Myths and Realities of Omnichannel Retailing

Many retailers are touting their ability to use their brick-and-mortar locations as warehouses to fulfill customer orders. While this may seem convenient, retailers that are "picking from stores" find that they may incur unplanned shipping costs as online orders are fulfilled. In addition, each store location will need ample floor space for packing and materials as well as store associates who are trained on picking, packing and shipping customer packages — all activities that can place an additional burden on the core store activities. The reality and opportunity of "fulfill from stores" lies in using the strategy as a stopgap while customer distribution centers are built to support high-volume fulfillment at a lower cost and higher service level.