Click & Mortar Management

Click & Mortar Management

Going Offline From Online and Vice Versa
Every second purchase is made using ship-to-store delivery, while 42% of shoppers state an ability to reserve online and purchase in store as important during the browse process.
People want to feel and touch the products they’re going to pay for, whether they are judging the automotive supplies quality or checking if the size of pants fits them. It’s no wonder online and offline retailers are turning into the Click & Mortar companies.
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Click and mortar management

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Click and Mortar is a play on words for brick-and-mortar, where mortar stands for material to bound bricks, and a “click” referred to an e-commerce website. Click and Mortar shops allow customers either to browse across the retailer’s website or visit a physical store.

Nowadays it’s even shocking to meet a company not having the offline-online synchronization. A pure online or offline approach doesn’t meet the need of today’s customers, while an interplay between the two drives conversion and widers the range platforms and services. This business model may be referred to as an omnichannel strategy and is followed by as huge retailers as Wal-Mart, Amazon, Nordstorm and Best Buy.

Why merge offline and online

For customers
  • greater flexibility
  • more choices
  • many services
  • more convenience
  • face-to-face interaction & efficiency of online transactions
For retailers
  • more transactions
  • good customer relations
  • promotions are shown up higher in search engines
  • cultivation of brand and product culture

Research offline purchase online

Research online purchase offline is a recognized strategy among at least 35% of shoppers, and 33% go to the physical store when they need something urgently. New customer behaviour consists of treating a shop like a showroom, trying a pair of shoes and ordering them online afterwards. That’s a risk for small shops selling good easy to purchase online.

Click & Mortar Management

The challenges of the Click & Mortar approach

Creating different business strategies for every channel.
Keeping inventory in sync, prevent deficit and proficit. An example: if inventories are separated, available items needlessly stay in stock.
Integration of sales portals.
Keep consistent pricing. Offline shops can’t change prices as often as the online ones, but the pricing strategy has to balance between the two of them, to have at least the same pricing philosophy.

Going from offline to online: the old good brick-and-mortar shop is back

No matter how large the shop is, going online means creating a business-in-a-business. Moreover, every category may become a separate business unit with a head-of-category to define its plans and strategies. While going online, a retailer needs to specify his aims and global plan: will online become a number two channel or will the new online shop grow up to a separate e-tailer giant?
It defines the further business strategy, financial planning, hiring process, etc.

On your way to the marketplace

There are two main channels for retailers willing to sell online: a website and a page on a marketplace. While trying to develop the last channel, a retailer needs to make priorities. Usually a marketplace becomes an extra platform for selling goods, another business-in-a-business requiring its own development program, competitive pricing strategy, and marketing specialists.
The marketplace is a competitive environment on it’s own, with particular rules, and ratings which directly influence retailer’s income. Every extra cent in price, every bad review and delivery condition are decisive factors.
That’s why in this case, the retailer needs to build a special team dedicated to supporting the marketplace account.

eCommerce best practices

Source: UPS Online Shopper Pulse. Volume 1.

Going from online to offline: the death of pure e-commerce?

About ten years ago retailers were thinking that the commerce world is going online-only, killing brick-and-mortar shops. Though digital shopping moves on, e-tailers recognize the importance of customer experience. Walk-in traffic doesn’t exist online. Going offline creates brand equity. That’s why Amazon or Warby Parker are scrambling to open physical stores.

Price intelligence

Source: UPS Online Shopper Pulse. Volume 3.

58% among young shoppers (comparing to 43% of shoppers aged between 26-35) prefer to shop in a physical store seeking an authentic experience: discounts, food and drinks, and more personalization.

Modern shoppers become more connected and demanding: they need a continuous and transparent experience, an omnichannel shopping journey allowing them to move from one option to another.
The dependence on an online-only or offline-only approach puts the retailer in an undesirable position.

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Click & Mortar Management