The surge in sales channels has brought inventory problems, and 53% of retailers reported that management pressure is high

During the epidemic, many offline retailers tried different e-commerce platforms. The business volume brought by these different e-commerce platforms also brought tremendous pressure on retailers' inventory management. A recent study by Advanced Supply Chain Group shows that multi-channel retail causes inventory management problems for 53% of retailers.

According to international supply chain data , under the influence of the epidemic and Brexit, nine out of ten retailers plan to increase their sales channels. According to a data survey, retailers sell through an average of about five channels and platforms , and 71% of retailers expect the number of their channels to grow further.   

The study also investigated which channels and platforms are the most popular : among the merchants surveyed, 65% chose their own e-commerce stores, another 47% chose Facebook , third-party online marketplaces and Instagram had 41% and 35% of the votes respectively, and physical stores still accounted for nearly half.

Diversifying sales channels is helping retailers mitigate the unpredictability brought on by events such as the pandemic and Brexit . These diverse routes to market can help merchants increase sales and profits by attracting new customers and optimizing retail prices .

However, while expanding sales channels creates more opportunities, it also brings more challenges. In a study by Advanced Supply Chain Group , 53% of retailers reported that multi -channel sales lead to problems in inventory management and delivery and return management; 38% of retailers believe that managing inventory levels is the biggest challenge of multi-channel sales ; 35% of retailers mentioned that selling products through multiple channels causes out-of-stock situations.

The main reason for this series of problems is that different platforms and stores have different requirements for inventory. Some merchants need to expand their inventory, while some merchants are troubled by out-of-stock conditions. These problems are challenges to merchants' inventory flow and forecasting ; secondly, various problems with international freight have also put pressure on merchants' supply chains.

Costco’s chief financial officer also said container shortages and port issues have caused delays in categories such as furniture, sporting goods, lawn and garden, and food and sundries, such as seafood and imported foods. Dollar Tree Inc.’s chief financial officer said import freight costs have increased significantly, putting moderate pressure on domestic freight .

In the survey on dealing with inventory problems, 47% of retailers chose to recruit more employees to handle inventory, 45% chose to expand warehouses and space , and 42% of retailers increased the number of suppliers from which they purchased products to solve inventory problems.   

The new sales model of physical stores + multiple e-commerce channels has brought opportunities, pressures and more intense market competition to retailers . Merchants are also required to pay attention to accurate supply chain management to ensure that each transaction can bring customer satisfaction and considerable revenue .

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