In a perfect world, retailers would set up branded online stores and have customers come directly to them. But we live in a challenging world, and engaging and retaining consumers via this direct route can be an expensive business fraught with risk.
Since the turn of the century, the retail landscape has undergone a seismic shift. The power once held by dominant retail brands has now shifted to consumers, who have the freedom to shop anywhere. This rapid evolution of the retail landscape, driven by changing consumer behaviour, is a clear sign that the era of high-profile retail brands is giving way to a more diverse and connected retail environment.
For retailers, multichannel retail now means so much more than simply listing items and fulfilling orders from a handful of websites.
What does the multichannel retail landscape look like in 2024?
Consumers love the convenience, choice and value offered by online marketplaces. In Linnworks recently published
State of Commerce Ops 2024 report, 51% of consumers said they preferred to shop on online marketplaces, compared to just 20% who favoured shopping directly on brands websites.
The online marketplace sector has become highly fragmented. While sites like eBay and Amazon continue to dominate regions like the UK and the US, they are facing fierce competition in their home markets from look-a-like competitors, famous traditional retail brands, and niche operators. Meanwhile, brands you may or may not have heard of dominate the market in other geographies.
Online retail happens everywhere on traditional and mobile-optimised eCommerce websites, mobile apps, and social media channels. And while many of these multichannel retail environments look very familiar, new channels like TikTok Shop are completely redefining what online shopping looks like. In short, consumers have never had so many choices, and customer loyalty is harder to win.
If retailers want to keep up with the competition and grow, they can be seen in more places and adapt to the needs of the market and the changing expectations of consumers. This is reflected in the fact that 52% of the retailers we speak to state their number one goal is to expand to new markets and new channels is their top priority.
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