Omnichannel

Omnichannel means selling products through multiple integrated channels, including a brand’s own website, physical retail stores, marketplaces like Amazon, and wholesale partnerships, so that customers can discover and buy the product wherever they prefer. Omnichannel approaches account for 40.4% of all e-commerce sales in 2025, and brands with strong omnichannel strategies retain 89% of their customers compared to 33% for brands that sell through a single channel.

How It Works

What it looks like in practice

An omnichannel brand sells on its own Shopify store, through Sephora or Target shelves, and potentially on Amazon and TikTok Shop simultaneously. The key distinction from simply selling in multiple places is integration: inventory syncs across channels, the customer experience is consistent, and the brand uses data from all channels to inform decisions. A customer might discover the product on TikTok, try it at Sephora, and reorder through the brand’s website, and the brand tracks that entire path.

Why it outperforms single-channel

Omnichannel shoppers spend 4% more in-store and 10% more online than single-channel shoppers. Purchase rates are 250% higher. Campaign order rates are nearly 6x higher (0.83% vs. 0.14%). Companies with strong omnichannel engagement see 9.5% annual revenue growth versus 3.4% for weak omnichannel strategies. The performance gap is not subtle: selling through multiple channels makes every channel work better because each one reinforces the others.

The cost tradeoff

The advantage comes with complexity. Each channel has different margin structures, operational requirements, and customer expectations. DTC delivers 55 to 65% gross margins but requires spending $42+ per beauty customer on acquisition. Wholesale delivers 30 to 50% gross margins but the retailer handles foot traffic. Managing inventory across channels, reconciling different pricing strategies, and maintaining consistent branding requires systems and people that a single-channel brand does not need.

Real Example

Glamnetic started as a pure DTC brand on Shopify in 2019, then expanded to 2,000 retail doors including Ulta and Sephora. Revenue is now split roughly 50/50 between online and retail, which insulates the business from rising digital customer acquisition costs. When iOS 14.5 destroyed Facebook ad targeting and sent DTC-only brands into crisis, Glamnetic’s retail revenue kept the business growing because Sephora shoppers do not depend on Instagram ads to discover products.

Go Deeper

• Scaling a Product Business: The mechanics of growing from DTC to omnichannel, including what breaks along the way.
• DTC (Direct-to-Consumer): Why rising customer acquisition costs are pushing brands toward omnichannel.
• Retail Distribution: How to get into stores, and what retailers expect from brands.

Frequently Asked Questions

What does omnichannel mean?

Omnichannel is a sales and marketing strategy where a brand sells through multiple integrated channels, including its own website, retail stores, marketplaces, and wholesale partnerships. The “omni” prefix means all channels work together as a unified system rather than operating independently. Multichannel ecommerce sales are projected to reach $775.7 billion in 2025, up 15.7% year over year.

What is the difference between omnichannel and multichannel?

Multichannel means selling in multiple places. Omnichannel means those places are integrated: inventory syncs across channels, customer data flows between them, and the brand experience is consistent whether someone shops online, in a store, or through a marketplace. The distinction matters because integrated channels reinforce each other (89% retention) while disconnected channels create friction (33% retention).

Why is omnichannel important for product businesses?

Because single-channel businesses hit growth ceilings. DTC customer acquisition costs have risen 222% in eight years. Pure retail limits a brand’s direct customer relationship. Omnichannel solves both: retail handles customer acquisition (no ad spend needed), while DTC captures the full margin from customers who already know the brand. Glossier’s turnaround was driven entirely by adding Sephora retail to its existing DTC business.

Do all brands need to be omnichannel?

Not at launch, but eventually most product businesses benefit from it. The optimal time to add channels is when DTC customer acquisition costs exceed the margin lost by selling wholesale. BÉIS launched omnichannel from day one and reached $300 million in revenue while staying profitable the entire time. Most brands start DTC, prove the product, then expand to retail.

Sources

• Capital One Shopping, “Omnichannel Statistics,” 2025. Retention rates, revenue growth comparisons, market share data.
• Clerk.io, “Omnichannel Stats 2026,” 2026. Purchase rate and order value comparisons.
• Emarsys, “Omnichannel Retail Statistics,” 2025. Shopper behavior and spending comparisons.