Why a good e-commerce platform isn’t always the right fit for omnichannel

Lonneke Vromans -

Many e-commerce platforms were originally built for online sales. And they are often very good at it: presenting products online, enabling customers to order and pay, and then sending the order on for fulfilment. For pure players, this is a logical approach: the webshop is the main sales channel, so many processes can be organized around it.

For retailers and brands that combine online sales with physical stores, the situation is different. The webshop is not the centre of the operation, but one of several sales channels within a broader commerce operation.

An omnichannel-first solution is built around this reality. Products, inventory and orders are managed centrally, while webshops, stores and other sales channels all use the same foundation. With an e-commerce-first approach, the webshop is the starting point and omnichannel processes are often added later.

Many e-commerce platforms can now support these processes perfectly well through additional modules, apps, integrations and custom development. So the question is not whether an e-commerce platform offers omnichannel functionality, but how that functionality is organized.

Inventory clearly shows the difference

In pure e-commerce, inventory management is mainly about the stock available for online sales. In omnichannel commerce, inventory can be spread across a warehouse, stores, suppliers and other locations.

A product may be sold out in the warehouse, for example, while still being available in several stores. You may want to show that store inventory online, make it available for click & collect, or use it to fulfil an online order.

So you need to know not only how much inventory is available, but also where it is and how you want to use it. When the webshop is the starting point, additional logic and integrations are often needed to make this possible.

Orders also move between online and offline

The same applies to orders. In pure e-commerce, the route is usually straightforward: the customer orders online, the order is shipped from a warehouse or fulfilment partner, and any return follows the same channel.

In omnichannel commerce, multiple routes can exist alongside each other. A customer can order online and pick up in-store, a store can ship an online order, and an online purchase can be returned to a physical store.

Not every retailer needs all of these options. But as soon as stores become part of fulfilment, you need to be able to centrally determine how and from which location an order should be processed.

The practical implications of an e-commerce-first approach

You can build a strong omnichannel environment with an e-commerce-first solution, but the question is what it takes to do so.

Store processes, for example, may be added to the webshop through additional functionality. Inventory logic can become spread across the ERP, webshop and other systems. An OMS or custom solution may be added for order routing. Integrations ensure that all systems continue to work with the same information.

This can work perfectly well, but every addition means more systems and integrations need to keep working together. A change to inventory, fulfilment or a store process may therefore require changes in several places.

As a result, what seems like a relatively simple business requirement can quickly become a technical project. This takes more time and money and makes the organization more dependent on developers, implementation partners and custom development.

Integrations should add value, not hold the foundation together

An omnichannel-first solution also requires integrations. ERP, POS, WMS, payments, logistics, loyalty and other specialized solutions remain important.

With an e-commerce-first approach, however, integrations are more often needed to make the core commerce processes work together.

When product information, inventory and orders are managed centrally, integrations can primarily be used to connect specialized systems. They no longer need to ensure that inventory, orders and other information remain continuously synchronized across different systems.

This makes it easier to add new capabilities or adjust existing processes without requiring additional integrations and custom development every time.

Don’t just look at what you need today

For a pure player with no plans to move into physical retail, an e-commerce-first solution can be an excellent fit. But for pure players with omnichannel ambitions, the decision is different.

Opening your own store, working with retailers, adding pickup points, or using physical locations for inventory and fulfilment changes the way commerce needs to be managed.

If those ambitions already exist, it makes sense to consider an omnichannel-first solution from the start. Not because you need every omnichannel capability immediately, but because the foundation is already in place when online and offline eventually come together.

When you make the move to omnichannel later, you do not have to rebuild the technical foundation.

“An e-commerce-first solution organizes products, inventory and orders around the webshop. An omnichannel-first solution organizes these processes centrally and connects webshops, stores and other sales channels to that foundation.”

NextChapter is built for omnichannel

NextChapter was built from the ground up for omnichannel commerce. The multiˣ suite brings webshops & CMS, PIM, OMS, marketplaces and integrations together within a single suite. Product information, inventory, orders, content and sales channels are managed from the same foundation.

ERP, POS, WMS, logistics, payments and other specialized systems can connect to this foundation. This leaves room for best-of-breed solutions without having to spread the most important omnichannel processes across separate systems.

Do you sell exclusively online and plan to keep it that way? Then an e-commerce-first solution can be an excellent fit. But if online and offline need to work as one operation, either today or in the future, it is worth looking at the foundation your commerce is built on.

Discover how the NextChapter multiˣ suite brings online and offline commerce together from one omnichannel-first foundation.

Lonneke Vromans is Project Manager bij NextChapter eCommerceLonneke Vromans
Project Manager - Customer Relations