19 November, 2024

What is omnichannel fulfillment?

Have you ever been shopping online, noticed an ‘in-store near you!’ message on the product page, and opted for in-person pickup to get it faster? That’s a true omnichannel experience.

The omnichannel approach is increasingly popular due to the fact that customers expect flexibility and control over their shopping journey. They want to browse, buy, and return products seamlessly—whether they’re shopping online or in-store.

For retailers, meeting these expectations requires a dynamic approach to fulfillment—one that creates a cohesive experience no matter the channel. Enter omnichannel fulfillment: designed to satisfy customers wherever and however they choose to shop.

The retail world is abuzz with talk of creating a stellar ‘omnichannel’ experience. But what does omnichannel fulfillment really entail, and how can it elevate your business?

Omnichannel fulfillment: Defined

At its core, omnichannel fulfillment is the process of picking, packing, and delivering customer orders across multiple sales channels—physical stores, online platforms, marketplaces, and beyond—while providing a unified shopping experience.

But omnichannel fulfillment is more than just selling on multiple platforms. It’s about integrating these channels to ensure that every customer interaction feels cohesive.

Though many mistake multichannel and omnichannel fulfillment to be the same, they are two completely different approaches. In multichannel fulfillment, selling channels are siloed, with inventory allocated to each channel separately. Omnichannel fulfillment takes a different approach, where inventory and channels are integrated so orders can be fulfilled in the most cost-effective, streamlined way.

What does an omnichannel fulfillment strategy look like?

In addition to selling directly to the consumer via various sales channels from the warehouse, omnichannel fulfillment can also look like:

  • Buy online, pick up in-store (BOPIS)
  • Ship from store to customer
  • Ship from warehouse to store

You’ll notice that physical stores play a role in a well-rounded omnichannel fulfillment strategy. This is because it enables more flexibility and choice regarding how customers want their products delivered.

The returns process also has a part within omnichannel fulfillment, enabling multiple channels for returns such as:

  • Return to warehouse
  • Return in-store
  • Return to drop-off location

What are the benefits of omnichannel fulfillment?

Enhanced customer satisfaction. The modern customer expects speedy delivery, but omnichannel fulfillment goes a few steps further by giving them complete control of their fulfillment journey while creating a cohesive experience. When customers can choose how, when, and where they shop, they’re more likely to return.

Increased sales opportunities. Integrated channels drive more sales. For example, a customer browsing online might visit your store to pick up a product and end up purchasing additional items. A retailer selling both online, in-store, and on third-party sites will likely have more brand reach than retailers selling solely through one channel.

Improved inventory management. Omnichannel fulfillment requires a single source of truth when it comes to inventory management. By connecting all inventory points (stores, warehouses, suppliers), retailers can reduce overstock and stockouts, ensuring better product availability.

Maintain brand image and stand out from the crowd. The omnichannel experience is a faster, more personalized journey (when it’s done correctly!) Brands that maintain their branding no matter what channel they sell on foster loyalty and trust.

 

How to build a killer omnichannel fulfillment strategy

Create a consistent customer experience

Successful omnichannel fulfillment requires a reliable experience across multiple selling channels. Customers should feel the same level of service and brand identity whether they choose to shop online or do an in-store pickup. Ensure a strong omnichannel strategy by:

  • Developing unified branding, messaging, and visuals across channels.
  • Guaranteeing seamless shopping transitions that allow customers to start their journey on one channel and continue on another without interruption (i.e. browsing on Instagram and completing the purchase at an online store).
  • Leverage customer data for personalization. For example, use browsing or purchase history to recommend similar items via email, in-app, or online.

Establish flexible fulfillment options

Flexibility is the cornerstone of modern omnichannel fulfillment. Offer multiple options for your end-consumer to receive their products, including:

  • Buy Online, Pick Up In-Store (BOPIS): Customers can purchase online and pick up at a nearby store, reducing delivery time.
  • Curbside Pickup: Perfect for customers who want convenience without stepping inside.
  • Ship-from-Store: Use physical store locations as mini-fulfillment centers to shorten delivery times and reduce shipping costs.

Pro Tip: Communicate these options and expected delivery times to customers at checkout so they can make a well-informed decision.

Invest in a real-time inventory management system

Because omnichannel fulfillment uses a unified approach to inventory management, brands must have access to technology that enables visibility and accuracy across all channels. Look for inventory management software that seamlessly integrates with your ecommerce platforms and has functionalities like real-time inventory tracking, barcode scanning, lot tracking, serial tracking, and the ability to generate reports based on your business needs.

Enable flexible returns

In a perfect world, returns wouldn’t happen. But, the good news is they can boost brand loyalty when customers experience seamless reverse logistics. Shoppers are much more likely to shop again when they know returning an item is hassle-free. Offer omnichannel return options that create a hassle-free experience such as:

  • In-store returns: Allow customers to return online purchases at any physical location.
  • Return drop-off points: Partner with third-party locations (e.g., lockers or courier stores) for added convenience.

Partner with a 3PL for optimized fulfillment operations

When retailers outsource omnichannel fulfillment to an experienced third-party logistics (3PL) partner, they have direct access to proven specialized fulfillment processes, strong infrastructure, and advanced technology. The right 3PL will be able to:

  • Offer real-time inventory and order management.
  • Handle fluctuating demand across new sales channels.
  • Enable multinode fulfillment to get closer to customers.
  • Leverage established relationships with both carriers and big-box retailers.

How WSI enables streamlined omnichannel fulfillment

Proven omnichannel fulfillment model

With an experienced team and a world-class warehouse management system, WSI offers specialized fulfillment for B2B, D2C, and omnichannel retailers. We seamlessly integrate with major ecommerce platforms like Shopify, BigCommerce, Squarespace, Magento, and more. Plus, we have strong partnerships with retailers like Amazon, Walmart, Target, Wayfair, and Lowes—to name a few.

Nationwide fulfillment network

As one of the largest 3PLs in the US, WSI’s network boasts over 13+ million square feet of warehousing space. Leverage our nationwide, strategic locations and operational expertise to better manage inventory, lower shipping costs, efficiently route products, and meet unique retailer requirements. Learn more about our fulfillment centers here.

Advanced fulfillment technology

WSI’s omnichannel fulfillment solutions are backed by powerful technology that enables real-time order and inventory control and operational expertise that unlocks value-added services like custom packaging and kitting. Our warehouse management system enables you to always know where your orders stand with real-time, automated inventory reports, shipment history, and order status. Access on-demand data from one, user-friendly portal.

Simple, no-stress returns

Move returned products back to your facilities as fast and cost-effectively as possible with WSI’s carrier network and reverse logistics expertise. Whether you need pre-printed return labels, specific return instructions printed on packing slips, or unique requirements for quality check and restocking returned items, we’ve got you covered.

Ready to streamline your omnichannel fulfillment?

Omnichannel fulfillment isn’t just a buzzword—it’s a retail imperative. By investing in a strategy that integrates all sales channels, retailers can deliver exceptional customer experiences, drive loyalty, and stay ahead in a competitive market.

Looking to optimize your omnichannel fulfillment operations? Reach out to us today.