How to Avoid Internal Sales Cannibalization Between Online & Offline

Retailers know omnichannel is the way forward, but many still have their online and offline teams in an internal tug-of-war. Store managers worry that eCommerce is stealing foot traffic, while eCommerce teams feel blocked by outdated systems, leading to much slower growth and a customer experience that feels anything but seamless.

This challenge came up again and again during our executive dinners with eCommerce leaders across London, New York, Sydney, and beyond. Over the course of 20 sessions, a pattern stood out that even retailers with the right tools often struggle to get their teams aligned. 

In this article, we’ll break down the causes of internal sales cannibalization, why it’s still so common in 2025, and how to fix it.

The problem

Sales cannibalization usually starts with good intentions: teams trying to hit their targets. However, when online and offline are measured separately, every eCommerce win feels like a loss for the store—and vice versa.

Around 75% of retailers say their online sales cut into store revenue. In practice, this only happens when the strategy is off. 

We’ve seen it play out in different ways:

• Store managers discourage in-store customers from using digital tools or online offers
• Online teams launch campaigns that drive foot traffic but get no credit for it
• Customers notice price differences and start shopping based on what’s cheapest, not what’s most convenient
• Meetings turn into debates about attribution instead of progress.

The business is set up to compete with itself. And when teams aren’t aligned on incentives or data, the customer ends up with an experience that feels disconnected and frustrating.

The good news is that internal misalignment can be solved. Next, we’ll walk through the key problem areas, and the practical steps retailers are taking to get their online and offline channels working together.

Also read:
Growing Online Sales for Brick-and-Mortar Stores

Solutions for internal sales cannibalization

Solving internal sales cannibalization starts with identifying where friction exists between your teams, tools, and incentives. Below are six proven strategies retailers are using to align online and offline channels. 

Solution 1: Fix pricing

When customers compare prices across channels and see a mismatch, they start to question the entire brand. Is the online price wrong? Are they being overcharged in store? Should they wait for a better deal? This hesitation reduces trust, and it’s tough to win back.

Channel-specific pricing is one of the fastest ways to create internal tension:

Store managers feel undercut by online promos they can’t match → eCommerce teams struggle to maintain margins if they’re constantly price-matching physical stores → meanwhile, the customer gets stuck in the middle.

Unify your pricing strategy to avoid this!

Here’s what to do

• Audit current price inconsistencies to identify where differences exist across SKUs and campaigns
• Standardize pricing rules across all channels and eliminate exceptions unless there’s a strategic reason (e.g., app-only loyalty perks)
• Align promotions—run the same offer online and in store, or clearly communicate why something is exclusive
• Make sure in-store teams know what’s running online and are prepared to support it.

Customers shouldn’t have to think twice about where to shop. When pricing is aligned, their decision becomes easier, and they’re more likely to convert.

Solution 2: Set shared goals

Online and offline teams often chase different KPIs. Store managers focus on foot traffic and in-store sales. eCommerce teams look at clicks, sessions, and digital revenue. 

Neither side is wrong, but in this setup, every “win” for one feels like a loss for the other. A successful online promo is seen as lost revenue in store, or a customer who visits a store and later buys online isn’t attributed to store efforts.

Here’s what to do

• Replace siloed KPIs and instead track total sales, customer lifetime value, and repeat purchase rate, not just online or in-store metrics
• Create shared dashboards where both teams see the same data
• Reward collaboration: give store staff credit for BOPIS orders and online referrals, and recognize eCommerce for campaigns that increase in-store traffic
• Make omnichannel part of performance reviews and incentives.

Solution 3: Show what’s in stock

Almost nothing frustrates a customer more than thinking a product is available only to find out it’s not. Real-time inventory visibility is one of the most practical ways to connect your channels and improve the experience. 

This isn’t just about logistics. When availability is visible and reliable, customers are more likely to buy.

Here’s what to do

• Sync inventory data across online and offline systems so product availability updates in real-time
• Let customers check in-store stock from the website or app before making the trip
• Offer options like buy online, pick up in store (BOPIS) and “buy in store, ship to home” to turn interest into purchases—even when a location doesn’t have the item on hand
• Equip store staff with tools to check stock at other locations and help customers order online on the spot.

Watch the webinar recording where we cover this article’s topic and more ways to grow online sales for brick-and-mortar stores!

Solution 4: Bridge the gap with loyalty

A loyalty program should connect the entire customer experience. But too often, loyalty is split across channels. Customers earn rewards online but can’t redeem them in store or make in-store purchases that never appear in their profile. 

When unified loyalty becomes one of the most effective tools for blending physical and digital, opening the door to better personalization and stronger retention.

Here’s what to do

• Set up a single loyalty account that works online and in store—no separate logins, no duplicate profiles
• Make sure every purchase feeds into the same system, no matter where it happens
• Use that combined data to tailor offers, recommendations, and perks based on real customer activity
• Let in-store shoppers scan a QR code or digital ID to instantly connect the sale to their profile.

Solution 5: Train store staff

Store teams often get left out of digital conversations, even though they interact with customers face to face, answer questions, and handle objections. They can’t support it if they don’t understand how online fits into the bigger picture. That kind of disconnect slows down every omnichannel effort.

Here’s what to do

• Include store staff in omnichannel training and explain how digital tools support their work, not replace it
• Equip teams with in-store tablets, real-time inventory lookups, and access to the entire product catalog
• Make it easy for staff to help customers order online if something isn’t available in store
• Update incentive programs so store employees are rewarded for their total contribution.

Solution 6: Start small, then scale

Trying to fix everything at once usually leads to stalled projects and internal resistance. A pilot program gives you a chance to test ideas and collect real data before committing across the board. It also gives teams space to adapt, ask questions, and see results for themselves.

Here’s what to do

• Choose one region, store cluster, or product category where you can test your new pricing, inventory, loyalty, and training strategy
• Set clear goals for the pilot, like improved conversion rates and customer satisfaction or higher overall revenue
• Monitor results closely and share wins across the company
• Use feedback from the pilot to fine-tune processes before expanding.

Small wins build momentum. Once you prove it works in one part of the business, bringing everyone else on board becomes much easier.

Key takeaways 

Remember—internal sales cannibalization is always a sign that your current strategy isn’t working. Fixing that disconnect means designing an experience where online and offline support each other and drive total revenue forward. Here are the key takeaways:

• Customers expect pricing and promotions to be consistent—so should your teams
• Shared goals reduce internal friction and focus everyone on business-wide growth
• Real-time inventory sync helps customers make confident decisions
• Loyalty programs are more powerful when they connect all shopping behavior
• Store staff play a critical role in omnichannel success.

Need help building the foundation? At scandiweb, we’ve helped leading retailers across an array of industries move past channel friction and build winning strategies. Let’s talk about how to unify your channels and drive measurable results. 

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