Adopting an omni-commerce business model is an excellent way for brands to not only stay afloat but climb the ranks in today’s competitive markets.
It is reported that omni-commerce business owners retain 89% of their customers. This is a huge number of customers that are retained by omni-commerce businesses, and it is one reason why omni-commerce businesses tend to have a higher success rate.
The term “omni-commerce business model” may be a concept that is unfamiliar to many people. Therefore, in this article, we give a brief introduction to omni-commerce. Furthermore, we will discuss in detail two of the most popular omni-commerce business models that you can use to upgrade your brand.
Before we get started, let’s first define omni-commerce.
Omni-commerce means using multiple “channels”, both online and offline, to conduct business tasks. These tasks include marketing, sales, customer support, payment transfers, etc.
A brand that uses multiple channels to do business is known as an omni-commerce business.
For example, a brand with a brick-and-mortar store can become an omni-commerce business by also having:
The above brand is selling products or services both online and offline. Therefore, it can be referred to as an omni-commerce business.
More than 53% of retailers are investing in tools and technologies that allow them to sell through different channels. Therefore, if you would like to remain ahead of the game, you should also consider adopting an omni-commerce business model.
You can read the following Ultimate Guide to Omni-Commerce article for a more detailed look into omni-commerce.
Omni-commerce is a method through which brands can achieve the following sought-out goals:
Omni-commerce can take the form of several business models that use different combinations of online and offline channels. However, in this article, we will be looking at two of the most popular omni-commerce business models:
These two omni-commerce business models are popular because they are easy to implement. Moreover, they don’t need too many resources. And they can easily form the blueprint for a more sophisticated omni-commerce business model.
So let’s get started with the first model.
The first omni-commerce business model involves using a physical store and a website to run a business.
In this omni-commerce business model (henceforth referred to as “Model 1”), the main business channels consist of a physical location (store, warehouse, pickup point, etc.) and a business website.
Let’s take a look at the role that each of these channels plays in this omni-commerce business model.
The website in this omni-commerce business model provides customers with information about the business. Some of the information the website provides includes:
The main purpose of the website is to create an online presence for a brand. As a result, the brand is exposed to more consumers. In addition, the website is used to “encourage” customers to visit the physical store to complete a purchase. This is because a majority of people still prefer to shop in-store.
With an online presence established, a brand owner will be able to utilize the heavy traffic on the internet. Moreover, it is reported that there are 5.16 billion (yes with a “B”) internet users in the world today. Therefore, if a business wants to raise brand awareness, it will first need to have an online presence.
A website is one of the easiest ways to create an online presence and increase brand awareness.
And here is how it works.
Online visitors who browse the internet have a chance to land on your website. Once they arrive at your website, they will be able to see what products or services you are offering. Moreover, if they feel that one of your products is just what they need, they might decide to come to your physical store to purchase it.
However, visitors to your website are most likely to buy your products if they can figure out two things:
That’s why it is important to have a clear and concise presentation of your products and stores on your website. Because the easier it is for consumers to find what they are looking for the better the chances are that they will make a purchase.
Consumers who come to your website and do not find what they looking for (despite it being available at your store ) might leave your website in frustration, and this will cost you a sale.
On the other hand, if you properly display your products and stores in a neat and organized way so that the consumer does not have any difficulty figuring out what you sell, then this can lead to a sale. To achieve this goal, you can use a product locator application, such as WP Maps, to add a product locator widget to your website.
A product locator widget is a tool that displays all your products in a neat and organized way on your website so that your customers can easily find what they are looking for. In addition, product locator software, such as WP Maps, can also add a store locator widget on your website. A store locator widget provides your customers with all the information they need to easily and quickly reach your store such as directions, location, address, opening times, etc. Therefore, WP Maps can be seen as a tool that can increase foot traffic for your stores.
The physical store is the main source of revenue in this omni-commerce business model.
For many brands, the majority of sales happen offline. For example, In 2022, physical store sales accounted for 79% of all global sales. This number indicates that physical stores are still the more popular places to shop for consumers.
In this omni-commerce business model, the physical store is a normal store that stocks products and allows customers to purchase these products using cash or cashless payments.
Without the physical store, this omni-commerce business model will not be able to make any money. This is because all the sales take place within the physical store and unlike an e-commerce website, a simple website is not capable of taking orders and generating revenue.
Since the physical store remains in a fixed position (unlike a food truck which can go from one place to another) it has to rely on marketing and advertisement to raise awareness and draw attention to itself. Otherwise, the physical store will have to rely on passersby, and this won’t be enough to bring alot of people to the store.
That’s why the website in this omni-commerce business model is so important. The website is the biggest source of traffic for the physical store. Customers who arrive on the website can be directed to the physical store to make a purchase.
The second omni-commerce business model we will look at involves using a physical store and an e-commerce website to run a business.
In this omni-commerce business model (hereafter referred to as “Model 2”), the main business channels consist of a physical location (store, warehouse, pickup point, etc.) and an e-commerce website.
Let’s take a look at the role that each of these channels plays in this omni-commerce business model.
The website in this omni-commerce business model is a fully functioning e-commerce website.
E-commerce websites have certain features that make it possible for brands to market, sell, and ship products. In addition, you can even upgrade your e-commerce stores using various plugins and addons. For example, you can use the Multi Store Addons for WooCommerce to easily manage multiple stores using features such as:
The main role of the e-commerce website is to provide information to customers and generate revenue. Unlike the website in the previous model, an e-commerce website is capable of providing information, and it is also able to take orders and collect payments.
Once a website has e-commerce functions, it generates sales that are independent of the physical store. Moreover, customers who arrive at the e-commerce website can directly order a product they like and have it delivered to their homes.
Alternatively, a customer can pre-purchase a product and then, if convenient, go to the physical store to pick it up. This is because around 67% of shoppers prefer to purchase online and then collect at the store.
In this omni-commerce business model, the physical store acts as the second source of revenue (unlike the only source of revenue in Model 1).
Customers can walk into the physical store and make a purchase. In addition, the store can also act as a pick-up location for customers who have pre-purchased products from the e-commerce website.
Lastly, the physical store also acts as a “warehouse” where online-ordered products are dispatched to customers.
One question that might be coming to your mind is “Which of these omni-commerce models is better?”
Well, there are several things to consider in each of these omni-commerce business models before you can decide which one is better for you. You may also want to determine the difference between multichannel and omnichannel business models before you decide on an omni-commerce business model.
Since a physical store is a common thing that both omni-commerce business models share, we can assume the physical store does not play a huge part in determining which omni-commerce business model is better.
The main difference between these 2 omni-commerce business models is the websites. One is a simple website and the other is an e-commerce website. Therefore, to determine which omni-commerce business model is better we just need to see what each of these types of websites offers.
Model 1 comes with a simple information-providing website, so it is easier to manage because you won’t have to worry about receiving orders through this website.
Furthermore, a simple website is great if you are looking to do most of the selling at the physical store. This is because the website will be able to direct online visitors to the physical store. As a result, you will most of the paying customers at the physical store.
The main disadvantage of a simple website is that it can not be used to sell products directly to your customer since it (the website) does not have e-commerce capability.
Therefore, if you would like to use an omni-commerce business model that drives business to your physical store, you are better off using model 1.
Model 2 has a fully-fledged e-commerce website that can provide customers with information and also sell products.
The main advantage the e-commerce website has is that it can also act as a source of revenue in this omni-commerce business model
In addition, customers will not be required to come to the physical store to make a purchase. Customers can purchase products using the e-commerce website. Furthermore, it is reported that 2.14 billion people worldwide buy products from online stores.
Another advantage the e-commerce website presents is that it can take the load off the physical store. This means that if the store owner is finding it difficult to manage customers in his/her physical store, the e-commerce website can be used as a means to fulfill orders and meet customer demands.
Based on what we have discussed so far we can conclude the following:
1- Model 1 is better for people who want customers to come to the physical store
2- Model 2 is better for people who prefer to do most of their selling online.
Now the choice is yours to decide which omni-commerce business model is better for your business. Whichever model you decide on, you may want to consider getting some omni-commerce tools to help manage your omni-commerce business.
There are many ways to Improve your omni-commerce business models. You can make small, minor changes that will improve the efficiency of your omni-commerce business, or you can make large, major changes that will make your omni-commerce business model more sophisticated.
One major way to improve your omni-commerce business model is to add more channels.
The more channels you have the more chances you have to engage with customers. Businesses with 3+ channels for marketing saw an increase in order rate by 494%. However, alot of channels can also be very difficult to manage unless you have the proper resources.
Minor improvements you can apply to your existing omni-commerce model to improve efficiency and effectiveness include:
Omni-commerce is the future of commerce. Furthermore, people who don’t know where or how to start with omni-commerce can use the omni-commerce business models mentioned in this article to transition to an omni-commerce business.
The two omni-commerce business models we discussed in this article are the perfect starting point for anyone who is looking to take their brand to the next level.
These omni-commerce business models are versatile, diverse, and cost-effective. Moreover, you can easily expand on these models if you ever decide to make a more sophisticated omni-commerce business model.
If you would like to explore more diverse topics related to e-commerce, please see our blog page.
Waleed Daad Khan is a results-driven Marketing Consultant with a passion for Businesses. He holds certifications From Wharton, McKinsey, Hubspot and SEMrush, and has helped businesses of all sizes improve their online visibility and reach. With 4 years of experience in the field, Waleed stays up-to-date on the latest digital marketing trends to deliver cutting-edge strategies.
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