Unified commerce is swiftly becoming the game-changer for European retail, yet few companies have fully embraced its transformative power. Here’s how integrating software with embedded payments can pave the way for a truly interconnected shopping experience across the continent.
What is Unified Commerce?
In an era where consumer expectations are continuously evolving, the convergence of physical and virtual retail channels is not just a trend but a necessity which we strongly see in European retail as well. A recent survey conducted by the Insa opinion research institute on behalf of European Fintech Unzer revealed that 41.5% of respondents desire a retail experience that seamlessly integrates the best of both physical and digital worlds. This growing demand underscores the importance of unified commerce, a concept that transcends the limitations of traditional omnichannel strategies.
Unified commerce goes beyond merely offering products and checkout through multiple channels. It involves integrating all sales channels into a single platform, providing a cohesive and consistent shopping experience. Unlike omnichannel retail, where each channel operates on separate systems with limited connectivity, unified commerce consolidates these channels, ensuring real-time data flow and interaction across platforms.
The Consumer Experience
Unified commerce empowers consumers to navigate effortlessly between online and offline shopping environments. Imagine ordering a pair of shoes in-store but regretting the purchase once back home. You can easily initiate the return via the merchant’s online portal, thanks to the unified system that tracks your purchase history and preferences in real-time. This seamless integration addresses common pain points, such as redeeming online coupons in-store or finding out-of-stock items in one channel but available in another.
The Retailer’s Advantage
For European retailers, the benefits of unified commerce are multifaceted. By integrating all sales channels into a single platform, businesses can streamline their operations, reduce technical complexity, and save time and costs. A unified commerce platform provides a central hub where merchants can view sales data, inventory levels, and customer preferences, enabling data-driven decision-making and personalized customer interactions.
For example, with a unified commerce payment platform, a retailer can track a customer’s purchases across all channels, understand their preferred payment methods, and tailor loyalty programs to enhance customer retention. This level of integration also simplifies the addition of new sales channels or payment methods, ensuring the retailer remains agile in a dynamic European market.
Real-Time, Cross-Channel Integration: The Key to Success
One of the critical advantages of unified commerce is real-time cross-channel integration. This feature ensures that inventory levels, customer data, and sales information are always up to date across all channels. If a customer orders the last pair of trousers online that are available in-store, the system will immediately reflect this across all platforms, preventing overselling and enhancing customer satisfaction. The opposite case is the endless aisle – if an item is unavailable in one store but is available in another or in the warehouse, the merchant’s website or app will show it as available nevertheless.
Facilitating the Factory-to-Consumer Approach
Real-time data is also the key to the factory-to-consumer trend, popularized by companies like Temu and Shein. Many European retailers are adopting this model to stay competitive. With real-time inventory tracking and efficient order processing, platforms like UnzerOne improve inventory management and streamline operations. This approach not only reduces costs but also enhances the shopping experience by ensuring timely, direct delivery to consumers across Europe.
Unified Commerce in Fashion: A Case Study
The fashion industry provides a compelling example of how unified commerce is transforming retail. A study by Unzer and IFH Cologne in 2023 shows that over 70% of consumers use multiple channels to prepare for a purchase, make a decision, and complete the transaction. In particular, mobile devices are becoming the dominant force in online shopping, with over 50% of online Ωpurchases done on mobile, according to the European Ecommerce report 2023. This surge is driven by the proliferation of mobile apps, which offer enhanced user experiences, easy navigation, and secure payment options with simple authentication. This highlights the need for retailers to integrate mobile, online and in-store channels into one system.
According to the survey, top unified commerce services in the fashion sector include using a store locator online, checking in-store availability online, and utilizing a customer card or account both online and in-store. For instance, 82% of customers are highly satisfied with the ability to check item availability in-store via online platforms. Additionally, 78% of consumers appreciate the convenience of using a single customer account across both online and offline channels.
Younger consumers, in particular, exhibit higher usage rates of unified commerce services. For example, services like redeeming online discount coupons in physical stores or using mobile apps for product information and promotions have seen widespread adoption. Specifically, in the fashion industry, 31% of consumers use online discount coupons that can be redeemed in-store, and 29% use apps to stay informed about promotions and discounts.
The integration of these services is not just about convenience; it directly impacts consumer satisfaction and loyalty. Retailers that offer a cohesive shopping experience across channels are better positioned to meet consumer expectations and foster long-term loyalty. This is particularly critical in fashion, where trends shift rapidly, and customer engagement is paramount.
Looking Forward: The Need for Action
Many merchants have understood that unified commerce has become a strategic driver of business growth. Two-thirds of retailers view a solid unified commerce as essential for increasing sales and retaining customers in the long term. Four out of five retailers even say that unified commerce is more effective for acquiring new customers compared to investments in emerging technologies like the metaverse or blockchain.
However, this is in stark contrast toward full implementation of unified commerce, which is still in its infancy. Most merchants use a variety of applications for their sales, payments, fulfilment, and finance processes that are either poorly integrated or not integrated at all. At the same time, they are generating more and more data from their activities. Yet only those retailers that collect and structure this data can utilise it to gain insights and improve their operations and thus the customer experience.
A Strategic Imperative for Retail Success
Today’s consumers navigate effortlessly between the physical and digital worlds. They might research products online, visit a store to see them in person, and complete their purchase through a mobile app or e-commerce platform.
The shift towards unified commerce is more than a technological upgrade; it’s a strategic imperative for European retailers aiming to meet the modern consumer’s expectations. Despite the clear benefits, there is a pressing need for retailers to accelerate their implementation efforts. By leveraging unified commerce platforms, businesses can provide a seamless, personalized shopping experience, whether online or offline, and stay competitive in a rapidly evolving retail landscape.
About the author
Niv Liran, Chief Product and Technology Officer, Unzer
Niv Liran, as the Chief Product and Technology Officer at Unzer, spearheads Unzer’s product and engineering strategy and teams, leveraging his extensive experience in scaling tech departments. Unzer’s unified commerce platform, conceptualized under Niv’s leadership, integrates multiple sales channels into a singular real-time solution, ensuring consistent customer experiences and providing businesses with comprehensive data across all touchpoints.
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