Top Omnichannel Retail Challenges In 2025 & How to Overcome Them

As shoppers look to move effortlessly between online and in-store experiences, retailers must keep up with their ever-changing expectations.

Omnichannel retailing—where digital and physical shopping come together—not only opens up exciting opportunities but also brings challenges like managing inventory, personalizing customer interactions, and keeping transactions secure.

To stay ahead, businesses must tackle these hurdles while delivering a seamless shopping journey across all platforms. According to Porch Media Group, companies that have not fully leveraged omnichannel capabilities see only a 3.4% year-over-year increase in annual revenue, compared to a robust 9.5% growth observed in companies with strong omnichannel customer engagement.

In this article, we will explore the fundamental challenges and provide practical solutions to help businesses thrive in an omnichannel environment.

Key Omnichannel Challenges and Solutions: Top 5

1. Inventory Management and Demand Forecasting

Challenge: Customers often experience inconsistencies between online and offline shopping, particularly with inventory visibility. What appears in stock online may be unavailable in physical stores, leading to frustration and abandoned purchases.

It’s always a challenge to manage replenishment schedules effectively when there is a lack of proper inventory management, resulting in stockouts and a negative overall customer experience. Procurement Tactics states that the inventory accuracy in U.S. retail operations is only 63%.

Solution: Implement AI-driven demand forecasting tools to analyze shopping patterns and optimize inventory levels. For example, Walmart uses AI-powered analytics to anticipate demand and adjust stock levels dynamically, reducing excess inventory by 20% and a reduction in stockouts by 30%, as per Global Trade.

Advanced inventory management systems like RFID tracking and cloud-based platforms provide real-time stock updates, preventing discrepancies and improving fulfillment efficiency. In other examples, technology-driven solutions such as drone-based warehouse inventory management, as seen with U.S. retailers like Amazon, improve stock accuracy and efficiency, reducing reliance on unpredictable supply chains.

2. Inconsistent Cross-Channel Shopping Experience

A 2024 study by Wiser states that 54.85% of respondents reported experiencing discrepancies between online and in-store stock levels, thus affecting their trust in brands.

Solution: Retailers must integrate real-time inventory synchronization between online and offline stores. Companies like Target use an omnichannel fulfillment approach, allowing customers to check local store availability before purchasing.

Implementing "Buy Online, Pick Up In Store" (BOPIS) and "Ship from Store" strategies ensures better inventory accuracy, reducing customer disappointment. Advanced inventory management solutions, such as SAP and Oracle Retail, help retailers align stock levels across all channels, providing a seamless shopping experience.

3. Personalized Customer Engagement

Challenge: Personalization is no longer optional, with 80% of consumers stating they are more likely to buy from brands offering tailored experiences as per Epsilon. However, inconsistent data management often leads to ineffective targeting, resulting in irrelevant recommendations and poor customer engagement.

Solution: Retailers should leverage customer data analytics to create hyper-personalized experiences. For instance, Sephora uses AI-driven algorithms to recommend beauty products based on customer purchase history and browsing behavior, a model that other retail and CPG companies can replicate for product recommendations.

CRM systems like Salesforce allow businesses to track consumer behaviors across channels, ensuring consistency in personalized marketing efforts. AI chatbots, such as Sephora’s virtual assistant, further enhance engagement by providing real-time, customized shopping support.

4. Security and Fraud Prevention

Challenge: With online payment fraud projected to cost businesses over $343 billion globally between 2023 and 2027, as per Wiser Notify, ensuring data security is a top priority. Phishing attacks, identity theft, and payment fraud are common threats, particularly for businesses with weak cybersecurity infrastructure.

Solution: Strengthening cybersecurity measures with multi-factor authentication, AI-powered fraud detection, and secure payment gateways is essential. Companies like PayPal and Shopify have implemented tokenization and end-to-end encryption to protect customer data.

Retailers must also conduct regular security audits and comply with industry standards such as PCI DSS to prevent data breaches. Educating customers about secure online practices further enhances trust and protection.

5. Complicated Global Supply Chain Logistics

Challenge: Global supply chains are complex, with many retailers sourcing raw materials from multiple countries. Geopolitical tensions, trade restrictions, and volatile international relations can disrupt supply chains, increase costs, and lead to stock shortages.

According to Trax, 74% of companies have reported significant disruptions due to geopolitical events, with the average cost of these disruptions reaching $184 million per organization. For example, the U.S.-China trade war led to higher tariffs on imported goods, impacting retailers reliant on Chinese manufacturing.

Solution: Retailers can mitigate these risks through nearshoring—sourcing materials closer to their operational hubs. Walmart has diversified its supplier base by procuring products from Vietnam and India, reducing dependency on China.

Similarly, H&M has partnered with suppliers in Bangladesh and Turkey to enhance supply chain sustainability. Nestlé's responsible sourcing program ensures ethical procurement of raw materials like cocoa and coffee from Africa and South America.

Conclusion

From inventory management and cross-channel inconsistencies to security risks and supply chain disruptions, these hurdles can significantly impact customer satisfaction and revenue. However, by leveraging AI-driven forecasting, real-time inventory synchronization, personalized engagement tools, and advanced cybersecurity measures, retailers can build a resilient and customer-centric omnichannel strategy.

Leading brands like Walmart and Target are showcasing how technology-driven solutions can enhance operational efficiency while improving consumer trust and loyalty. Implementing data-driven insights, secure payment methods, and supply chain diversification will ensure agility and adaptability in an ever-changing environment.