With Dynamics 365 for Operations Fall Release (7.1), brick and mortar stores can use warehouses with advanced warehousing. This should also be enabled for online stores.
Enabling Advanced warehousing for Retail channels should be backported to AX 2012.
Administrator on 11/7/2022 3:09:17 AM
All Commerce channels (online, call center, retail stores) use unified back office platform for warehouses and inventory managment. You can certainly enable the online channel default warehouse to be advanced warehouse to manage inventory as part of your organization's back office operations. However, we cannot backport this to AX 2012. - Boyce Zhu, Principal Product Manager, Dynamics 365 Commerce