Advancing the marketing‐operations interface in omnichannel retail

Omnichannel retail has experienced enormous growth in the last decade, becoming new normal for many consumer products (McKinsey & Company, 2021). Many retailers have moved from being either pure bricks-and-mortar or online-only to serving customers across channels. For example, traditional such as Walmart and Best Buy opened e-commerce Conversely, online-first vertically integrated brands like Amazon Nike added physical stores their channels (Avery et al., 2012). In contrast multichannel where coexist without any coordination, omnichannel combines expansion into different with coordination integration facilitate seamless customer journeys (Akturk 2018; Bijmolt 2021; Hübner 2016; Rooderkerk Kök, 2019; Verhoef 2015). To integrate channels, adopted fulfillment models “buy online pick up in-store” “ship-from-store.” Channels been (re)designed terms of journeys. illustrate, digital vertical-native brands, Bonobos (men's wear) Warby Parker (eyewear) employ “zero-inventory” showrooms shoppers can inspect a product but not take it home. Such combine strengths within single journey: store inspection, channel convenient fulfillment. aims at facilitating switching between Achieving this requires carefully consider challenges that experience combining given journey. This includes difficulty accessing information store, obtaining reliable whether found is available inspection (Rooderkerk 2019). The friction created traversing customer-journey stage1 two consecutive stages reduced through technology variety solutions (see, e.g., Akturk 2022). Balancing advantages cost seamlessness represents standard operations management (OM) trade-off exercise. Trading off effectiveness efficiency must both marketing perspective: are effective respect measures sales conversion service quality may appear be efficient lead time. set decisions related multiple same journey, aimed balancing superior journey flow during Following Browning (2020) we observe marketing-operations interface manifest several areas, developing managing technologies support retail, development (Gallino Rooderkerk, 2020), on-demand production settings (e.g., 3D printing), leveraging support. Customer behavior emerge key areas focus special issue, building around arise interaction when implementing retail. require involve functions decision-making. Table 1 lists facing concerning specific type fulfillment, well opportunities threats should making these decisions. Same BOPIS, addition: in-store journeys, all activities happen store: orientation, purchase, and—when applicable—return goods. Here, buying desired goods results immediate Pure-online aim mimic while offering home delivery. Pickup points, attended unattended, used curb last-mile costs offer convenience having Returns done by mail, potentially involving prespecified drop-off points. discussion on typically centers notion research shopping (Verhoef 2007), term describing situations which orientation purchase occur (in-store vs. online). (1a) Showrooming refers followed channel, (1b) webrooming (or reverse showrooming) preceded orientation. Both types benefits, opportunities, threats, highlighted first rows 1. Customers engage leverage each ease use, technological support, provision). instance, provides comfort operating home, offers access salesperson assistance sensopathic seeing, hearing, touching) experiences. Purchasing caters instant gratification, purchases associated Depending needs, composes her matching benefits sought decision-making stage best delivering those. opportunity operate zero-inventory showrooms, greatly reducing store-level inventory costs. However, competitive showrooming poses threat after seeing showroom, end competing retailer. brings novel challenges. Optimizing location already complex brick-and-mortar-only considering sociodemographics, presence rivals, availability real estate. increases complexity optimization. opening site cannibalize boost Kumar 2019) raise overall (store + online) demand within-retailer behavior. When showroomers, decide what part assortment show versus keep online. Relatedly, choose feature — using, virtual aisles they sense how substitution works Obvious reasons showcase certain include high margin low return rate item question. Dzyabura al. (2019) shown also makes showroom likely alter original preferences. zero other hand, primary (category sales), could increase long-tail items. central inventorying an warehouse then reduces retailers' considerable arises, challenge clickstream data extract early signals stores. Acting insights, proactively position toward anticipation materializes in-store. further documents seven most prominent applied representing three groups. group involves forward supply chain, including (2a) buy online, in-store, (2b) reserve (2c) ship These relate online-to-offline migration, buy-in-store ship-to-home, opposite path migration (offline-to-online). second focuses chain. (3a) (3b) Finally, third group, consisting of, (4a) ship-to-store (4b) ship-from-store seen models. Ship-to-store pickup delivery purchases. following, will highlight Successful store-inventory accessible real-time Moreno, 2014). retailer dynamically “pure” orders. With limited inventories, rules place balance expected probability settle alternative Some accept orders pickups option cancel them later observed, imposes increasing irritation canceled (Jia Regarding operations, need picking labor using dedicated resources speed time). optimal configuration defined factors (relative) volume demand, its correlation over time traffic conversion. A slight variation model, inventory-allocation reservation make again sales. model compared It cross-selling upselling comparison purchase. relative incurred DC. shipping DC customers. comes returning marketing, objectives aligned minimize handling costs, address imbalances, enable returns positive outcome Retailers made postal mail more cost-efficient process center. At times, want encourage facilitates direct replacements, sale substitutes, selling complimentary performance intended return). Inventory imbalance sellers returns: about returned, thereby citing processing refund. adopt traffic, systems DC, stocked DCs. extent cost-efficiently depends ability consolidate deliveries regular supplies do overly consumers (Wu Chen, Ship-from-store was often evolution became popular pandemic (Sillitoe, very strategy large networks. dense networks, interesting optimization problem deciding item, factoring distance consumer, capacity level age inventory. Section 2 clear understanding mitigating potential barriers offline success context. Ren (2023), paper study effect sharing brick-and-mortar context subject asymmetric assortments. Using housewares, toys, apparel North-American retailer, increased sales, particularly trading area store. They shifted channel. Consumers were observed switch aware local might stock, shift accompanied rate. shows importance jointly aspects initiatives, unveiling (unintended) side-effects: Cross-channel transparency only turns out rates because migrating e-marketplaces Taobao involved use result substantial losses retailers. online-offline platforms received little attention so far. Addressing gap, Fang (2023) compare when, under pressure, provide third-party integration. so-called (i) informational integration, platform “SAME” labels signal identical sellers' sites. called (ii) transactional constitutes (at one third-party's sites) Chinese B2C platform, dampens platform's no significant growth. reveal effects moderated seller's inter-platform function usage. Platforms feel pressure respond seller demands cross-channel reduce cannibalization effectively prioritizing buy-online, pickup-in-store model. Current literature relied heavily analytical modeling portray mechanisms Gao Su, 2017; Wu 2022), quasi-experimental work analyzes expansion-integration introduction Avery 2012; 2023; Gallino 2014; 2023). mainly descriptive sales-centric. Our issue add empirical important topic. presentation suggests ample exist gain advantage improved growing encourages researchers investigate interface. Key include: prove successful proper lakes cut siloes. Facilitating multitude advanced analytics calls better IT capabilities necessary optimize interactions imply functionality interoperability requirements among network partners (Wollenburg 2018). More needed become decisive tools services efficiently Further insights order planning availability) along customers, possible link behavior; impossible identifying mitigation privacy infringement pivotal trust patronage favor (Cheah 2020). thus prefer “opt-in” route, example setting loyalty-card programs consent personal data. Research help identify way target general, question develop start premise respecting rather than afterthought. preferences combined economics actively steer options. Enhanced inventory, capacity, workforce nudging channels) workload, shorten time, availability. Exemplary questions following. How organized planned account varying channel? smooth channels? revenue techniques contribute inventory? Consideration social environmental impacts remains front center demanded vocal legislation.2 domain launched with, Agatz (2021) impact green time-slot choice webshops. understand fast delivery) sustainability longer bundling orders) Furthermore, innovations robot needs analyzed sustainable Related, if CO2 footprint. Other domains certainly deserve attention. Interesting future answer design keeping characteristics information, transaction, own web, call center) authors would thank Nicole DeHoratius joining guest editor issue. addition, associate editors reviewers great service. Co-Editors-in-Chief, Suzanne de Treville Tyson Browning,