistics strategies and can tailor them to your needs. Our team of experts has worked with various businesses across industries to create the most efficient fulfillment solutions.

Ready to make multi-channel logistics work for you? Connect with our team today and get started.