An examination of the effects of omni-channel service offerings on retailer performance

Abstract

Purpose

Both online and brick and mortar retailers have invested heavily in developing omni-channel service offerings. Though seen as a competitive necessity, these omni-channel service offerings increase costs and complexities. The purpose of this study is to examine the effects of strategies involving bundles of omni-channel services related to order fulfillment and returns management on retailer performance.

Design/methodology/approach

Archival data were obtained for 152 retailers and analyzed using ordinary least squares regression. Robustness tests using an alternative dependent variable and a model-based classification strategy corroborate our findings.

Findings

Retailers offering full sets of high integration omni-channel services (buy online pick up in store, ship from store and in-store returns) have better performance (e.g. sales, growth and competitive position) and web sales than retailers that offer only a partial mix of these high integration services. Retailers offering a partial bundle of high integration services, in turn, have better performance and web sales than retailers that offer none of these services.

Originality/value

The research extends work that has examined the performance effects of omni-channel services on individual retailers. Our results indicate retailers benefit the most when offering a full set of high integration omni-channel services, suggesting retailers who have only adopted a subset of these services could improve performance through broader adoption of services. The results further indicate partial adoption of high integration services is better than no adoption.

Citation

Jones, A.L., Miller, J.W., Griffis, S.E., Whipple, J.M. and Voorhees, C.M. (2022), "An examination of the effects of omni-channel service offerings on retailer performance", International Journal of Physical Distribution & Logistics Management, Vol. 52 No. 2, pp. 150-169. https://doi.org/10.1108/IJPDLM-06-2020-0175