What is Omnichannel Fulfillment? [Full Breakdown]

Wholesale, social media, physical outlets, e-commerce, and online marketplaces are just a few of the many ways to sell your products.

However, you will need to manage all these channels seamlessly to maximize profits. This is where omnichannel fulfillment software comes in.

The software boosts the customer experience by optimizing omnichannel fulfillment. With the right software and strategy in place, you can grow your sales with less hassle. This blog will cover the basics of omnichannel fulfillment and why it works so well. We will also highlight best practices to help you step up your omnichannel strategy.

Omnichannel Fulfillment Explained

Omnichannel fulfillment streamlines order fulfillment across all channels you deal with. With the right omnichannel strategy in place, you can orchestrate the ideal customer experience.

Your omnichannel strategy enables you to intelligently prioritize key tasks, such as receiving, picking, packing, and returns management. All digital and physical sales channels are integrated to operate flawlessly, such as social media, mobile apps, websites, physical stores, and so on.

The aim here is to efficiently manage all your sales channels in the best possible way so that customers can enjoy consistently high service quality across any sales channel they choose. This matters, especially when operating in competitive markets, like the USA.

One Salesforce study showed that 75 percent of customers desire a uniformly high experience across all brand channels. Hence, an omnichannel fulfillment strategy is a great way to ensure high customer satisfaction. This is in addition to providing them flexibility by offering multiple ways to purchase your products. Hence, your customers are free to select the channel that is most convenient for them. They can opt for in-person, online, or for a mix of both.

Multichannel vs Omnichannel Fulfillment

Multichannel vs omnichannel fulfillment: Both involve product sales across multiple channels. The key difference is how they integrate their sales channels.

The multichannel fulfillment approach relies on separating inventory control and order fulfillment for all its channels. In the omnichannel fulfillment approach, all the different channels share the same inventory control and order fulfillment.

Key Elements of the Omnichannel Fulfillment Strategy:

• Sellers use those systems and technologies that synchronize order processing and inventory data for all sales channels.
• As a result, customers can easily change sales channels without experiencing any kind of problem.
• Omnichannel prioritizes customer convenience and thus orchestrates a consistent brand experience across all channels.

Key Elements of the Multichannel Approach:

• Brand products and services are offered for sale on different channels that are not in sync with each other. That is, all channels operated independently without any exchange of inventory, orders, and customer data.
• Should the customer switch their sales channel, they might experience differences in service quality.
• This method aims to quickly sell across multiple channels without unifying the brand experience or service quality.

Hence, the main difference between these two approaches is that omnichannel methods prioritize customer experience, whereas multichannel means that the different sales channels are not integrated.

Omnichannel Order Fulfillment – How it Works

In the omnichannel order fulfillment approach, you have to integrate all your sales channels so they can provide a uniform brand experience and consistently high service quality. This leaves customers free to choose their channel. Sellers can easily manage all customer orders with order fulfillment software designed for their businesses.

You can thus gain the competitive edge to stay relevant in the USA and other lucrative markets.

Although the workflow for omnichannel order management can vary for different brands, it still shares certain common elements discussed below.

Multiple Sales Channels

Companies increasingly prefer to sell their products on multiple sales channels instead of just one. For example, a company may sell its goods at a brick-and-mortar store, on Google Shopping, and on Facebook Marketplace.

In the omnichannel method, data from all different channels is synchronized for a seamless brand experience and high-quality service.

Inventory Management

A robust inventory solution like WareGo can manage inventory across a multitude of sales channels. As a result, highly accurate, updated, and complete inventory information is available to both the business and its customers thanks to the software. All inventory, sales, and customer data are maintained in one centralized location. Stockouts and lost sales can be prevented this way, significantly improving customer satisfaction.

Order Processing

No matter what sales channels your customers use, the transaction data is immediately forwarded to your inventory solution via seamless integrations. Since all sales channels have their data information synchronized, there is almost no risk of data discrepancies that can lead to unexpected stockouts and lost sales.

Fulfillment Options

Order fulfillment is carried out using the same software. That is, the inventory solution takes care of all order processing and fulfillment. Quite often, order fulfillment for various channels can take place in the same warehouse. You can provide options for your customers to receive their items. It could be in-store pickup, home delivery, or any other shipping method. The software system is designed to streamline all these key elements of order fulfillment.

Just like purchases and shipping are streamlined, so too are item returns. A powerful software solution like WareGo automates returns processing minimizing productivity declines. Since returns are much more common in ecommerce and online selling, having this capability is essential to remain competitive.

Analytics, Reports, and Insights

A significant advantage of using enterprise software like WareGo is that it centralizes all data, acting as a single source of truth. With all necessary data in one place, the system can easily show you accurate and in-depth analytics, on-demand reports, and valuable insights. Managers can analyze consumer trends, preferences, and behaviors to make data-driven decisions that let them sell more. These valuable insights can be used to improve customer engagement tactics, marketing, and product offerings.

Omnichannel Fulfillment Example

Let’s go through a simple omnichannel fulfillment example.

Clara is scrolling through Instagram when she notices that her favorite clothing retailer is offering a new winter collection. After browsing through different clothing items, she finds one she likes, clicks on it, and is taken to the relevant item page on the retailer’s website. She makes an online purchase for this item.

Clara opts to buy the item online while picking it up at a brick-and-mortar store near her. She can thus pick up the item at a time of her choosing and avoid paying shipping fees.

When Clara purchases the item online, the system updates automatically to reflect the transaction and the new inventory level for the said item. The system will send this transaction information to the warehouse and the relevant collection point so that item delivery can be arranged.

Once her clothing item is shipped to her chosen store, an email and text message may be sent to inform her. Clara can now go to the store when it’s convenient for her to pick up the item.

Offering such flexibility also brings significant benefits to the retailer, besides high customer satisfaction. Studies show that almost half of shoppers who collect their online orders in-store will make additional purchases when they reach the store. Hence, there is a good chance that Clara will order additional items in the store when picking up her online order.

As you can see, this hybrid method is a good example of omnichannel fulfillment where the online channel is combined with a physical channel, providing flexibility, convenience, and a good experience for customers. Hence, the omnichannel strategy works well for improving customer engagement and sales.

8 Types of Omnichannel Fulfillment Tactics

We will now go through basic types of omnichannel fulfillment strategies. You can deploy them as-is or use them in combination based on your business model and customer preferences. Such tactics are being used extensively by leading brands in the USA and other markets to meet growing customer expectations.

1. Buy Online, Pick Up in Store (BOPIS)

Your customers can buy your products online via your website, ecommerce platform, online marketplace, social media, or advertisements. They are then free to pick up their online orders at a physical store of their choice. They can save shipping costs and even buy more items once they reach your store.

2. Ship from Store

The brick-and-mortar stores of retailers can serve as distribution centers. When an item is ordered online, the retailer can fulfill the order by shipping it to a nearby store rather than a warehouse.

3. Ship to Store

Customers can select the physical store location where they want their purchased item to be shipped. The advantage here is that customers can then arrive at the store at a convenient time of their choosing. This is necessary for those who can’t guarantee they will be home when the delivery is made. Also, they may shop around for more items once inside the store.

4. Ship to Home

The old-school model for ecommerce is where items ordered online are shipped directly to the customer’s home address from the warehouse.

5. Marketplace Integration

Sellers can reach out to broader audiences and enjoy higher brand visibility by using marketplace integrations. Hence, regular visitors to popular online marketplaces like eBay and Amazon can discover your brand and buy from you.

WareGo’s inventory system offers seamless integrations for eBay, Amazon, Etsy, Google Shopping, Walmart, and TikTok Shop.

6. In-app Purchases

Brands of all kinds can develop apps through which they can sell their goods and services. Customers can browse the app and buy products they desire. Retailers can design the app to offer a memorable brand experience.

7. Touchpoints and Kiosks

Touchpoints and kiosks inside apps can facilitate customers by offering them different purchase options, recommendations, and extra information that customers may find helpful.

8. Third-Party Logistics

Sellers can collaborate with 3PL specialists to outsource order fulfillment. This allows sellers to focus on their core business instead of dealing with the complexities of logistics. Furthermore, sellers who rely on 3PL partners can benefit significantly from their field expertise, thereby delivering goods on time and with precision.

WareGo has powerful 3PL coordination capabilities built in. Businesses can collaborate with your 3Pl partners to ensure on-time deliveries to your customers.

You can choose one or more of the above online selling methods to sell more products with greater efficiency. You can then incorporate the best practices shown below to take your sales strategy to the next level.

Omnichannel Fulfilment Best Practices

Customers are now more demanding than ever before. They expect you to deliver their items within 1 or 2 days.

Besides letting you improve the bottom line and achieve operational excellence, omnichannel fulfillment best practices can also help you meet the high expectations of demanding customers.

Mentioned below are certain best practices that firms can implement to improve their omnichannel plan.

• Implement a robust system that fully supports omnichannel sales. The software should track all product items in real-time and sync inventory information for all channels. Customers won’t be disappointed with stockouts, nor will you lose money from stockouts if you rely on the right omnichannel fulfillment tool.

• Branding should be completely uniform across all your sales channels. Branding themes, messaging, and overall experience should be consistent for all your online and physical outlets.

• Try to accommodate as many fulfillment methods as you can, such as BOPIS, in-store, online, in-app, and other methods mentioned above. Doing so will give greater exposure to your brand and let you reach out to broader audiences for more sales. Customers can benefit by choosing the method that is most convenient for them. A win-win for all concerned.

• Train all your staff in service quality and product information so that they can offer the best possible assistance to all customers. Paying attention to your staff in this way can mean a uniform experience for customers across all sales channels.

• Harness the power of machine learning to capitalize on customer data. Doing so will enable you to provide personalized experiences, relevant product recommendations, and targeted marketing. You will sell more goods while providing a better experience for your customers.

• Optimize your supply chain to ensure on-time deliveries for all inventory items. Modern supply chain software has everything you need to streamline logistics so you don’t experience stockouts or shipping delays.

• Keep your customers informed about their order status. For example, you can notify them when the item has left the warehouse for shipment and allow them to track the shipping status. This can significantly improve the customer experience, build trust, and improve customer loyalty. Order management software has all such features included in the customer portal.

• Keep track of KPIs (Key Performance Indicators) such as channel fulfillment rate, order accuracy, inventory turnover, and others. Advanced warehouse systems for smbs allow you to track these metrics in real time.

• Proactively take customer feedback and note their pain points. Responding positively to customer complaints and feedback is a great way to improve your brand image and omnichannel service quality.

• Outsource fulfillment to 3PL specialists. They have the know-how and experience to fulfill orders with high speed and great accuracy. You can save time, money, and effort this way while enjoying precise, speedy fulfillment. You can manage 3PL partners via robust software.

Implementing these best practices for omnichannel fulfillment can drive sales, improve customer satisfaction, and bolster your brand reputation.

Omnichannel Fulfillment Solutions – Key Features

To achieve operational excellence across the board, you should rely on proven omnichannel fulfillment solutions like WareGo. Here are the many different ways that WareGo can take your omnichannel performance to the next level.

Real-Time Visibility

Tracking inventory in real-time is the need of the hour for omnichannel sales. You can gain visibility across all channels and processes. Plus, you can manage proactively instead of reactively to prevent problems before they actually happen.

Inventory Data Sync

Inventory discrepancy is a significant problem with omnichannel sales. This issue leads to stockouts, lost sales, and unhappy customers. WareGo elegantly resolves this problem by synchronizing inventory across all sales channels. That is, the software serves as a single source of truth for all your channels, giving you the complete situation across all platforms. You can also prioritize order fulfillment easily to maintain customer satisfaction.

Inventory Management

ABC classification, serialization, slotting, and other inventory management methods come built in. These proven techniques can reduce staff travel time, speed up picking, and accelerate warehouse processes by intelligently organizing inventory.

3PL Coordination

Handing over part or all of your order fulfillment to 3PL specialists is a smart move since these entities have much greater expertise in the field. You can focus on your core business. However, you still need close collaboration to ensure everything goes according to plan. This is why WareGo offers advanced 3PL functions for real-time coordination. Timely shipments become much easier as a result.

Automation

Automated billing and invoicing can save your staff time and effort when paying suppliers and charging customers. There is also greater accuracy and higher speed since manual processes are fully automated. Automating returns management can keep staff productivity high and maintain customer satisfaction. Automated stock reordering prevents stockouts and saves time.

AI-Forecasts

AI-powered, accurate forecasts can prevent overstocking and associated high costs from eating into your profit margins. This is much faster and accurate than manual forecasts.

Analytics and Reports

Instant reports and detailed analytics give you valuable insights that can boost your omnichannel sales strategy. You will know exactly how each channel is performing and even find ways to bolster performance across platforms.

200+ Integrations

WareGo integrates out of the box with the most popular business tools. Our platform can sync inventory data with your ERP, CRM, accounts software, ecommerce platforms, online marketplaces, 3PL partners, shipping carriers, and others with ease. Manual data entry is eliminated. Subsequent human errors and delays also go away.

Conclusion

There are many different ways to improve your omnichannel performance, no doubt. But the easiest way to do this is by using a purpose-built omnichannel solution that has everything you need.

So you should wait no longer. Reach out to our experts for a free demo and see how our proven software can improve your omnichannel fulfillment.

FAQs

What is omnichannel fulfillment?

Omnichannel fulfillment is the centralized management of order fulfillment across different sales channels. At the core of this strategy is omnichannel software that lets you track inventory, orders, sales, and customer information for any channel that you deal with (be it ecommerce, physical stores, online marketplaces, mobile apps, or others).

Strong integration is crucial for successful omnichannel fulfillment. That is, software solutions that you use for various sales channels should integrate seamlessly with the omnichannel fulfillment software for this strategy to work.

WareGo makes omnichannel fulfillment a cinch by providing 200+ integrations for the most popular business software solutions. Thanks to these powerful integrations, you can orchestrate a successful omnichannel strategy where you enjoy high productivity, fast and error-free order fulfillment, and high customer satisfaction.

Omnichannel fulfillment is different from the multichannel sales strategy, where various channels are managed separately. That is, each channel has its own inventory and software, which are not integrated with a centralized fulfillment software. Hence, multichannel fulfillment is not as efficient as omnichannel fulfillment.

What are the 4 pillars of omnichannel?

The 4 pillars of omnichannel strategy are key dimensions of your omnichannel sales that you must focus on for success. Here they are.

Visibility: For each customer, you should have complete data for all touchpoints. That is, you need full visibility for all their brand interactions. Such data and visibility are vital for understanding customer behavior and formulating the right sales strategy based on these insights. WareGo provides complete information on sales, customers, and inventory.

Measurement: Tracking key KPIs is paramount for omnichannel success. You can gauge the effectiveness of your omnichannel strategy by tracking metrics like inventory turnover rate, order accuracy, fulfillment rate, conversion rates, and so on. WareGo lets you follow these and several other metrics in real-time.

Personalization: Gather customer data across all touchpoints, including feedback and reviews, to understand how to improve customer engagement and experience. Aim to provide a highly personalized experience so that brand loyalty goes up. WareGo provides customer portals and feedback forms in addition to customer data.

Optimization: fine-tune your omnichannel strategy, customer engagement, and brand experience using your data. WareGo gives you the tools to do this. For example, forecasting tools prevent stockouts, thus improving customer satisfaction and loyalty.

What are the 4 C’s of omnichannel?

Here are the 4 C’s of omnichannel marketing.

Convenience: Your customers crave convenience. That is why you offer different sales channels for customers to select from based on what’s convenient for them. You should take it a step further by easing each step of the customer journey so that they keep coming back for more.

Continuity: It should be easy for customers to switch channels when they like. Doing so is possible only if your different channels integrate easily with your inventory system software. WareGo’s omnichannel software provides 200+ integrations for seamless integration.

Consistency: The customer experience should be consistently good across all channels. For example, you need to provide the same level of service quality and stock availability. It is possible to do this with WareGo thanks to its comprehensive omnichannel features, like syncing inventory data across all channels.

Context: Based on context, you can provide the right recommendations, offers, content, and promotions to your customers so they buy more. Insights from analytics, data, reports, and forecasts using enterprise software like WareGo give you the necessary context.

What is an example of an omnichannel?

An example of omnichannel marketing would be buying an item using your phone browser or mobile app and then opting to pick up the item at a physical store near you. Called as BOPIS (Buy Online, Pick up In Store). Such options offer high convenience to customers. A sound omnichannel strategy can lure customers by offering several convenient sales channels.