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What Is Omnichannel Fulfillment?

Posted by Julia Morrissey on Feb 23, 2024

In today’s digital age, it’s hard to imagine a retail brand succeeding without a progressive omnichannel fulfillment strategy. After all, consumers who don’t limit their shopping to a single channel generate the highest customer lifetime value (CLV). To bring about value though, you need to provide value.

Digital technology has changed customer expectations. Shoppers expect more touchpoints, personalized service, and super-fast delivery. Customers want to purchase products when, where, and how they want. This evolution in customer expectations is one of those crucial do-or-die situations for retail brands. Those who adapt to an empowered customer base will thrive, and those who don’t will die out.

To provide real value to shoppers, fashion brands need to lean into the changes and offer omnichannel fulfillment solutions.

Below, we cover what omnichannel fulfillment is and why it’s important today.

Table of contents:

What Is Omnichannel Fulfillment?

Omnichannel fulfillment is a retail strategy that integrates various sales and distribution channels to provide a seamless and unified shopping experience for customers. The customer can engage with a brand through multiple channels (such as online, in-store, mobile, and more) and have a consistent and cohesive experience across all of them.

With omnichannel fulfillment orders are facilitated according to the customer’s wishes. They can go to the store and shop, buy online and pick up in-store (BOPIS) or curbside, and more.

Omnichannel fulfillment also focuses on building strong customer relationships. This involves consistent branding, communication, and service quality across all touchpoints.

Why Omnichannel Fulfillment Is Important

When a shopper is looking for something to buy, they often start the process on their computer or mobile device. Even in the discovery phase, they’re considering how to get the product in their hands.

For shoppers, omnichannel fulfillment gives them freedom of choice. They can go to the store and shop the aisle the “old school” way, or they can buy online and pick up in-store, have it shipped to their home or business, or perhaps pay a premium and have it shipped same-day.

Brands need to unify their channels into one brand experience that seamlessly manages products and offers consumers options at the point-of-purchase.

Below is a complete look at the omnichannel fulfillment options customers expect today. 

Buy online pickup in-store (BOPIS) 

With BOPIS or “click-and-collect,” in-store staff receive a notice that an order has been placed for a pickup. They retrieve it, set it aside in the pickup area, and notify the system it’s ready. On the customer’s end, once the order has been fulfilled they receive an email or text with pick-up details. BOPIS also helps brick-and-mortar stores benefit from extra foot traffic and reduced shipping costs. 

Curbside pickup

Curbside pickup took off in retail in 2020 and looks to be a fulfillment choice that will continue to be a favorite. The customer buys online, receives a notification that the merchandise is ready, and shows up at the designated pick-up spot. They typically call or send a text when they’ve arrived so an associate can deliver the order right to them.

Some brands make a locker system part of their curbside service, where the customer scans a QR code and takes their purchase from an assigned locker. This allows for pickups after hours, which can add to customer convenience. 

Ship-to-store

Similar to BOPIS, the merchandise is ordered online and shipped from a warehouse to the store. The OMS and/or inventory management system notifies the store that their next shipment will include products X and Y that need to be ready for pickup by the customer. The customer is then notified that the order is ready, at which point the order is treated like any other BOPIS transaction. 

Buy online return in-store (BORIS)

BORIS makes customers return to the store time-and-time again, which is probably why we see 80% of brands supply in-store refunds for online products. It’s an important part of customer service – which is omnichannel’s most simple definition. Also, like with BOPIS, it boosts foot traffic and reduces shipping costs.

Ship-from-Store

Consumers don’t generally make the choice to ship-from-store, but it enables them to get their purchases faster. The customer buys a product online and wants it shipped to their home. The order management system sees the product is available at both a distribution center 50 miles away and a store five miles from the customer. Depending on inventory projections, it might direct the fulfillment order to the store. There, an employee picks and packs the order, readying it for delivery. This also opens up the possibility of same-day and 1-hour delivery options.

Endless aisle

Endless aisle provides 360-degree visibility into real-time inventory. With full visibility, brands can fulfill orders for out-of-stock or unavailable items for in-store customers by ordering items from other store locations or distribution centers. With endless aisle, you won’t have to tell a customer “no.”

Benefits of Omnichannel Fulfillment 

Omnichannel fulfillment offers a range of benefits, including improved customer experience, increased loyalty, operational efficiency, and adaptability to changing market dynamics. It’s a comprehensive strategy that aligns with the evolving expectations of modern consumers.

Enhanced customer experience

Omnichannel fulfillment provides a seamless and consistent experience for customers across various channels, improving customer satisfaction. Whether they shop online, in-store, or via a mobile app, customers can expect a unified and convenient experience.

Increased customer loyalty 

By offering flexibility in how customers can browse, order, and receive products, businesses can build stronger relationships and foster customer loyalty. Providing options like in-store pickup, fast shipping, and hassle-free returns can contribute to customer retention.

Optimized inventory management

Omnichannel strategies enable brands to synchronize and manage inventory more efficiently across different channels. This reduces the likelihood of stockouts or excess inventory, leading to better control over supply chain costs.

Greater sales opportunities

With multiple channels, businesses can tap into a broader customer base. Omnichannel retailing allows for increased visibility and accessibility, reaching customers who prefer various shopping methods.

Data-driven decision making

Integrating data from different channels provides valuable insights into customer behavior and preferences. Brands can use this information to make informed decisions, tailor marketing strategies, and optimize product offerings.

Improved operational efficiency

Centralized order management systems and integrated technology solutions streamline processes, reducing the complexity of managing orders and inventory. This efficiency can lead to cost savings and better resource allocation.

How to Implement Omnichannel Fulfillment 

At the core of omnichannel fulfillment is an effective order management system (OMS). It orchestrates order routing, directing the fastest, most cost-efficient path to move merchandise from a store, factory, or distribution center to the customer’s fulfillment preference. Ideally, it also paints a picture of an order’s lifecycle with a real-time status update that is visible on any device.

An omnichannel OMS also makes it easier to manage inventory. Rather than a giant central distribution center transporting products to stores in a region, stock is held in smaller warehouses and stores and shipped to homes nearby or picked up. This approach allows retail brands to nimbly adjust to sudden changes in demand, quickly shifting inventory between warehouses and stores to reduce out-of-stock problems and sell at full price.

For a seamless omnichannel fulfillment strategy, you’ll want to implement these components.

Multiple payment options 

Offering as many payment options as possible is the way to go for fickle customers. You give customers the freedom to buy how they want to. Remember, your customer holds the power, and they can shop elsewhere if your brand doesn’t align with their purchasing values.

Efficient pick, pack & ship

In-store employees in an omnichannel operation must know that they’re serving not only customers in-store but those online as well. Like warehouse staff, they need to know how to quickly fill a BOPIS or ship-from-store order. Making sure these tasks are prioritized as much as helping the in-store shopper will go a long way toward boosting customer satisfaction scores.

Easy pickup

Seven in ten consumers expect store associates to be able to provide curbside pickup, but they don’t like to wait. Having trained staff with easy-to-use solutions for pickups, plus clear signage directing customers to the pickup location, is the ideal. If that’s not feasible, this is where the convenience of pickup lockers can help.

Success With Omnichannel Fulfillment

Home Depot and Lowe’s have changed the fulfillment game in home improvement by unifying digital and physical. Customers have the ability to quickly find where a particular item is in a large store by checking the website, which also lets them know how many are in stock. They can pick up in-store as well as use pick-up lockers, curbside delivery, and home shipments — whichever is most convenient.

Thanks to advances in cloud technology, fast-growing retail brands have also been able to offer a range of fulfillment options. With NewStore, 15% of all Marine Layer ecommerce orders are shipped from a store to the customer instead of from a warehouse. This allows items to be shipped with a local touch and to reach customers more quickly. Additionally, 5% of the brand’s weekly store sales are now from endless aisle orders, which allows store associates to save the sale of items that are not available in-store.

Omnichannel Fulfillment For Your Brand

Expanding your fulfillment channels requires your organization to stretch and go beyond its boundaries. You need to push the envelope to get products to consumers quickly and economically. Doing so will increase customer loyalty and lifetime value.

NewStore is a modular platform that supports many brands with our store fulfillment solution. Reach out to learn how we can support your omnichannel fulfillment needs

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