Although implementing an omnichannel strategy may be beneficially for the production and branding of a business, it also comes with its challenges. If not properly educated implementing omnichannel strategies it may cost you unnecessary costs and effort.
Below are disadvantages of implementing an omnichannel strategy in your company:
By implementing an omnichannel strategy it is important to know that there will be a lot of technological integration. This complicates the management of operations and the supply chain of the retailer. With new technology this means that time will be needed to learn the new technology and it might not live up to company’s expectations. The new technology has to constantly be up-to-date and has the most up to date systems such as Warehouse Management Systems (WMS) in order to keep track of the inventory at all times and meet the customer’s demand of quick and on-time deliveries(Omnichannel retailing thesis, Kersmark and Staflund)
Companies should ensure that this new technology is tested and properly developed before it is implemented and introduced to the company.
Moran and Brightman defines change management as “the process of continually renewing an organization’s direction, structure, and capabilities to serve the ever-changing needs of external and internal customers.(Omnichannel retailing thesis, Kersmark and Staflund)"
Implementing an omnichannel strategy can be difficult if a company does not properly present the benefits to its organization especially since it requires a change in work attitude from its employees. From the company’s board to their employees, everyone should be onboard to welcome the change.
Channel conflict and cannibalization are great concern for retailers when it comes to implanting an omnichannel strategy. This happens when resources such as staff, technology and capital are scarce, and the goals are incompatible. Having limited inventory can increase the chances of channel conflict due to the decision to decide which channel should have priority with the limited resources.
Consistency may be an issue that can arise due to many different channels and differences involved in an omnichannel strategy. Therefore, the company has to decide how to implement uniformity such as pricing and promotions, delivery and return policies and assortment. It is important that the customers do not experience large inconsistencies between the different channels.
It is also important to keep in consideration that the negative and positive experiences from the original platforms will carry on to the other additional channels. Therefore, customers can have an overall positive view of a company. This goes from trust from the company website to their apps.