What’s a Click and Mortal Business? (Meaning and Benefits)

A click-and-mortar business model is one in which a company operates both online and offline. This usually means that the company has both an online store and a physical location. In this article, we’ll be showing you all the information you need to know about click and mortar business. 

click and mortar business

What is a Click and Mortar Business?

Ecommerce is becoming an increasingly dominant feature of modern consumerism, particularly in the retail sector. In fact, retail e-commerce sales amounted to a staggering $5.2 trillion globally in 2021.

While they project this number to increase by a further 56% over the next four years. Within the e-commerce space, however, the so-called “click and mortar” business model is becoming increasingly dominant.

It’s currently adopted by brands like Walmart, Best Buy, and Nordstrom, suggesting that click-and-mortar stocks are also popular among investors. But what do we mean by ‘click and mortar and is this a good business model for you? Let’s find out!

What Do We Mean by Click and Mortar?

In simple terms, click and mortar refer to an omnichannel, e-commerce-led business model that integrates both online and offline operations. Within this, customers can shop with the brand both on and offline.

They can also leverage both channels simultaneously to optimize their shopping experience sometimes.

For example, many retail operations now enable customers to browse and shop for items online before reserving them or asking for them to be delivered in-store for collection. 

What are the Benefits of Click and Mortar Business?

Click and mortar business has a lot of advantages and benefits, below are some of them:

As we can see, click-and-mortar businesses can tailor experiences to suit individual consumers, potentially affording them access to a much wider market and target audience.

Certainly, brick-and-mortar stores restrict you to customers within a geographical catchment area, whereas online shops can’t capture shoppers who may distrust the saturated online marketplace.

Customers can also access product information online before heading in-store, enabling them to make informed decisions and carry out market comparisons ahead of time.

Click-and-mortar ventures also typically come with lower costs and fewer overheads, especially when compared with land-based businesses. This helps to reduce both internal and external cost inefficiencies.

You can streamline your payroll with a click-and-mortar model.

Click-and-mortar businesses are better placed to earn the trust of their customers more easily than straight e-commerce stores. This is because they keep a corporeal presence with human representation.

Is This Model Right for You?

Whether this is a suitable model for small or startup businesses is another matter. Most companies that become click-and-mortar entities start as sizable and well-resourced brands. They already have a physical retail presence.

Because of this and the reduced overheads associated with e-commerce, most new businesses start only online and may only look to open physical stores.

The key is to appraise the nature of your business and growth plan, before determining whether a physical retail presence can contribute to increased sales or profits.

Final Verdict

More and more entrepreneurs and larger businesses are becoming click-and-mortar businesses because they can provide consumers with all the advantages of quick and easy online shopping

It also provides the advantages of traditional in-person shopping. As a result, click-and-mortar brands cater to a broader range of demographics.

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