When All Commerce Becomes E-Commerce: The Omni-channel Imperative

– By Vaibhav Dabhade, CEO of Anchanto

A decade ago, buying online was a convenience. Today, it’s a given. Whether browsing in-store, ordering via an app, or picking up after an online purchase, every transaction is shaped by e-commerce. The lines between physical and digital retail are no longer just blurring—they’ve disappeared. What we call “commerce” today is, by default, is e-commerce. 

Yet, despite e-commerce’s explosive growth, its trajectory hasn’t followed the early predictions. Predictions about its trajectory have been numerous, but two widely accepted assumptions—first, that e-commerce would completely overtake retail, and second, that direct-to-consumer (D2C) would become the dominant model—have proven flawed. Understanding these missteps is crucial for brands navigating the omnichannel future. 

Prediction 1: E-Commerce Will Overtake Retail – A Myth Debunked 

Despite e-commerce growing 350% over the past decade, retail remains the dominant force, accounting for nearly 80% of total global sales. Even during the pandemic-driven boom of 2020, where online sales surged 27.6%, traditional retail rebounded post-2022, proving its resilience. 

And as is visible today, physical retail has not disappeared but evolved. While digital-first models gained ground, brick-and-mortar stores have transformed into experience hubs and omni-channel enablers. Consumers today expect a seamless transition between online and offline channels, with 73% of shoppers utilizing a mix of in-store and digital touchpoints. 

The businesses that successfully integrated e-commerce with physical retail emerged stronger. They recognized that rather than existing in opposition, retail and e-commerce are complementary. Many retailers have leveraged their stores not just for product display but also as fulfilment centers, customer engagement spaces, and service hubs. 

The pandemic highlighted the importance of adaptability. Brands that pivoted quickly—enhancing their digital presence while strengthening their retail infrastructure—thrived. This interplay between digital and physical commerce is now the new norm, reinforcing that omnichannel strategies drive sustainable success. 

Prediction 2: D2C Is the Future of E-Commerce – A Misstep 

D2C was once seen as the holy grail of e-commerce, offering brands greater control and higher margins. However, the reality is more nuanced—D2C is an important strategy but not a standalone solution, especially at scale. 

Nike’s D2C Shift: A Cautionary Tale 

Nike aggressively pursued a D2C-first model, leading to impressive initial gains. The brand saw 20% YoY growth in direct sales and achieved $5.3 billion in quarterly D2C revenue by FY2023. The ability to own customer relationships, leverage first-party data, and offer personalized experiences strengthened its brand engagement. However, cracks soon emerged in this approach. 

By prioritizing D2C, Nike reduced its reliance on wholesale partners, leading to weaker shelf presence in key markets. The move also alienated price-sensitive customers, many of whom turned to competitors offering similar products at lower costs. While D2C drove early momentum, it soon reached a saturation point, and sustaining long-term growth became a challenge. 

Additionally, the cost of acquiring and retaining customers through digital channels skyrocketed. Performance marketing expenses surged, putting pressure on profitability. Without a strong omnichannel strategy to balance its retail, marketplace, and direct channels, Nike struggled to scale effectively in global markets. 

L’Oréal’s Balanced Approach: Omnichannel Wins 

In contrast, L’Oréal embraced an omnichannel model, integrating D2C with retail and marketplaces to drive sustainable growth. Instead of over-relying on a single channel, the brand optimized its presence across multiple touchpoints, resulting in €11.2 billion in e-commerce revenue, accounting for 27% of its total sales. 

L’Oréal’s strategy revolved around strong system integration. By synchronizing inventory in real-time and ensuring seamless order management, the company maintained a consistent shopping experience across platforms. The brand leveraged marketplaces to expand reach while also strengthening regulatory compliance and financial control—key elements often overlooked in a pure D2C model. 

This omnichannel flexibility allowed L’Oréal to maintain strong retail partnerships while scaling its e-commerce footprint efficiently. Unlike Nike’s D2C-heavy approach, L’Oréal’s balanced model provided resilience against market shifts and changing consumer behaviours. 

The Omnichannel Imperative 

Commerce today demands resilience and agility. Businesses must prioritize seamless multi-channel execution, logistics excellence, and integrated customer engagement to remain competitive. 

But, managing multiple sales channels comes with complexities, from inventory visibility to content management, pricing synchronization, and cross-border operations. Without robust backend systems, brands struggle to maintain efficiency and responsiveness across digital and physical platforms. 

Logistics and fulfillment pose their own additional challenges. Warehousing, supply chain coordination, and omnichannel shipping require precision to meet customer expectations. Delays, stockouts, or inefficient fulfillment processes can damage both revenue and brand reputation. 

Businesses that fail to upgrade their technological infrastructure face difficulties in responding to new market trends, integrating new sales channels, and optimizing operational costs. A modern, adaptable backend is critical to ensuring a seamless omnichannel experience. 

Conclusion: The Future Is Omnichannel 

The next decade won’t be about e-commerce replacing retail but about their convergence into a unified experience. Brands that prioritize operational agility, technology integration, and omnichannel excellence will lead the way. 

By embracing hybrid models and investing in robust back-end infrastructure, businesses can build sustainable, scalable, and future-proof commerce strategies.

Data captured from following sources: eMarketer, Statista, PwC, Mckinsey, Nike, Bloomberg.