Unified commerce: definition, advantages and implementation with Shopify

At a time when consumers interact with brands via numerous channels, it is no longer enough to simply be present online. The modern customer experience demands flexibility and seamless transitions between digital and physical touchpoints. Unified commerce offers exactly that by bringing all sales channels together in a single system.

But what exactly is unified commerce and how does it differ from the familiar omnichannel approach? In this blog post, we explain the differences to omnichannel and how you can implement it in your store with Shopify.

Unified commerce definition: What is unified commerce?

In general, the term “unified commerce” stems from the process of digital transformation in retail and the increasing networking of different sales channels. Over time, traditional retail concepts such as multichannel and omnichannel have been replaced by this concept. By definition, unified commerce is a response to changing customer behaviour and the expectation of a consistent, personalized shopping experience, regardless of the chosen channel or device.

Overall, unified commerce describes an approach in which all of a company's sales channels - whether online, in stationary retail or via mobile devices - are brought together in a single central system. In contrast to the omnichannel model, in which the various channels are often operated separately, unified commerce enables complete integration of all systems and processes. This means that customer data, inventories, orders and transactions are synchronized in real time. This creates a seamless shopping experience for your customers, regardless of whether they are shopping in the online store, via an app or directly in a store.

The biggest advantage of unified commerce is that you have access to all relevant data at all times and can meet your customers exactly where they are. While omnichannel vs. unified commerce is often compared, unified commerce represents the next “evolutionary step”, so to speak, as it breaks down barriers between sales channels, creating a more consistent, personalized customer experience. This not only leads to a better customer experience strategy, but also provides you as a retailer with a more comprehensive overview of customer behavior and your company's performance.

By definition, a unified commerce platform brings together the following channels, among others:

• Stationary retail stores

• E-commerce (web store, marketplaces, social media)

• Customer service

• PIM (product information management)

How does unified commerce work?

Unified commerce works by unifying all of a company's sales channels and systems such as online stores, physical stores, mobile apps, inventory and customer data. But what are the key factors?

Central platform for all channels

The core of unified commerce is the central data source that connects all of a company's channels. Whether in the online store, in the app or in the store - all customer interactions and the associated data are recorded and synchronized in real time. This means that information such as product availability, stock levels and order histories are always up to date. For example, customers can see online whether an item is in stock in a store near them, or they can buy a product online and collect it directly from the store.

For retailers, this means that all business processes run transparently and uniformly without customers receiving different information on different channels. The complete integration of channels ensures a seamless customer journey that leaves no barriers between the various purchasing options.

Real-time data integration at the heart

Real-time data integration is at the heart of unified commerce. All stock, sales, transactions and customer interactions are continuously recorded and brought together in a single system. This means that retailers have a complete overview of all activities across the entire company - regardless of whether they take place online or offline. The benefits of this comprehensive data integration are clear: you can respond more quickly to customer needs, avoid stock shortages and enhance the digital customer experience at the same time.

In addition, real-time synchronization allows customers to access accurate and consistent information at all times. If, for example, the stock of a product changes or special promotions are launched, these are adjusted immediately on all channels, without delays or misunderstandings.

Benefits for the customer experience and internal efficiency

The benefits of unified commerce are not only evident in the area of customer experience, but also in internal processes. Retailers can increase the efficiency of their processes as they can access up-to-date data at any time and make decisions more quickly. This reduces stock errors, minimizes stock shortages and optimizes delivery times.

For your customers, this means a consistent, seamless shopping experience, regardless of which channel they use. Whether purchasing via the website, visiting a store or picking up a product ordered online, the customer experience remains consistently high-quality and personalized.

Unified commerce vs. omnichannel: What are the differences?

Although the terms unified commerce and omnichannel are often used in a similar way, there are key differences between the two approaches. In the omnichannel model, companies offer their customers various sales channels, such as an online store, a mobile app or a physical store. However, these channels are often not fully connected, which can lead to a fragmented customer experience. For example, a customer might buy a product online but not be able to pick up or exchange the same order in-store because the channels' systems are not synchronized.

Unified commerce, on the other hand, goes one step further: it integrates all channels and systems into a single platform so that all data - from inventory and transactions to customer data - is centrally recorded and updated in real time. This not only enables a seamless customer experience, but also a more precise analysis of customer behavior. Omnichannel vs. unified commerce therefore means that unified commerce is an advanced form of the omnichannel approach in which the separation between channels is eliminated.

The benefits of unified commerce are obvious: you can offer your customers a consistent and personalized experience, no matter which channel they interact with. At the same time, you increase your operational efficiency as all processes - from inventory to order fulfillment - are linked. For retailers, this means not only an improved customer experience, but also higher customer satisfaction and loyalty.

Practical examples of unified commerce

Many leading brands are using unified commerce to offer their customers a seamless and consistent shopping experience. Let's take a look at some typical examples of what unified commerce looks like in practice.

Order online and pick up in store (BOPIS)

A frequently used example of unified commerce is the “Buy Online, Pick Up in Store” (BOPIS) approach. Customers order their products online and can pick them up in a nearby store. Thanks to the real-time synchronization of stocks and transactions, customers know exactly whether their desired product is available and when it will be ready for collection. This not only improves customer satisfaction, but also reduces shipping costs and speeds up the entire ordering process.

Various fashion brands (e.g. Zara or H&M) successfully use this model and offer their customers the option of ordering products online and picking them up in a local store. This ensures flexibility and a seamless shopping experience.

Research online and buy offline

Another classic example is the ability to research products online and check whether they are available in a store. Customers can visit a retailer's website, view product information and find out directly in real time whether the desired item is in stock in the nearest store. They can then either reserve the product online or buy it directly in-store.

This approach avoids frustration, as customers know exactly where to find their items, while also increasing traffic to brick-and-mortar stores. Companies such as IKEA use this approach to combine online and offline experiences and offer their customers the most convenient way to make a purchase.

In-store returns (omni-returns)

Another popular example of unified commerce is the omni-returns feature, which allows customers to return products they have purchased online to a store. Thanks to centralized data collection and real-time synchronization, the return process is seamless, regardless of where the purchase was originally made.

Companies that have implemented unified commerce can process returns more efficiently, resulting in an improved customer experience strategy. Customers appreciate the flexibility to return products in-store without having to go through the shipping process again. This simple return process strengthens customer loyalty and increases satisfaction.

Mobile apps and in-store collections

Many retailers now offer their customers an app that allows them to browse products, pay online and pick them up in-store later. For example, a customer selects an item in a retailer's app, pays for it directly and picks it up in a physical store.

Implement unified commerce with Shopify

With Shopify, you have the opportunity to implement unified commerce in your company easily and efficiently. Shopify offers a variety of tools that allow you to centrally manage your sales channels and business processes and create a seamless connection between your online and offline sales. So let's take a closer look at some of Shopify's key features:

Shopify Markets: Centrally manage international markets

An essential part of unified commerce is the ability to manage multiple markets worldwide from one centralized platform. With the new features of Shopify Markets, introduced as part of Shopify Summer Editions 2024, you can efficiently manage your international markets from one central platform.

Shopify Markets bundles all expansion activities - from B2B to cross-border trade to stationary retail (POS) - in a single interface. This allows you to customize currencies, country-specific taxes, catalogs and store themes for different markets while keeping an eye on all markets and their performance. The new Markets interface in the Shopify admin area will be available to all Shopify customers in the coming months.

Shopify POS: Seamless connection of online and offline sales

Another central element of unified commerce is the linking of online and offline sales. Shopify makes this possible with Shopify POS (Point of Sale), which seamlessly connects brick-and-mortar retail with your online store. With Shopify POS, you can not only process orders in-store, but also synchronize them with your online transactions. A typical example is the option for your customers to buy products online and pick them up in one of your stores (Pick & Collect).

You also have the option of having purchases made in your store delivered directly to their home, which offers customers additional flexibility. As all transactions and stock are synchronized in real time, you always have an overview and your customers benefit from a seamless shopping experience.

Click & Collect: flexibility for your customers

Shopify also offers you functions such as Click & Collect, which enable you to offer your customers a flexible and personalized customer experience. Customers can decide for themselves when and where they want to collect or receive their orders.

With Shopify POS (Point of Sale) you can integrate this function seamlessly. Shopify synchronizes the stock of your online store and your physical stores in real time, so that customers can immediately see whether the desired item is available in a store when ordering online. The order is then managed directly via Shopify and your customers receive notifications as soon as their order is ready for collection.

You can also flexibly configure the shipping and pick-up options in Shopify and efficiently organize the pick-up process in your store. Shopify's Pick & Pack features optimize the order process in your warehouses, making fulfillment faster and error-free. This integration of online and offline activities improves the interaction between your business and customers and ensures an optimized, smooth shopping experience.

Implement unified commerce easily and efficiently with Shopify

In addition to the functions already mentioned, you are also supported by other tools such as Shopify Flow, which automates complex workflows and ensures smooth processes between your sales and administration channels. Functions such as omnichannel marketing and customer segmentation ensure that you can make personalized and targeted offers to customers across different platforms.

Conclusion

Unified Commerce offers a pioneering solution for retailers who want to provide a seamless shopping experience across all channels. In contrast to the traditional omnichannel approach, unified commerce brings all systems and channels together in one central platform, which brings decisive advantages for both your customers and your company. With Shopify, you have the ideal platform to implement unified commerce in your company. With tools such as Shopify Markets and Shopify POS, you can future-proof your business model and reach your customers optimally at every touchpoint. This not only strengthens customer loyalty, but also gives you the flexibility to react quickly to market changes.