Let’s see what the cost business model of omni-channel looks like, when you mix physical stores and e-commerce:
- your average physical store typically adopts a fixed-cost business model, where “fixed” means that there is no strong, direct relationship between costs and revenues; in other words, your brick and mortar store costs you X$ (for real-estate, logistics, personnel, etc.), and X doesn’t change significantly if you sell hundreds of items every day or if you sell ten times as much
- your e-commerce is far less capital-intensive and basically employs – above certain volumes – a variable-cost business model: the more you sell (…accept orders, process them, pick-pack-&-ship…), the more it costs
When you go omni-channel, you sell the same stuff, but using a mix-and-match of radically different cost business models:
Is this a problem?
Basically it’s not, but it can become a big one if you don’t fully understand what your cost-behavior is.