This post was originally published in July 2017 and has since been updated for currency and readability.

What may have started as a straightforward ecommerce site or maybe just an experiment in taking your retail store online has grown—a lot.

It’s every founder’s dream.

But high-volume growth can be a logistical nightmare. You now face the challenges of managing products across channels, aligning inventory and delivery, coordinating with suppliers, manufacturers, and third-party logistics (3PL), as well as connecting in-store purchases and pickups with online orders and even international demands.

Every success presents unique obstacles, and all of them cry out to be solved.

It’s time to figure out those solutions.

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What is omnichannel logistics?

Accenture’s COVID-19 Consumer Pulse Research recently discovered not only how interconnected and seamless consumers now want their shopping experience to be:

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78% of shoppers plan on using curbside pickup/click and collect
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76% of shoppers plan on using a virtual consultation for personal styling
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And 80% of shoppers have done their shopping on social media platforms
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In addition, customers expect a product to arrive as soon as possible and also want the freedom to try it either in-store or at home.

Serving this always-connected consumer may look like the following:

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A potential customer sees an advertisement for jeans on their smartphone traveling home from work.
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At home, they use their desktop to Google your brand.
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Once on site, they decide to buy a pair but schedules a virtual consultation with a stylilst first.
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During the consultation, the consultant also recommends a few shirts to match.
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The customer asks a few questions about fit and likes the jeans and two of the shirts.
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Unfortunately, their shirt sizes are out of stock.
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But instead of losing the additional sale, the clerk places an order online for the right sized shirts to be delivered to the customer's home.
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The shirts arrive within a day, and the buyer is delighted.
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That process is now becoming standard and allows you to tailor how a product is experienced, purchased, and delivered. By optimizing the locations, sourcing, and fulfillment of your products,

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Omnichannel logistics ensure reduced costs, faster delivery, and a better customer experience.
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When we discuss omnichannel logistics at Sourcify, we ensure we have the following bases covered:

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An online purchase sent directly to a consumer (inventory visibility)
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An online order sent for in-store pick up (channel specific process)
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Cross channel fulfillment options (speed of delivery)
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Reverse each scenario whenever a product is returned (ease of return)
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When your customer moves across channels, a traditional multichannel approach to logistics can come up short in regards to the information availability, delivery speed, and personalized experience that modern shoppers expect.

Moreover, optimizing each channel individually breeds competition between them.

For example, products fulfilled by FBA often move faster than your own warehouse or 3PL. This can create variations in your customer experience, product information, pricing, and service levels.

For an ecommerce brand, omnichannel logistics will help you improve efficiency, cut shipping times and costs, and enable you to manage your inventory across channels and fulfillment centers. This all adds up to a seamless experience across consumer touchpoints to simultaneously create both a diverse product flow as well as a consistently positive purchase.

To do this, four challenges present themselves:

Challenge 1: Inventory visibility

Knowing the status of your inventory is at the core of a strong omnichannel approach.

In a traditional model, you will dedicate inventory by channel and have little to no cross-channel inventory visibility.

The last thing you want is to promise next-day delivery to your customers and not be able to follow through. This is a challenge for a retailer that sells across channels, especially during peak holiday seasons.

To address this challenge, develop an efficient order fulfillment process that works via an optimized warehouse management system. By using inventory visibility as a forecaster of future demand, you can plan your supply chain activities accordingly.

Once you scale out your inventory visibility, you may get to the point where you can sell orders online without ever taking physical possession of your product.

Your ecommerce and order management systems will be synced up in a way where an order through your Shopify store will trigger your closest omni-channel distribution center, and fulfillment will be carried out by your outsourced or in-house party responsible for that channel.

By setting up a measure for inventory visibility, your store will be more capable of having a smooth customer experience while staying on top of its supply chain.

Learn more: Get omnichannel marketing ideas to connect with customers—without being creepy.

Challenge 2: Channel-Specific processes

The next flaw businesses fall victim to is focusing on channels independently. Your supply chain needs to be integrated across your own Shopify store, retailers, and other online sales channels like Amazon.

Though in some cases you will have to adhere to distribution guidelines set by FBA, you can still implement a system that integrates these channels.

This will ensure you make the most of your channel-specific warehouses and have a dynamic outlook towards space allocation.

Implementing an omnichannel process will also enable you to use spaces variably. Warehouses can act as showrooms. Ikea, for example, uses this model for a highly cost-efficient supply chain.

Challenge 3: Speed of delivery

One of the hardest parts of selling across channels is ensuring speedy delivery. When a customer buys online, they expect that order to come within a few days—at most.

In addition to creating clear expectations for each channel, using physical stores as fulfillment centers is a must. In fact, given the rising desire among customers, stores should serve as both pickup locations for online orders—buy online, pick up in-store—and fulfillment locations for deliveries (ship-from-store).

\"BOPIS — \n
Image from Digital Commerce 360
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Allowing customers to buy online and pick up in-store saves both the customer and the company money. Also, when a customer is picking up an order, they often make additional purchases.

As an example, Walmart announced plans to let its employees fulfill local orders by paying employees extra to deliver online orders headed to destinations along their normal route home.

That said, most retail stores are not set up to fulfill orders and most lack good inventory visibility. Their backroom space is limited, and store employees are trained to sell, not fulfill orders.

Challenge 4: Ease of return

Handling the return of orders should be a crucial consideration when setting up your omnichannel logistics system. If you truly want to be integrated across platforms, you should aim to enable returns from different platforms as well.

If a customer purchases one of your products online, can they return it to a retail location? Customers need to feel like they have the ease of returning their purchases or your conversion rates will suffer.

The implementation of a sound reverse logistics system will be imperative to good customer service within your omnichannel strategy.

Though these challenges are big, your return on investment will greatly outweigh these initial problems.

Omnichannel logistics in action

When Ryan and Andrew Beltran launched Original Grain on Kickstarter, they had their goals set high. In their first crowdfunding campaign, they raised nearly $400,000 and realized firsthand that their logistics and supply chain would be the backbone of their company.

Fast forward four years, Original Grain has hit the eight-figure sales mark while selling across various channels like brick-and-mortar retail, Amazon, and their own Shopify store.

They took an omnichannel logistics and supply chain approach early on and, as a result, have earned five-star reviews across channels.

Their Amazon store provides free same-day shipping through FBA. On Shopify, they detail their shipping process on a designated shipping page. These two channels are intertwined on their backend to easily keep track of inventory levels.

When shipping from their Shopify store, they work with a third-party logistics partner who batches shipments within a one or two day period. This enables them to optimize the actual fulfillment process by shipping similar products at the same time.

Learn more: What Is Logistics Management?

A bird’s eye view of omnichannel logistics

The key to implementing an omnichannel logistics strategy in your company is to focus on the customer journey.

Amazing interactions at every touchpoint will ensure a smooth process and—in today’s review-based ecommerce space—maintaining a stellar reputation can’t be underestimated.

Your approach should align with your shoppers.

Implementing an omnichannel logistics and supply chain system may seem complex, yet by mapping it out around your customer journeys, you’ll be able to create a seamless process.

Omni Channel Supply Chain FAQ

What does “omnichannel in supply chain” mean ?

Omnichannel in supply chain is a term used to describe a strategy in which companies use a combination of channels and technologies to provide customers with a unified shopping experience. This includes the use of both physical and digital channels with a focus on delivering a seamless customer journey across all channels and devices. Omnichannel supply chain strategies aim to create a unified experience for customers, allowing them to shop online, in-store, or via mobile with ease.

What is an example of omnichannel retailing?

An example of an omnichannel approach is a retailer offering customers the ability to shop both in-store and online, with a seamless experience across both channels. For example, a customer might look at products online, then go to the store to try them on and make a purchase, or buy online and pick up in-store. The same loyalty program and payment methods would be available across both channels, making it easier for customers to switch between the two.

What are the benefits of omnichannel logistics?

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Improved Customer Experience: Omnichannel logistics allows customers to shop from any channel, be it in store, online or through a mobile app, and receive a consistent brand experience. This makes it easier for customers to switch between channels and find the product they’re looking for.
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Increased Reach: Omnichannel logistics allows retailers to reach more customers by making it easier for them to shop from multiple channels. This opens up more opportunities to increase sales and expand markets.
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Enhanced Fulfillment Options: Omnichannel logistics offers a variety of fulfillment options, such as same-day delivery and in-store pickup. Customers can choose the option that best suits them and receive their orders quickly.
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Higher Inventory Visibility: Omnichannel logistics helps retailers to have a better understanding of their inventory and stock levels. This helps them to better manage their inventory and ensure they have the right amount of stock in the right place at the right time.
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Improved Supply Chain Efficiency: Omnichannel logistics helps retailers to streamline their supply chain and reduce costs by eliminating the need for multiple warehouses, increasing the speed of delivery, and reducing the cost of returns.
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What is the difference between omni channel and multi channel logistics?

Omni-channel logistics is a unified approach to supply chain management that creates a seamless end-to-end experience for customers across all channels. It seeks to integrate all customer touchpoints into a single, unified system, enabling customers to have a consistent experience whether they are shopping online, in-store, or through a mobile device.

Multi-channel logistics is a more traditional form of supply chain management that focuses on optimizing the flow of goods through multiple channels. It seeks to improve efficiency and reduce costs through better coordination of inventory and distribution across a variety of channels. It is often used in retail, where different channels such as brick-and-mortar stores, online stores, and mobile platforms each require their own unique logistical strategies.

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High-volume growth can be a logistical nightmare—but it doesn't have to be.

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The future of commerce is powered by brands building the world’s most creative customer experiences, backed by the development teams that make those experiences possible using Shopify’s commerce platform.

At this year’s Unite, Shopify’s annual partner and developer conference, we introduced the largest set of infrastructure innovations in Shopify’s history, opening up a whole new world of customization for brands.

Businesses seeking the best experience for their customers will no longer be blocked by technical constraints—we’ve unlocked more developer capabilities than ever to build the future of commerce for merchants.

Here are the products and tools coming later this year to help you unlock your creativity with customizations, build for conversions, and scale with confidence.

Have an in-house developer team or outsource development to an agency? Share these technical announcements with them.

1. Unlock creativity with customizations

Online Store 2.0

At Shopify Unite, we announced one of the biggest updates to our online store platform to date: Online Store 2.0—a combination of new features and improvements that significantly expand our existing customization options.

Once your development team migrates your theme to Online Store 2.0, it will be easier to control the layout and aesthetic of your store, giving you access to more data with revamped metafields and arming your development team with a streamlined set of developer tools that integrate seamlessly with Shopify.

Customize your online store with sections and blocks on every page

With sections and blocks, effortlessly personalize your store by adding, rearranging, and removing content without editing code.

Drag and drop entire sections of video, products, or image galleries in the theme editor. Sections can be used on the home, landing, product, and collection pages to gain greater control and flexibility over your online store.

Blocks are like sections within sections, and they can be moved around or within sections, allowing for a more granular level of flexibility for businesses to create the store that best represents their brand.

Brands selling on Shopify Plus need only work with a theme developer to update themes to OS 2.0 standards before being able to see these improvements.

See how your development team or agency can implement these changes with JSON templates

Display flexible store content

Data and content is what brings your store to life, and we’ve made big updates to how they're both stored in Shopify. Once configured by developers, you’ll now be able to define and edit metafields directly in the admin, and connect metafields to apps or your theme that can be accessed by anyone on your team. This will significantly increase flexibility to capture and represent data specific to your brand.

You can now display and edit product and variant content directly from the admin in a few clicks. That means if you want to store additional product information in your shop, you can use metafields to display those values across your entire website.

For example, you can use metafields to display fabric care instructions or even to show special fields in the checkout page like delivery timeframes, backorder dates, and units sold.

Plus, simple product and variant configuration—like specifying which sizing chart is for which product—can be done by any staff member right on the product page.

Again, if you’re selling on Shopify Plus, all it takes is working with a theme developer to update your themes and apps to OS 2.0 standards to see these improvements.

See how your development team or agency can implement these changes with JSON templates

Integrate app blocks inside themes

More customization and flexibility around apps in the theme editor means added performance benefits: once set up by developers, you can integrate apps easily into themes.

App blocks mean you can easily integrate an app into your theme without touching code and manage that app right from the theme editor. When it’s time for you to uninstall the app, you can remove it without worrying about performance issues left behind from ghost code. Stay tuned for this feature later this year.

Accelerate theme development with intuitive developer tools

Brands can make advanced customizations more efficiently than ever, using our new suite of development tools. Merchants with in-house developers can now build better together in teams.

With the introduction of the Shopify GitHub integration, an updated Shopify CLI tool, and Theme Check, your development team can more easily develop, test, and deploy themes on Shopify.

Our GitHub integration allows you and your team to collaborate safely with native support for version control. You can implement workflows where changes must be reviewed and merged on GitHub before populating to a live theme. This integration also lets you share preview links from your team’s local server without manual syncing or pushing zipped files, meaning easier collaboration with your development team.

Learn more about developer tooling

We’re also introducing our first open-source reference theme, built to run 35% faster than our most popular theme and using all the new features in Online Store 2.0.

Introducing Dawn, an ultra-lightweight, mobile-first theme—maximizing flexibility while minimizing complexity and keeping things lean. Your development team can use Dawn as a model when unlocking sections on your own themes.

Learn more about Dawn

2. Build for conversions

Customize checkout with apps built from checkout extensions

It’s about to become so much easier to customize your checkout with apps built from checkout extensions. These can range from simple custom messages and marketing content, all the way through to more complex UI customizations like capturing additional information from buyers, product upsells, and loyalty point redemptions. These apps will be fast to install, and upgrade-safe, so you’ll get all platform benefits as we release new features. Plus, they’ll work with Shop Pay and other accelerated payment methods.

The post-purchase checkout extension is available now in public beta, enabling developers to build apps that surface offers or content to your buyers right after they’ve completed their checkout, but before they’ve arrived at the thank you page. Look out for other checkout extensions coming soon.

Learn more about Checkout Extensions

Give shoppers more shipping options with Shopify Scripts

Shopify Scripts is a Shopify Plus exclusive feature that allows brands to do things like customize payment or shipping options in checkout.

Forty percent of shoppers selected curbside pickup for online purchases in the first three months of the pandemic, and 38% plan to continue to use it going forward.

Now you can customize which shipping methods appear to each customer with Shopify Scripts, via an app. That means you could offer a curbside pickup option that only displays to customers that live within 10 miles of your location, for example.

Scripts can now be built using your preferred local development workflow instead of having to use the online Script Editor. Our rebuilt infrastructure also means that Scripts will be even more reliable and run much faster.

Plus, Scripts will now be deployed and installed using apps, which means brands can use them without ever touching code, and they can be installed on multiple stores at once if you work at a company with multiple sub-brands.

Join the Shopify Scripts beta

Give shoppers more payment options with our Payments Platform

Consumers will abandon online purchases at the slightest hint of friction—like if their preferred payment method or channel isn’t available.

Shoppers have a diverse set of expectations of payments: for example, although credit cards are the most popular payment method in the U.S., that isn’t true of the rest of the world. 52% of online shoppers in Brazil will use a QR code to make a purchase.

The right payment method can help you increase checkout conversions by delivering better ecommerce localization and a tailored buyer experience, no matter where your buyers are located.

Shopify’s Payments Platform will unlock future opportunities for growth in new markets and industries by enabling payment providers to build new integrations into Shopify. This opens up a broader ecosystem of gateways offering niche functionality and brings new business value to merchants by helping them sell more, and in more places.

Learn more about our payment options

Increase average order value with buy now, pay later

You can boost your conversions by up to 50% and increase average order value when you give customers greater flexibility to check out with larger cart sizes.

That’s where Shop Pay Installments* comes in. Let your shoppers buy now, pay later and split their purchases into four interest-free payments, with 0% interest and no additional, hidden, or late fees. Currently available on orders of $50–$1,000, including taxes and shipping.

Learn more about Shop Pay Installments

3. Scale with confidence

Crush your next flash sale or product drop

Shopify Scripts can scale to handle traffic from the largest merchants and flash sellers in the world. The most complex Scripts code will now execute in under five milliseconds, letting you power unique brand experiences during your biggest sales events.

Any shop, at any minute, will be able to support the same amount of traffic that we had across all of Shopify at our peak of BFCM 2020—tens of thousands of checkouts per minute.

Build custom buyer experiences the world has never seen before

Shopify will support every stage of your business as your technical maturity, resources, and complexity grow. Create unique buyer experiences that make your brand stand out with the tech stack (including a headless architecture) and business logic you want.

Build custom storefronts using Shopify’s Storefront API, which will now unlock even more commerce capabilities like international pricing for your global shoppers, curbside pickup, and subscription selling plans. Create non-Liquid custom storefronts on Shopify with the developer frameworks and tech stack you already use so your brand can turn any screen into a shopping channel—from web pages and mobile apps to smart mirrors and wearables.

We previewed Hydrogen, a React framework that tackles the complexity of building a custom storefront so you can build faster and have more time to focus on styling and designing the features that make your brand unique. With this, you also get Oxygen, a way to host Hydrogen storefronts directly on Shopify that is fast, global, and optimized for commerce.

It’s still early days for Hydrogen. Shopify’s product team is heads down building these new products and we encourage you to sign up for updates as they evolve.

Sign up for updates on Hydrogen

Seamlessly optimize your local pickup experience

If you manage inventory across multiple locations, you know how challenging fulfillment can be. Business owners on Shopify can now level up their local pickup experience by designating pickup-only locations.

Avoid time-consuming and costly errors by letting customers pick up their order from your designated pickup-only locations, without having to ship online orders out of that location. Inventory at these pickup-only retail locations will not be included as “available” for online shipping orders.

For example, if your warehouse is out of stock on size 10 shoes but one of your pick-up only retail locations has stock, the shoes will be treated as in stock and available for pickup, but not for shipping.

\"Local\" — A South-Asian shopper is picking up an online order from a clerk.

Set up your first pickup-only location

Start selling wholesale

Get your products in front of a brand new audience when you start selling wholesale with Handshake*, a wholesale marketplace built by Shopify. All products on Handshake come from Shopify-powered brands, which can sign up, set their prices, and publish their catalogs from inside their Shopify admin.

Unlike other marketplaces, there are no fees or commissions to sign up or for orders on Handshake. If you have existing wholesale relationships, Handshake gives you a way to move those transactions to Shopify.

All suppliers go through an application process and are approved by Shopify, and all buyers must confirm they have a reseller ID.

Apply to sell on Handshake

Source new products to sell

Retailers, online curators, and brick-and-mortar store owners can use Handshake to bolster their offering with unique products from independent, Shopify-powered brands.

Plus, Handshake’s personalized product recommendations ensure that members are constantly discovering new products.

Stock your store with on-trend items that customers will love. All brands on Handshake are handpicked, so you know you’re shopping from distinctive makers from across the United States.

Find new products to sell on Handshake

Experience creative commerce that converts

The announcements from Shopify Unite 2021 highlight our investments in customizability, conversions, and scale for Shopify Plus merchants—the ones joining us in Shopify’s mission for better commerce and more entrepreneurship globally.

Join us, and experience creative commerce that converts.

Get a more technical point of view to share with your development team or agency

* Features currently available in the US only.

","We introduced the largest set of infrastructure innovations in Shopify’s history. Here are the updates.","

We introduced the largest set of infrastructure innovations in Shopify’s history. Here are the updates.

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Hailey is a senior content marketing manager at Shopify, where she spends her days studying merchants and creating content to help brands make better business decisions.

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