Communication, advertising, distribution, and sales over several channels instead of just one requires more complex logistics and a greater control effort. If the different channels are not presented in a homogeneous corporate image, this could confuse potential customers and they may not realize that the product and/or service belongs to the same company.
Another disadvantage of a multichannel strategy is that the individual sales channels merely exist side by side, but are not connected in terms of organization and technology. The lack of ability to switch back and forth between favorite channels within the same transaction at will (e.g. with practical click and collect) isn’t so inviting for some consumers and it may cause them to switch to a competitor that offers a more holistic buying experience (see crosschannel and omnichannel marketing below).
Then there is the issue of “cannibalization.” For example, a customer signs a Verizon contract either by telephone, online, or in one of the provider’s branches. In a multichannel strategy, each of these channels operates on its own. In other words, the advisor won’t directly benefit if a potential customer is advised in a store and then signs the contract via the company’s website. This is what’s known as the cannibalization effect: the partial or complete sales shift from one channel to another. Many store owners, for example, worry that customers will move from offline to online shopping. However, this can only be calculated to a limited extent.
A study by GE Capital Retail Bank revealed that 81% of shoppers research online before making a purchase which is known as “ROPO” (research online, purchase offline).