RFID: The Key to Omnichannel Fulfillment Success in Retail

In today’s fast-paced fashion retail landscape, consumers expect seamless shopping experiences across all channels. They demand convenience, speed, and flexibility—whether shopping online, on their phones, or in stores. This shift has made omnichannel a necessity rather than a luxury, with BOPIS and SFS emerging as game-changing strategies for fashion brands.

The Omnichannel Challenge in Fashion Retail

Fashion retailers struggle to provide seamless omnichannel experiences due to a fundamental challenge: knowing exactly what inventory they have and where it is in real time. While 55% of retail leaders aim to enhance customer experiences across channels, only 16% have successfully implemented a fully functional omnichannel strategy, creating a significant competitive disadvantage.

The separation of online and physical retail operations has led to inventory management issues:

• Inaccurate inventory data—Traditional accuracy rates hover around 60-70%, far below the 98-99% needed for efficient omnichannel fulfillment.
• Slow inventory updates—Manual barcode scanning requires line-of-sight and limits efficiency, with many retailers conducting full-store audits only twice a year.
• Strained fulfillment operations—Nearly 42% of online orders involve stores for fulfillment or pickup/returns, leading to stockouts, delays, and poor customer experiences.

RFID: The Technology Powering Omnichannel Success

RFID (Radio Frequency Identification) is the backbone of modern omnichannel retail. Unlike traditional inventory systems, RFID offers near-perfect visibility across all channels, improving these key fulfillment strategies:

Buy Online, Pick Up In-Store (BOPIS)

BOPIS combines the convenience of online shopping with the immediacy of in-store pickup, eliminating shipping delays. This market is set to grow from $129.36 billion in 2024 to $509.4 billion by 2033, with a CAGR of 16.45%. RFID enhances BOPIS by:

• Providing real-time inventory visibility, ensuring reliable in-store pickup availability.
• Enabling store associates to locate items quickly using RFID readers.
• Preventing stock discrepancies that lead to customer disappointment.

Ship from Store (SFS)

SFS turns physical stores into fulfillment centers, reducing dependency on centralized warehouses. RFID improves SFS by:

• Enabling retailers to ship from the nearest store, reducing shipping costs and markdowns.
• Helping associates quickly find items for shipping, speeding up fulfillment.
• Ensuring real-time inventory tracking for optimized order fulfillment.

Other Omnichannel Processes

Additional strategies like BORIS (Buy Online, Return In-Store) and ROPIS (Reserve Online, Pickup In-Store) also benefit from RFID. These approaches create a unified shopping experience where online and offline operations seamlessly integrate.

How RFID Boosts Omnichannel Sales and Reduces Costs

Inventory Accuracy and Visibility

RFID enables real-time tracking of every item across the supply chain, allowing retailers to:

• Prevent stockouts by maintaining accurate inventory levels.
• Reduce overstock and avoid unnecessary markdowns.
• Enable omnichannel selling without the risk of order cancellations.

Retailers implementing RFID-driven inventory management report omnichannel sales increases of up to 15% by leveraging real-time inventory across all locations.

Operational Efficiency

RFID enhances efficiency by eliminating manual processes:

• It’s 25 times faster than barcode scanning and 99% accurate.
• Staff can quickly identify, pick, and pack items without manual scanning.
• Entire shopping carts can be scanned at once, streamlining checkout and fulfillment.
• 25% of retailers say finding items takes too long—RFID eliminates this issue.

These efficiencies help offset the fact that omnichannel fulfillment can be three times more expensive than traditional fulfillment models.

Last-Mile Cost Reduction

Last-mile delivery is the most expensive supply chain phase, costing an average of $10.10 per package. RFID improves efficiency and lowers costs by:

• Optimizing routing to minimize unnecessary trips.
• Reducing failed deliveries through accurate sorting and tracking.
• Automating proof-of-delivery, eliminating manual receiving at retail locations.
• Allowing quick adaptation to changing delivery demands.

With RFID, brands can cut last-mile costs while enhancing speed and accuracy in fulfillment.

Real-World Implementation: Zara’s RFID Success

Zara has revolutionized omnichannel retail with RFID, enabling real-time inventory tracking across all locations. Customers can reserve items online and pick them up in-store using RFID-equipped self-service kiosks. This seamless integration has improved customer satisfaction and increased repeat purchases.

Implementation Strategy for Fashion Brands

To successfully adopt RFID for BOPIS and SFS, retailers should:

1. Start with high-turnover categories to maximize ROI.
2. Implement item-level tagging for full inventory visibility.
3. Integrate RFID data with ERP, e-commerce, and POS systems.
4. Train staff on RFID-based processes.
5. Measure and optimize performance based on key metrics.

Many leading fashion brands begin with pilot programs before rolling out RFID chain-wide, allowing for process refinement and ROI validation.

Conclusion

In 2025’s retail landscape, BOPIS and SFS aren’t optional—they are essential for omnichannel success. RFID provides the foundation for these strategies, solving long-standing inventory and fulfillment challenges.

Fashion brands that embrace RFID gain significant competitive advantages, including:
✅ Higher inventory accuracy
✅ Reduced operational costs
✅ Improved customer experiences

As consumer expectations evolve, RFID-powered omnichannel strategies will define the next generation of retail leaders.

With Invento’s expertise in RFID solutions, we are the trusted partner to help you seamlessly implement RFID-enabled omnichannel strategies, driving efficiency, accuracy, and enhanced customer experiences.