Skip to main content
Omnichannel Retail Guide Chapter 4

Omnichannel challenges for retailers


Keeping up with fast changes is never easy in running a business. This is the reason why so many retailers are struggling with omnichannel. Being aware of omnichannel retailing challenges when shifting to omnichannel prevents you from unnecessary cost and effort (and cut down the suffering). Hence, the ultimate goal of this chapter is to educate you on the disadvantages of omnichannel and give you some tips to overcome them with as less pain as possible.

Technological barriers

Requiring a complete integration of all channels, an omnichannel strategy increases the complexity of managing operations and the supply chain. To satisfy customers’ expectations, retailers must have an advanced warehouse management system to track inventory in all repositories in real time. Besides, speedy delivery is also expected.

However, when a business transits to omnichannel, the previous technological infrastructure can’t ensure accurate inventory and order management across all channels, leading to a failure in omnichannel execution.

To deal with this omnichannel challenge, retailers need to prioritize improving their inventory management to have inventory visibility. Besides, order management also needs attention so that all orders are fulfilled.

Although the above issue can be solved with technology, it’s noteworthy that technological upgrades are costly. Hence, many retailers are hesitant to transit to omnichannel.

However, retailers can still execute omnichannel without a huge amount of capital.

They can execute an omnichannel pilot in a trial location to see whether this strategy fits their business before upscaling it.

Besides, in case of limited capital, optimizing inventory management is always the priority, before considering other components like order fulfillment, purchase management, or marketing.

Synchronization of data in the integration process

As mentioned above, the key of Omnichannel is the integration of these following things:

  • Sales channel
  • ERP
  • CRM
  • Social media
  • Market

Transiting to omnichannel leads to a huge data transformation.

In that situation, the challenge of omnichannel retailing is how to synchronize all the data across channels in a faultless way without losing any information. It is a must to help the system to perform smoothly with completely integrated information from multiple channels.

To deal with these disadvantages of omnichannel, a well-planned strategy is the ultimate solution.

We suggest below a strategy, enterprise data management (EDM) strategy. It targets to build the data-centric organization. EDM cohesively joins the key building blocks of data management into one holistic view.

enterprise data management
  • Data Quality Management – KPIs, data records rules, metrics, monitoring tools
  • Metadata Strategy – metadata types, data streams, business data dictionaries
  • Governance – roles, and responsibilities, change management processes, policies, and procedures
  • Data Analytics – dashboard, automated reporting, shaping
  • Data Architecture – data modeling, data storage, ETL tools (Extract, Transform, Load)
  • Architecture Technology – infrastructure and process systems, commodity hardware, large data platforms
  • Training/Education – users, data management, operations, customers, managers
  • Data operations – data lifecycle, data control

To simplify, it’s a strategy in which data is divided into categories including interconnected kinds of information.

When transforming data, people manage all data under each category, which makes it easy for the managerial level (such as store managers) to check whether the information is fully converted or partially missing.

If a data transformation is still beyond the retailers’ ability, they can contact some omnichannel solution provider companies.

There are experts who are experienced in managing databases in executing omnichannel, with privacy completely guaranteed will solve their omnichannel challenges fluently.

How to improve omnichannel customer experience

Retailers, who are struggling with omnichannel, know that customer loyalty is the key to business success.

Returning customers spend 67% more than new ones.

Moreover, it’s always cheaper to retain an existing consumer than to attract a new one.

However, is only satisfaction enough to keep a customer engaged with a company?

60–80% of customers who describe themselves as satisfied do not go back to the business due to a lack of connection.

It means that good products or services are not enough to turn a new customer into a long-term one without an engagement strategy. In this ever-changing market today, the first and foremost goal is to attract more long-haul partners, not the single-deal ones.

In the age of multi-channel, retailers adopted a lot of engagement strategies but used a single engagement platform. It means that all promotion campaigns were launched separately in each channel.

There were campaigns across channels but the number of them was insignificant with a relatively low level of integration of all channels.

When transiting from multi-channel retail to omnichannel retail, there are a lot of omnichannel retailing challenges that retail businesses need to handle.

In particular, a company must change its customer engagement programs since this business model requires a more complicated one.

Obviously, there’s no way a customer engagement strategy based on a single view from a channel can ensure the connection between a business with their omnishoppers.

To successfully nurture the engagement with customers and overcome this typical omnichannel retailing challenge during the omnichannel execution, combining online and offline channels is not enough for a born-multi-channel business.

Their first step is to determine the target omnishoppers and build a clearly mapped-out buyer journey based on the understanding of customer behavior across channels.

The next step is to design and deploy an appropriate strategy, starting with optimizing the omnichannel user experience together with consistent branding and omni-marketing.

Finally, an efficient measurement should be carried out to measure customer-centric KPIs such as customer lifetime value, customer profitability, and level of customer engagement.

Omnichannel retailers can also use some reward or redeem programs as incentives to make customers come back.

Struggling with channel conflicts

Usually, a multi-channel adopting business evolves from a single-channel origin, leading to a channel getting more focus than the others.

It can be a webstore or a brick-and-mortar store which is the very first sales channel.

In other words, one of the omnichannel retailing challenges is for all channels to be completely integrated and treated equally.

All sales channels, online or offline, are under the same control and distribution system.

This is also a headache for any eCommerce and/or sales manager to overcome in struggling with omnichannel retailing.

At the very first phase of omnichannel execution, the infrastructure development of a retail business often fails to meet the goals and customers’ demands. Consequently, channel conflicts arise when inventory becomes limited while goals are incompatible.

When attempting to minimize inventory, retailers must consider which channels should get priority of limited inventory, resulting in channel conflicts.

When prioritizing one or some channels, retailers may miss orders from the others resulting from a supply-demand gap, which is a “taboo” in the omnichannel culture.

Proactively addressing channel conflict is obviously a must for retailers when transiting to omnichannel.

By anticipating the customers’ demand, omnichannel retailers keep themselves always one step ahead of customers.

To predict the customers’ needs, retailers must be updated with real-time inventory data and measure the sales growth of each channel based on sales history.

Besides, to overcome omnichannel retailing challenges, retailers must constantly search for greater efficiencies, predict disruption and come up with solutions that generate savings and exploit more opportunities.

Moreover, technology is constantly developing, leading to technological omnichannel solutions that enable retailers to access the nearly exact prediction of supply needed.

With an advanced inventory management system, some technologies can automatically surmise customers’ demands based on inventory visibility and the sales history of each channel.

Continue Reading

Previous Chapter

Omnichannel Strategy for Retailers

Read Chapter 3

Next Chapter

Omnichannel KPIs

Go to Chapter 5
Close Menu

New: Try it yourself!

See Magestore POS in action

Fill out this form and book a time when you're available to test the POS yourself.

There is no need to spend time on a product that you don't need. Have first interactions and explore every feature of the POS to see if it fits your business requirements.

POS Demo

Admin/Backend Demo

There is no customization or advanced features on the demo version. Remember that Magestore POS is customizable for even complex business requirements. You can request a personalized demo with our consultants at any time.

What is Magento POS

A Magento POS (point of sale) system is software integrated with the Magento platform to synchronize data between your online and offline stores and facilitate retail operations. Magestore POS is a web-based and Magento-native POS which requires at least one Magento website to work.

Who needs Magento POS system

The Magento POS system is developed for retailers with both Magento eCommerce websites and physical stores, and want to use the Magento website as a centralized place to manage all sales data and sell both online and offline.

Some features of Magento POS system

A basic Magento POS can work as a cash register to create orders, add discounts and taxes, print receipts, and manage sales. But a complete Magento POS system can assist you with more advanced tasks, such as inventory control, supplier management, loyalty programs, etc.

Why use Magento POS

  • Magestore POS is native to Magento and is installed directly on your Magento backend without third-party plugins, to inherit all Magento's power.
  • You can use our Magento POS on multiple devices, web browsers and create unlimited accounts without extra fees.
  • All data stay safely on your side, and your POS doesn't have to rely on third-party servers to work.
  • You only need to pay once for the POS license and get full ownership of the solution.

45-minute Live Demo

Let us show you how it all works

After you complete the registration form & schedule a meeting with us, we'll contact to ask for your confirmation. This demo session is completely FREE & requires no commitments.

1. Where we'll discuss

We do screen sharing, so the demo will be conducted using Google Meet.

2. What we'll do

Our specialists will guide you through the POS solution and answer any questions you have. All to see if our POS system fits your business requirements.

3. What you'll get

  • A LIVE demo session to see how Magestore POS works
  • A FREE demo site to explore every product feature
  • A FREE consultation with our expert to discuss the best-fit solution for your business.

4. Additional information

  • A demo typically lasts for 45 minutes, but we can adjust the duration based on your needs
  • No preparation required but it's nice to have your requirements clear
  • Additional team members are welcome to join
  • If you want to see how Magestore POS works in reality, you can contact one of our customers and ask for their experience
  • Magestore doesn't do cold-calling, we only contact you on request.

Magestore | POS for Magento

"*" indicates required fields

Schedule a demo

Our solutions only work with Magento (incompatible with Shopify, WooCommerce, and other eCommerce website platforms).
Please enter a number less than or equal to 9999.

By providing your information you agree to our privacy policy.

This field is for validation purposes and should be left unchanged.

Magestore | POS for Magento

About the Magento platform

1. What is Magento?

Magento is an open-source platform that helps retailers create eCommerce websites, released on March 31, 2008, by Varien and developed on Zend Framework. In 2018, Adobe acquired Magento with a price of $1.68 billion. There are currently about 270,000 eCommerce websites running on Magento in 2022.

2. Why do retailers choose Magento?

Most of our customers say Magento is speedy and more customizable than others; it is suitable for medium and large enterprises or fast-growing businesses with complex requirements/customizations.

Not sure if you're using Magento, check your website here!

3. What to do next?

  • If you are new to Magento or searching for eCommerce platforms, you can explore more about Magento in this article.
  • If you are looking for Magento website development services, please reach our dedicated service team here.
  • If you've already had a Magento website and are searching for a POS system, please close this pop-up and continue exploring.