Mastering multichannel operations: Strategies for SMEs in 2025

The business landscape for small and medium-sized enterprises (SMEs) in the DACH region is recovering. In the first half of 2024, SMEs experienced significant momentum, with revenues increasing by 19% compared to the same period in 2023. Both online and offline sales were driving this growth, highlighting one key takeaway: a multichannel strategy is no longer optional — it’s essential.

But what does it take to master multichannel operations as an SME? How can businesses leverage both the speed and flexibility of online channels and the stability of offline sales?

The multichannel advantage: Why SMEs need a balanced approach

Multichannel operations allow SMEs to diversify their sales and reduce dependence on a single revenue stream. Findings from the Xentral Business Barometer Report reveal a balanced performance across channels:

• Online shops are leading the charge with +24% revenue growth, driven primarily by a 26% increase in order volume.
• Meanwhile, brick-and-mortar sales remain vital, achieving +17% growth, with larger average order sizes (+22%) contributing to the uptick.

This dual-channel success underscores the importance of a diversified sales approach. While online sales excel in agility and scalability, offline sales offer reliability and predictable cash flow — key advantages for SMEs navigating an uncertain economic climate.

How multichannel operations drive resilience and growth

A successful multichannel approach leverages the strengths of each sales channel to create a balanced, adaptable business model.

Online channels offer speed and flexibility

Online sales allow businesses to test new products, reach a broader audience, and scale quickly. In the first half of 2024, product diversity in online channels increased by 13%, compared to just 2% in offline channels. This flexibility enables SMEs to innovate faster and meet changing customer demands.

Brick-and-mortar sales provide stability

While online sales excel in adaptability, brick-and-mortar channels offer stability, particularly for high-value and wholesale orders. Larger order volumes have been a major contributor to offline revenue growth, making physical retail essential for industries that rely on predictable cash flow.

Industry-specific trends in multichannel success

Different industries are using multichannel operations to their advantage in unique ways:

• Sports & Leisure brands are partnering with retail stores to expand their reach.
• Fashion businesses are building robust online shops to complement their established offline presence.
• Food & Beverage companies are leading online growth, with their own online shop revenues increasing by 42%.

These examples highlight that a multichannel approach can work across sectors, provided businesses choose the right channels for their audience.

4 key strategies for mastering multichannel operations

Balancing multiple sales channels requires careful planning and efficient execution. Here’s how SMEs can optimize their multichannel strategies:

Choose the right channels for your business

Not every channel is right for every business. Start by identifying where your customers are most active and which channels generate the highest returns. For many SMEs, own online shops have been the top performers, delivering the strongest revenue growth across industries. They offer control over branding, customer relationships, and margins, making them an ideal choice for businesses aiming to build a direct connection with their audience.

At the same time, marketplaces can be a valuable addition to the channel mix, especially for businesses looking to expand their reach quickly or test new markets with lower upfront investment. 

Meanwhile, brick-and-mortar sales remain indispensable, especially for handling larger, wholesale-focused orders and building trust through in-person experiences. Combining the scalability of online sales, the visibility of marketplaces, and the stability of offline operations creates a powerful growth engine for SMEs.

Streamline operations for a seamless customer experience

Customers today expect consistency, whether they shop online or in-store. To meet these expectations, SMEs must ensure seamless operations across all channels.

For example:

• Integrate inventory systems to keep stock levels accurate in real time.
• Align pricing and promotions across channels to avoid customer frustration.
• Optimize order fulfillment to ensure timely deliveries and a great customer experience.

When operations are aligned, customers enjoy a frictionless journey, and businesses benefit from increased loyalty and repeat sales.

Use data to drive smarter decisions

Data is the foundation of any successful multichannel strategy. By analyzing sales trends, order data, and customer behavior, SMEs can identify opportunities to optimize performance.

For example, businesses can use data to:

• Pinpoint their most profitable products and sales channels.
• Monitor cash flow trends to balance the stability of offline orders with the growth potential of online sales.
• Make informed decisions about inventory levels and product launches.

Leveraging data ensures that every channel operates efficiently and contributes to overall growth.

Automate to scale and reduce complexity

Managing multiple sales channels manually can quickly become overwhelming as a business grows. Without automation, teams often juggle spreadsheets, disconnected tools, and repetitive tasks, which can lead to costly errors and delays. As order volumes increase, these inefficiencies become even more pronounced, creating bottlenecks that hinder growth and frustrate customers.

Despite its many benefits, a multichannel approach isn’t without challenges. Common obstacles for SMEs include:

• Inventory mismanagement, leading to overselling or stockouts.
• Fragmented data across systems, making it difficult to track performance.
• Operational inefficiencies that slow down fulfillment and increase costs.

The solution lies in integrating tools that provide a unified view of inventory, orders, and customer data across all sales channels. By streamlining these processes, SMEs can overcome operational hurdles and build a foundation for growth. Furthermore, automating workflows makes it easier to scale operations, whether that means adding new sales channels, handling larger order volumes, or expanding into new markets.

The future of multichannel operations

Looking ahead, multichannel operations will continue to evolve as technology advances and consumer expectations shift. SMEs that stay agile and embrace these changes will be best positioned to thrive in an increasingly competitive market. Here are the key trends shaping the future of multichannel commerce:

Channel diversification: expanding horizons

The multichannel landscape is no longer limited to online shops and brick-and-mortar stores. More businesses are expanding into marketplaces, forming retail partnerships, and exploring social commerce platforms.

One area to watch is TikTok Commerce, which is rapidly gaining traction as social media platforms evolve into full-fledged sales channels. For SMEs, TikTok presents an opportunity to combine product discovery, entertainment, and seamless purchasing within a single platform. This trend is particularly impactful for brands targeting younger, digital-native audiences who prefer engaging and interactive shopping experiences.

Similarly, other social platforms, like Instagram and Facebook Shops, continue to blur the line between content and commerce. SMEs leveraging these tools can tap into built-in audiences and drive sales through direct engagement with customers.

Advanced tech adoption: streamlining complexity

As multichannel operations become more sophisticated, SMEs will need to embrace technology to manage growing complexity. Tools like ERP systems, AI-powered analytics, and automation software will play a central role in streamlining operations, from inventory management to customer communication.

Emerging technologies such as AI-driven demand forecasting and automated fulfillment solutions are already transforming how businesses optimize stock levels, reduce waste, and improve delivery times. For SMEs, this means fewer operational headaches and greater efficiency as they scale.

Customer-centric strategies: Personalization across channels

Modern consumers expect seamless, personalized experiences across all channels. To meet these expectations, businesses will need to invest in tools and processes that unify customer data across touchpoints.

For example, omnichannel loyalty programs that reward customers for purchases both online and offline are becoming increasingly popular. Additionally, businesses are using personalized product recommendations and AI-driven communication to create tailored experiences that keep customers engaged and loyal.

The brands that excel will be those that provide a cohesive experience at every stage of the customer journey, from product discovery to checkout and beyond.

Sustainability and ethical operations

Consumers are becoming more conscious of their purchasing habits, placing greater value on businesses that prioritize sustainability and ethical operations. For SMEs, this means aligning multichannel strategies with sustainable practices, such as:

• Reducing packaging waste and offering eco-friendly shipping options.
• Optimizing supply chains to minimize carbon footprints.
• Highlighting transparency around sourcing and production processes.

Integrating these efforts into multichannel operations not only appeals to environmentally conscious consumers but also builds trust and long-term loyalty.

Multichannel operations are the key to SME growth

SMEs that embrace multichannel operations are achieving significant growth and resilience in 2025. By balancing the agility of online sales with the stability of offline operations, businesses can build a more adaptable and successful future.

To master multichannel operations, SMEs should:

• Identify the most valuable sales channels for their business.
• Streamline operations to provide a seamless customer experience.
• Use data to make smarter decisions and optimize performance.
• Embrace automation to scale efficiently and reduce complexity.

With the right strategies in place, SMEs can not only meet today’s challenges but also unlock new opportunities for growth — across all channels.

About Xentral

With Xentral, running your business is simple. Our cloud-based ERP connects inventory, sales channels, accounting and more in one platform. Saving you time and reducing errors. Manage online, offline, B2B and B2C sales effortlessly with key processes and features ready out of the box. Focus on growth while automatic updates, a powerful middleware, and expert partners keep you future-proof. Easy to set up, Xentral evolves with you at every stage from building your base to expanding your reach, ensuring lasting success.

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