What Is Omnichannel Retailing?
Shopping is an economic activity where a consumer browses through the available products or services offered by one or more merchants with the primary intention to buy a suitable variety of them. There are different forms of shopping such as shopping online, shopping at a shopping mall, shopping at a boutique and shopping in a big retail outlet. Shopping can be classified according to the method of shopping, price or time. In a shopping mall, there is a common theme that all the products showcased belong to one particular category. A customer can go to any department to look for the product that he is looking for while a customer in a big retail outlet will find it quite difficult to move from one aisle to another. In a shopping center, customers can have the freedom of browsing for the things they want as well as checking out the latest products being displayed.
Shopping centers make their income from selling various merchandise at a wholesale cost. The profit realized from retailing is then shared between the wholesaler and the retailer, so as to keep the supply of the product on hand and also allow retailers to increase their sales. Retailers also indulge in retailing so as to sell more merchandise and generate an extra source of income. This is how the retail industry of a country earns its revenue.
Omnichannel retailing includes the concept of combining traditional retail with online retailing. The most popular example of this is the combination of shopping malls and traditional retailers. In the case of traditional retailers, it is possible to have an outlet located at a specific place, but the reach of such an outlet is quite limited. With an omni-channel retailing strategy, a store is set up at a shopping center where it can cater to customers coming from any part of the city. This increases the number of customers shopping at the store and thus helps to increase the number of sales.