From Single Channel to Multichannel: Transitioning Your Ecommerce Brand with a Multichannel Operating System
Your Shopify store is finally picking up traction and sales are steadily increasing.
You’re looking to start scaling your business and expand to Amazon, Walmart, TikTok Shop or another marketplace. The first new channel might seem relatively simple, but things get much more complicated when orders, inventory and fulfillment have to work across multiple channels.
As the complexity of your business grows, the support system you rely on to manage all the moving parts needs to become more sophisticated and centralized. With the right multichannel operating system, you can continue to expand to multiple marketplaces, without creating additional manual work.
In this blog post, we’ll cover how to successfully scale up your business by transitioning your ecommerce brand to a multichannel operating system.
The Roadmap for Transitioning from Single Channel to Multichannel
Know when your single-channel setup has reached its limits
Your initial setup worked when your store was small, but as your business expands it will inevitably outgrow the way you did things in the beginning.
Pay attention to the warning signs that your single-channel setup is reaching its limits and can no longer handle the stress placed on it, such as:
You find yourself overwhelmed with manually entering and exporting orders.
Inventory counts need to be updated in several places.
You’re checking multiple dashboards throughout the day.
Your team is using spreadsheets to try to reconcile orders or stock.
Stockouts or overselling are becoming more common.
These are all indications that your current system isn’t going to be able to handle the increased demands you’re expecting of it. You don’t need to wait until things are completely broken. If every new channel adds another layer of manual work, your current system probably isn’t built for where your bu
Build your multichannel operating system around one source of truth
Before you expand your ecommerce business aggressively, it’s crucial for your brand to have a central operational core.
This means all areas of your business are centralized in one place:
Orders: Orders from each channel flow into one system.
Inventory: Stock levels stay synchronized across channels.
Products/SKUs: Product information and SKU mappings remain consistent.
Fulfillment: Orders can be routed through the appropriate warehouse or fulfillment workflow.
Shipping: Tracking information flows back to the appropriate sales channel.
Returns: Returns can be managed within the same operational workflow.
This is where a multichannel ecommerce platform like Goflow comes in. It allows you to set up one central dashboard where you can see all of the above, from orders to inventory to fulfillment, shipping and returns. Everything is all in one place, making it easier than ever to manage your ecommerce business as you expand from single channel to multichannel.
Connect your sales channels before you scale them
When you start the process of scaling up your business and expanding across multiple channels, there are steps you can take to make sure everything is connected and running smoothly. Let’s take a look at the process.
Step 1: Audit your current setup
Take a close look at your current setup and get a clear picture of what’s working, what isn’t and what you’re dealing with. During this audit process, ask yourself:
What platforms do you use?
Where does product data live?
How is inventory updated?
How are orders received and fulfilled?
Which processes are still manual?
Step 2: Choose the next channel based on your customers
Growing your business strategically means thinking about which channels you’re expanding to and why, not just choosing them because they are available.
The key is to consider where your target customers already shop and whether the channel is a good fit for your products.
Step 3: Connect the channel to your central system
Whenever you add another channel, you want to avoid creating a completely different standalone workflow. If every new channel you add makes your business operations more complicated, scaling to multiple channels will quickly become unsustainable.
Instead, the key is to connect every channel to your central system, so that so that orders and inventory move automatically between the channel and your operating system.
Step 4: Test before going live
Once you have your channels connected to your central multichannel operating system, it’s important to test everything before going live to make sure it’s all set up correctly.
Take the time to verify that everything’s running smoothly, including:
Product mappings
Inventory syncing
Order routing
Shipping
Cancellation/Returns
You may want to start with a manageable number of SKUs in the beginning, and ramp up capacity once you’re sure that the system is connected properly.
Get your inventory management ready for multiple channels
Getting inventory management right is one of the most important aspects of a successful multichannel expansion. Let’s look at what you need to consider while getting your inventory management ready for multichannel expansion.
Real-time inventory synchronization
If you’re still using a system where every channel gets its own inventory count, this can cause a lot of problems.
Real-time inventory synchronization is the only way to make sure that all of your product stock levels are up-to-date at any given moment. If stock levels are only updated at scheduled intervals, this can lead to discrepancies, delays and inaccuracies. With a perpetual inventory system, stock levels are updated instantly as transactions occur.
This will help you to avoid overselling when the same stock is available on several channels. For example, you have 100 units in stock. Amazon sells 20, Shopify sells 15, and Walmart sells 10. If each channel thinks it has still access to the original 100 units, you’re at risk of overselling if more orders come in. Real-time inventory synchronisation helps you avoid having three different versions of the truth.
Inventory buffers
Another helpful strategy for managing your stock is inventory buffers.
An inventory buffer (also known as safety stock or contingency stock) is when you keep extra stock on hand as a cushion to prevent shortages and delays in the fulfillment process.
It’s a tricky balance to achieve, because having too much spare inventory in storage can quickly cut into profit margins and increase holding costs. The amount of buffer inventory you decide to store can be based on the type of products you sell, average production lead times and historical inventory and order trends.
SKU consistency across marketplaces
Making sure you have SKU (Stock Keeping Unit) consistency across marketplaces will help you to keep your inventory accurate, prevent overselling, synchronize pricing strategies, and streamline automated order fulfillment.
Using the exact same SKU identifier on every channel will help to make sure your software tools recognize identify products, so you can prevent costly fulfillment errors and mismatched data.
Multiple warehouses
Having inventory in multiple warehouse locations brings in even more complexity. If you’re managing your stock across multiple warehouses or fulfillment locations, you’ll also need to be strategic about how you manage it.
If you are handling stock across multiple warehouses, you’ll want to check out our guide to simplifying and optimizing your multi-warehouse inventory management and running your business more smoothly: Multiple Warehouses? No Problem. Here’s What You Need to Know.
Automate the repetitive work before it becomes a bottleneck
Automation is the solution to adding more channels without piling on excessive manual tasks. With automation, you can absorb complexity as you grow, rather than forcing your team to take on more manual tasks.
For example, you can automate a lot of things such as:
Importing orders
Updating inventory
Routing orders
Generating shipping labels
Sending tracking information back to marketplaces
Order status updates
Automating your inventory management can save you a lot of time, help you simplify your operations and keep your stock levels optimized across all channels. To learn more about how to make this work, take a look at our guide: Work Smarter, Not Harder: The Power of Automation for Inventory Management.
Track performance across channels, not just sales
If you’re tracking just your sales data, it’s not enough. Once your business has expanded to multiple marketplaces, channel-by-channel sales numbers don’t tell the full story. A channel can be generating significant revenue, while creating disproportionate operational costs.
Instead, you need to go beyond sales data to track a number of important KPIs across your business.
For example, you can keep an eye on:
Sales by channel
Order volume
Inventory turnover
Stockouts/overselling
Fulfillment time
Shipping costs
Returns
Profitability by channel
The more you get to know the unique challenges your business faces, the more specific you’ll be able to get about which KPIs you should be paying attention to. To help you out, we wrote this useful guide: How to Choose Which KPIs to Track: A Step-by-Step Guide for Ecommerce Sellers.
Expand one channel at a time
There’s no need to expand to multiple channels simultaneously and completely overhaul your business all at once, causing yourself potential stress and overwhelm. Instead, take things one step at a time to keep the transition manageable and give your team a repeatable process for future expansion.
That might look like this:
Stabilize your existing operation
Choose one new channel
Connect it to your central system
Test the workflows
Monitor performance
Fix issues
Then expand again
Build the infrastructure before you need it
Expanding from single channel to multichannel should make your business more resilient, rather than creating a maze of disconnected systems.
A scattered setup is a lot harder to fix after you’ve expanded, so the key is to make sure your systems are ready to handle the complexity before you scale. The earlier you centralize orders, inventory, fulfillment, and shipping workflows, the easier it becomes to add channels.
A multichannel operating system gives your team one place to manage the complexity behind the storefronts your customers see. It’s the secret to transitioning your ecommerce brand from single channel to multichannel successfully.
Book a demo to see how Goflow helps ecommerce sellers manage orders, inventory, and fulfillment across multiple sales channels from one platform.