Wikipedia

Draft:Multichannel Selling

Multichannel selling is a retail approach in which businesses use more than one sales channel to offer products or services to customers. These channels may include physical locations, such as brick-and-mortar stores or temporary spaces like farmers' markets, as well as digital platforms, including e-commerce websites and online marketplaces such as Etsy, eBay, or Amazon.[1]

History

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According to Tamilia's research[2] on the history of distribution channels, the development of multichannel selling reflects a long process of adaptation to economic growth, technological change, and shifting market needs.

In the mid-1800s, the United States began to develop a national market. This was made possible by new technologies like the telegraph, railroads, and improved shipping.[3] At the same time, factories used mass production methods, which increased the distance between where goods were made and where people bought them. This gap created a need for middlemen (wholesalers), merchants, and agents—who handled tasks such as financing, storage, advertising, and managing risk.[4]

After the Civil War, large manufacturers became more powerful as they expanded production and built strong brands.[5]

New retail options like department stores and mail-order catalogs, such as those by Sears, helped businesses reach more customers.[6] This combination of direct and mediated selling can be seen as an early form of multichannel retailing.

By the 1960s, improvements in logistics, warehousing, and inventory control transformed how goods were moved. Distribution was no longer viewed only as a cost but became a key part of business strategy.[7] During this time, the idea of vertical marketing systems (VMS)[8] emerged. These systems involved close cooperation between manufacturers, wholesalers, and retailers, through corporate ownership, contracts, or management agreements, to reduce costs and improve coordination.[9][10]

The launch of online marketplaces like Amazon (1994) and eBay (1995) enabled sellers to offer products on digital platforms, creating opportunities to sell simultaneously via e-commerce and physical retail.[11][12]

By the early 2000s, the "clicks-and-mortar" model gained popularity as businesses integrated their online stores with brick-and-mortar operations to increase flexibility and reach.[13]

From the late 20th century onward, new technologies such as barcode scanning, computer-based inventory management, and the Internet reshaped distribution.[14][15] Online platforms like Amazon function as large-scale wholesalers and retailers, connecting many suppliers with consumers worldwide.[16]

Key Channels Used in Multichannel Selling

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Websites

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A company's own branded website is a central component of many multichannel strategies. These sites provide full control over product presentation, pricing, and customer data.[17][18] Platforms such as Shopify, WooCommerce, Magento, and BigCommerce are commonly used to build and manage direct-to-consumer (DTC) online stores.[19]

Marketplaces
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Marketplaces like Amazon, eBay, Walmart Marketplace, Etsy, and Alibaba provide instant access to large audiences.[20] These third-party platforms offer high visibility but typically control the shopping experience and customer relationship.[21]

Social Media

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Social commerce has become an important part of multichannel selling.[22] Platforms such as Facebook Shops, Instagram Shopping, TikTok Shop, and Pinterest allow customers to discover and purchase products directly through social media.[23] These platforms often integrate with e-commerce tools, helping businesses manage products and orders across channels.[24]

Mobile Apps

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Mobile apps allow brands to deliver personalized shopping experiences, push notifications, and app-exclusive promotions. Mobile-first retail strategies are especially effective in regions where smartphone usage is most common.[25][26]

Brick-and-Mortar Stores

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Physical retail locations remain a significant channel in multichannel selling. They serve not only as sales points but also as venues for returns, exchanges, and in-person customer service.[27] Many retailers now offer BOPIS (buy online, pick up in store) and in-store returns for online purchases.[28]

Telephone and Catalog Sales

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Traditional channels like telephone ordering and printed catalogs are still used in specific industries and demographics.[29] While no longer common, they remain relevant in B2B sales and older consumer markets.[30]

Technology and Tools

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Multichannel management platforms serve as central hubs that connect a business's product catalog with multiple sales channels. These tools enable users to list products on marketplaces, update inventory in real time, and process orders from different sources in one unified system.[31] Examples of popular multichannel tools[32] include: LitCommerce, ChannelAdvisor, Sellbrite, Linnworks.

Many multichannel systems integrate with third-party logistics (3PL) providers, warehouse management systems (WMS), and fulfillment services like Fulfillment by Amazon (FBA) or Shopify Fulfillment Network.[33] This helps automate stock updates and streamline shipping.

Retailers with brick-and-mortar locations may use cloud-based POS systems that sync with online inventory and transaction records.[34][35] This ensures that inventory sold in-store is reflected across all sales channels.

Multichannel strategies allow businesses to promote and sell their products across a combination of platforms, including websites, marketplaces, and social media to help sellers increase product visibility and customer engagement.[36]

Case Study Between Multichannel & Omnichannel Strategy

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A study by Silva, Duarte, and Sundetova (2020)[37] explores how fashion and apparel brands employ multichannel and omnichannel strategies to increase customer touchpoints across different price segments. Using a multiple case study approach, the researchers analyzed nine well-known brands by examining their online and mobile presence, company reports, and industry publications.

The findings show that, regardless of price segment, these brands behave similarly, with only minor differences in the number of channels and features offered to customers. Most brands demonstrate strong channel integration, effective order tracking, active online communication, and consistent use of social media.

This research contributes to the literature by providing a price-segmented comparison of channel use and integration in the fashion industry. It offers valuable insights for future comparative studies and assists new brands in identifying points of parity and differentiation in developing their channel strategies.

The move toward omnichannel strategies reflects significant changes in consumer behavior and expectations, as customers increasingly seek consistent experiences across all channels and devices.[38] In response, retailers and service providers have implemented centralized systems that integrate customer data, inventory, communication, and engagement efforts in real time.[39]

See also

References

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  4. ^ Eriksson, David; Hilletofth, Per; Hilmola, Olli-Pekka (2013-08-23). "Creating value through wholesaler and retailer interface". Industrial Management & Data Systems. 113 (8): 1169–1188. doi:10.1108/IMDS-02-2013-0078. ISSN 0263-5577.
  5. ^ Choshin, M; Ghaffari, A (2017). "An investigation of the impact of effective factors on the success of e-commerce in small- and medium-sized companies". Computers in Human Behavior. 66: 67–74. doi:10.1016/j.chb.2016.09.026.
  6. ^ "A Brief History of Newtown - Part 2". www.newtown.org.uk. Archived from the original on 2016-03-05. Retrieved 2025-07-28.
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  8. ^ "What is a Vertical Marketing System? (3 Types and Examples)".
  9. ^ Dunković, Dario (2009). Model of vertical marketing system in retail distribution. pp. 627–637.
  10. ^ Wuyts, Stefan; Stremersch, Stefan; Van Den Bulte, Christophe; Franses, Philip Hans (2004-11-01). "Vertical Marketing Systems for Complex Products: A Triadic Perspective". Journal of Marketing Research. 41 (4): 479–487. doi:10.1509/jmkr.41.4.479.47015. ISSN 0022-2437.
  11. ^ Kotha, Suresh Sandip (2011-02-24). Amazon and eBay: Online Retailers as Market Makers. Oxford University Press. pp. 155–178. ISBN 9780199590179.{{cite book}}: CS1 maint: date and year (link)
  12. ^ Hamilton, Gary G.; Senauer, Benjamin; Petrovic, Misha (2011-02-24). The Market Makers: How Retailers are Reshaping the Global Economy. Oxford University Press. ISBN 978-0-19-959017-9.
  13. ^ Steinfield, Charles; Adelaar, Thomas (2002). "Integrating Brick and Mortar Locations with E-commerce: Understanding Synergy Opportunities". Proceedings of the 35th Annual Hawaii International Conference on System Sciences. Hawaii: IEEE. pp. 2920–2929. doi:10.1109/HICSS.2002.994254. ISBN 0-7695-1435-9.
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  15. ^ "History of Channels of Distribution and Their Evolution in Marketing Thought". scholar.google.com. Retrieved 2025-07-23.
  16. ^ Berg, Natalie; Knights, Miya (2021-11-03). Amazon: How the World's Most Relentless Retailer will Continue to Revolutionize Commerce. Kogan Page Publishers. ISBN 978-1-3986-0143-7.
  17. ^ Gillies, James; Cailliau, R. (2000). How the Web was Born: The Story of the World Wide Web. Oxford University Press. ISBN 978-0-19-286207-5.
  18. ^ "Your Guide to Multichannel Selling". Unleashed Software.
  19. ^ Lixandroiu, Radu; Maican, Catalin (2015). "An Analysis On Choosing A Proper Ecommerce Platform". Risk in Contemporary Economy. 2 (1): 54–59.
  20. ^ Kułach, karolina (2024-06-10). "Top 10 online marketplaces: leading ecommerce platforms". Webinterpret - Your partner for global ecommerce solutions. Retrieved 2025-07-23.
  21. ^ Shi, Dan; Wang, Meiqi; Li, Xiang (2021-12-01). "Strategic introduction of marketplace platform and its impacts on supply chain". International Journal of Production Economics. 242 108300. doi:10.1016/j.ijpe.2021.108300. ISSN 0925-5273.
  22. ^ Lai, Linda S. L. (2024-11-09). "Social Commerce – E-Commerce in Social Media Context". World Academy of Science, Engineering and Technology, International Journal of Social, Behavioral, Educational, Economic, Business and Industrial Engineering. doi:10.5281/ZENODO.1056500.
  23. ^ Hub, Influencer Marketing (2021-01-26). "16 Social Commerce Platform Examples That Prove Social Is Key". Influencer Marketing Hub. Retrieved 2025-07-23.
  24. ^ "Social commerce market: US brands' strategies for growth | McKinsey". www.mckinsey.com. Retrieved 2025-07-23.
  25. ^ Holzer, Adrian; Ondrus, Jan (2009). "Trends in Mobile Application Development". In Hesselman, Cristian; Giannelli, Carlo (eds.). Mobile Wireless Middleware, Operating Systems, and Applications - Workshops. Lecture Notes of the Institute for Computer Sciences, Social Informatics and Telecommunications Engineering. Vol. 12. Berlin, Heidelberg: Springer. pp. 55–64. doi:10.1007/978-3-642-03569-2_6. ISBN 978-3-642-03569-2.
  26. ^ "Innovative Approaches to Multi-Channel Sales". Deskera. 18 September 2023.
  27. ^ "Multichannel Retailing: Decide on Sales Channels for Your Business (2025) - Shopify". Shopify. Archived from the original on 2025-05-18. Retrieved 2025-07-23.
  28. ^ Kim, K; Han, S.L; Jang, Y.Y; Shin, Y.C (2020). "The Effects of the antecedents of "Buy-Online-Pick-up-in-Store" service on consumer's bopis choice behaviour". Sustainability. 12 (23): 9989. Bibcode:2020Sust...12.9989K. doi:10.3390/su12239989.
  29. ^ Albrecht, Dr Maria Gomez; Green, Dr Mark; Hoffman, Linda (2023-01-25). "16.1 Traditional Direct Marketing - Principles of Marketing | OpenStax". openstax.org. Retrieved 2025-07-23.
  30. ^ Lu, Steven Qiang; Singh, Sonika; de Roos, Nicolas (2023-09-01). "Effects of online and offline advertising and their synergy on direct telephone sales". Journal of Retailing. 99 (3): 337–352. doi:10.1016/j.jretai.2023.06.001. ISSN 0022-4359.
  31. ^ Siqin, Tana (2022). "Multi-channel management and platform operations in the digital era". Department of Industrial and Systems Engineering.
  32. ^ "Best 13 Free Multichannel Retail Software Picks in 2021 | G2".
  33. ^ "3PL: What is third party logistics and how does it work? - Sell on Amazon". Amazon Selling Partner Blog. 2024-03-18. Retrieved 2025-07-23.
  34. ^ Nizamani, Muhammad Arbab (2019-01-01). "Evaluating the Quality of Point of Sale (POS) Software". University of Sindh Journal of Information and Communication Technology. 3 (2): 69–75.
  35. ^ Hossain, S. (2016). Inventory & Point of Sale for Small Business. Stamford University Bangladesh.
  36. ^ Balaraman, Premkumar; Chandrasekar, Sabarinathan (2016). "E-Commerce trends and future analytics tools". Indian Journal of Science and Technology. 9 (32): 1–9. doi:10.17485/ijst/2016/v9i32/98653.
  37. ^ Silva, Susana C.; Duarte, Paulo; Sundetova, Anel (1 May 2020). "Multichannel versus omnichannel: a price-segmented comparison from the fashion industry". International Journal of Retail & Distribution Management. 48 (4): 417–430. doi:10.1108/IJRDM-07-2019-0232.
  38. ^ "The Future of Shopping". Harvard Business Review. 2011-12-01. ISSN 0017-8012. Retrieved 2025-07-29.
  39. ^ Verhoef, Peter C.; Kannan, P. K.; Inman, J. Jeffrey (2015-06-01). "From Multi-Channel Retailing to Omni-Channel Retailing: Introduction to the Special Issue on Multi-Channel Retailing". Journal of Retailing. 91 (2): 174–181. doi:10.1016/j.jretai.2015.02.005. ISSN 0022-4359.
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