Best Multichannel-Retail Software & Tools

Multichannel Retail Management Software Definition: What is Multichannel Selling Software?

Multichannel retail management software primarily supports retailers in managing product data. Such applications are often referred to as multichannel selling software or in Germany as multichannel retail software (or simply called multichannel tools). As indicated by the term "multichannel", it is not just about the simple organization of offer data. More specifically, information for goods or services that are for sale across multiple channels can be managed efficiently.

The main objective is to consolidate offers and their data in one place to make the channels easier to manage and update. As a result, (potential) customers receive consistent and ideally high-quality information. This in turn significantly increases the chances of sales.

The channels to be served can include not only a company's own e-commerce platform but also third-party providers such as Amazon, eBay or Facebook. Even offline processes or hybrid processes, such as click-and-collect purchases, can be supported with relevant data. The integration of online and offline is more in focus of omnichannel platforms. Multichannel retail software is more focused on typical e-commerce channels. However, the boundaries here can sometimes be fluid.

Why Should Companies Use Multichannel Retail Management Software?

In the context of today's online possibilities, retailers (both those with bricks-and-mortar stores and e-commerce vendors) face a variety of challenges. Two points are particularly important:

• Customers no longer make their purchasing decisions as statically as they did ten or even 20 years ago.

• Moreover, they now make their purchases in an absolutely self-determined manner.

At the beginning and also during the further course of the online boom - in the 2000s - the possibilities of online trading became more and more apparent to people. Purchasing increasingly moved online, but usually only a few online shops were used. Connections to stationary retail were scarce.

In addition, there was a significantly lower base of information on the net. Although interested parties were able to gather more and more in-depth facts about individual goods, services, relevant areas of application, etc., this was not comparable to today's flood of information. Web users initially had to grapple with the corresponding information options. Things that were stated online - for example in product descriptions - were often taken at face value. Questioning "everything" on the net only became common after widespread reports of scam schemes on the internet, data scandals etc.

Today, most people know how to make the best use of the opportunities offered by the online world. It has become part of their everyday life and many typical processes would be hardly conceivable without it. Accordingly, they confidently use numerous channels and increasingly combine online and offline.

Users inform themselves (especially for larger or more expensive purchases) in more detail than ever before and for this, they get a huge data and channel selection: company websites, blogs, comparison portals, review sites, social media, forums and other channels offer comprehensive guides, tests, comparison tables, white papers, e-books and many other possible forms of content.

Furthermore, the number of commerce alternatives is continually increasing. New online providers with new benefits are constantly being added, spreading across all possible sales channels. Being active on Amazon and eBay in addition to their own online shop is now a matter of course for many retailers. The established companies, some of which also operate with on-site stores, must keep pace with this development.

If you want to survive in your market in the long term, you should align your business with the current usage patterns of typical online and offline-aware customers as a multichannel business. In the course of this, it is of course necessary to optimally satisfy the probably great desire of your target customers for high-quality and consistent information across all channels. This is hardly possible without the use of specific software. A multichannel tool provides many important corner features to assist with this.

How Does Multichannel Software Work?

What multichannel retail management software is fundamentally supposed to achieve has already been explained above: it is about making the management of product data and ultimately also products that are distributed across multiple channels more efficient. How this ultimately works depends, of course, on the features that an application includes. The following elements are typical.

• Product Information Management: This is undoubtedly the core function of multichannel retail management software. Maintaining product information across all used channels is a constant challenge for companies. Multichannel retail software allows users to organise corresponding data in a central location. This ensures efficient processes. In this process, the target customers always receive consistent information - regardless of the channel they use.

• Order handling: Multichannel tools can also centralise order processing or related data. This makes corresponding processes simple and uniform. This not least facilitates the tracking of orders and the handling of customer problems. All data is available in one place.

• Reports and analyses: When a company uses a multitude of channels, each channel has different sales and customer data. Multichannel retail management software allows users to import this data so that it also exists centrally. Finally, it can be analysed and provide useful information about the performance of the company as a whole.

• Multichannel inventory management: By consolidating order information from the channels in a multichannel retail management software, businesses can optimise their inventory management. This means that each channel has precise stock information at all times. This way, customers cannot accidentally purchase an item that is not in stock. The line to omnichannel software here is very fine.

• Payment processing: Multichannel management software can optimise payment processing - both for businesses and for customers. Locating payment data in one place simplifies accounting and eliminates the need to monitor multiple processors for different channels.

• Consolidation of customer data: Customer data is of inestimable value for any company. Multichannel e-commerce software can bundle this information in one place so that it is easily accessible and usable. As customers come from many channels, relevant data is usually scattered across individual channels. This makes comparisons and the creation of customer profiles much more difficult. If such processes can be centralised, suitable information is always available quickly. This means that customers with a problem are generally served faster and more accurately. After all, support staff quickly have all the data they need to solve the problem. Of course, it is advisable to integrate a CRM in addition.

What are the Advantages and Disadvantages of Multichannel Tools?

Due to the aforementioned developments, setting up shops in different channels is economically highly relevant for many companies. However, managing multiple sales points across different platforms is a challenging task. Multichannel software greatly simplifies these tasks for companies.

Here, all product information from the channels is consolidated. All channels can ultimately be managed from one place. The information remains consistent through centralisation. Thus, inventory and orders can be handled correctly. The best thing is that the processes also receive an enormous efficiency boost. The following is a detailed list of the main advantages of Multichannel Retail Management Software.

• Brand consistency: Different marketplaces function differently. It can be difficult to manage multiple shops, all of which are based on different guidelines and software. This can lead to customers having completely opposite experiences with a brand depending on the marketplace. Multichannel retail software contributes to ensuring that all customers see the same facts, resulting in a consistent customer experience. These tools allow users to use their branding and the same product descriptions, product images etc. on a variety of marketplaces.

• Data merging: Managing multiple shops on different channels also means that product data and associated sales data, customer data, and additional information accumulate across multiple platforms. This can be collected in a multichannel retail management software, making it immensely easier for companies to use.

• More efficient order processing: A company that operates multiple online shops may only have one warehouse or fulfilment centre. It can be difficult to display and maintain an accurate inventory of available products. Multichannel retail software allows data-based order processing to be managed from one location. Inventory data is organised for the entire company and not for each individual channel. In some cases, the ordering process can even be automated.

Despite the strong advantages mentioned for multichannel retail management software, there are also certain disadvantages or at least difficulties that can arise. The following problem is particularly common.

• Multichannel software does not replace a strategy: Not infrequently, multiple channels are blindly stocked with products and various software systems are used for their administration in order to boost sales quickly. Goals, target group preferences, the determination of content perfectly suited to one's own customers and other strategic processes are simply skipped. This is a mistake! Because even the best multichannel retail management software does not bring companies the desired results if it is operated without a suitable strategy. Such a tool is by no means a self-runner for multichannel distribution. If it is used blindly, it often means a lot of money is wasted.

Multichannel Software Comparison: How to Choose the Right Multichannel Retail Management Software?

Multi-channel management is more complex and individual than many companies initially think. Accordingly, it is important to proceed as differentiated as possible when selecting a suitable multichannel retail management tool. Interested parties should always consider the following selection criteria in their search. Adapting to your own requirements The functions and capabilities of a multichannel retail management software are undoubtedly the main reason why such a solution is sought at all. Therefore, its suitability to meet one's own requirements must be carefully checked before purchase. Those responsible should pay particular attention to the following points:

• Integration capabilities: For full effect, multichannel retail management software often needs to work closely with other tools, of course, and be able to serve the right channels. Integrations, for example with marketplaces, web shop systems, CRM and other programs, should be checked as required.

• Support inventory multichannel management: Multichannel retail management is primarily about the organisation of product data. Corresponding solutions can, however, offer much more than just synchronising images and descriptions. They also manage product inventories across different channels. This is indeed one of their other main strengths. Therefore, interested parties should pay attention to such features.

• Multi-user support: Multichannel management is almost always teamwork, despite software support. For the latter to run efficiently and securely, the chosen solution should allow support for multiple users with different levels of access to data and functions.

Overall advantageous pricing Many retailers are tempted to focus primarily on prices when researching the right multichannel retail management software. Of course, interested parties should choose a system that they can afford. However, it is not wise to simply opt for a particularly cheap program. After all, this may not meet the respective requirements.

If, on the other hand, the targeted functions cannot be found in any system of one's own price class, compromises should be made with the nice-to-haves first. Sometimes it is smarter to start with a smaller range of functions and then scale the solution if a greater success occurs. Those who reach for a program with comprehensive features despite their own budget risk this greatly eating into potential profit.

Good support Good support is always important with software. The responsiveness and quality of (technical) customer service should be checked carefully - both during implementation and in daily operation. In fact, a large number of negative online reviews stem from inadequate customer service. Slow responses and insufficiently trained support staff can greatly exacerbate problems with a system. Corresponding help sometimes leads to a negative chain reaction. In the worst case, data is organised detrimentally or even deleted.

Overall quality: Test, reviews and references Even the most careful online analysis cannot give companies and teams a precise idea of whether a system is truly suitable for their own requirements and conditions. Real user reviews and other references already provide a closer overview. However, one can only be sure with a test. Fortunately, many development companies offer special trial or demo versions for this. When testing a system, particular attention should be paid to the following features.

• How "robust" is the implementation? Does it work every time without errors? Or is it somewhat unreliable and leaves users uncertain whether it has really fulfilled its task? Keyword: process transparency.

• How is the responsiveness and user-friendliness? Is the application quick and intuitive for your own team to use? Is there integrated help or a searchable knowledge database so users can get answers quickly?

• How "available" is the software? No system has a 100-percent uptime without failures or times when it works slower. Interested parties should check the reliability and additionally ask the provider how many outages or performance loss there were in the last twelve months.

• How quickly does the company respond to changes, such as new marketplace guidelines, and how often are new features introduced? The provider of a multichannel retail management software should ideally share a roadmap of planned changes with interested parties. Here you can follow which major developments are upcoming. Important adjustments in the regulations of individual marketplaces should of course be taken into account as soon as possible.

How Much Do Multichannel Tools Cost?

Even simple multichannel management software is available for free. However, the range of functions is sufficient for only very few companies. Otherwise, the pricing models are usually based on the following factors:

• Costs are calculated as a percentage: It may be that a certain percentage of the sales or a fee per order is used as the basis for payment of the system.

• Staggered subscriptions: Here, an increasing data or order volume is included with a rising price.

• Effort per function or module: In a modular approach, customers pay according to the scope of their bundle. They can put together their tool package quite individually.

• Price-per-user: Multichannel tools are often calculated with fixed monthly costs for each user of the system.

• Various combinations of the above models: Combinations are also quite possible. For example, there are staggered subscriptions with additional fees for exceeding limits, for certain functions, or for additional users.

Depending on the variant and equipment, interested parties should expect costs between five and more than 1,000 euros per month.