Brick-and-Mortar vs. E-Commerce Stores: How to Leverage the Best of Both

How to leverage both brick-and-mortar and e-commerce stores 

Combining elements of in-person and online shopping allows businesses to serve shoppers at various stages of the customer journey and provide options for them in different circumstances. At different points, customers may require the sensory engagement and immediate purchase potential of a brick-and-mortar store or the broader reach and convenience of online shopping. 

Here are some tips for maximizing both models to deliver a great customer experience and boost loyalty and profits.

• Create a compelling in-store experience. Optimize your physical shopping environment to provide customers with a unique and pleasant in-store experience. Consider the following tips:
  • Ensure your store is clean and attractive. 
  • Use store decór and displays to showcase products, bring attention to promotions and set the mood, especially during the holiday shopping season. 
  • Enhance the store environment with music and a pleasant scent to encourage shoppers to linger.
  • Ramp up your customer loyalty program perks to incentivize purchases and loyalty. 
  • During the holidays, implement a holiday customer loyalty program with additional incentives and rewards. 
  • Improve your customers’ waiting experience to make it more enjoyable.
  • Give out samples where appropriate.
  • Hold in-store events to bring in new customers and create a sense of fun and community.
• Use quick response (QR) codes to direct in-store customers online. When customers are in your store researching a product online, you could lose the sale to an online retailer. Instead, include QR codes on product labels to bring customers to product reviews on your website. This makes it more convenient for the customer and makes it more likely they’ll buy from you.
• Stay aware of competitors’ prices. Physical store owners and managers must keep an eye on prices. Your customers are already comparing you to online retailers, so know where you stand. If your prices are more expensive, ensure you highlight the benefits of buying from you — especially benefits that address why people shop in-store. For example, offering fast delivery of large items and easy returns may help justify your price. You can also use mobile marketing and geofencing to deliver coupons to customers in-store.
• Create a seamless online experience. If your store has an online component, be sure your website’s experience is geared toward finding items quickly and easily. While online buyers may visit an e-commerce store to avoid impulse purchases, they may still find additional items they want. So, cross-selling and upselling suggestions can be helpful and lucrative. Also, have a plan to stop shopping cart abandonment, such as automated emails reminding customers they have items in their cart and offering a discount to encourage purchasing.
• Increase foot traffic and a sense of community with in-store events. Bring your in-person and local online shoppers (and their friends) together with in-store events that you promote digitally. These can be product-related, such as a cooking demonstration for a home goods store, or holiday-focused. These events will create a sense of community among your customers and bind them closer to your brand.
• Create shelf signage with QR codes that link to online product reviews. When customers shop in-store and aren’t familiar with a product, they often check online reviews. Provide a link to that product’s reviews on your website to make it easy (and prevent them from going to a competitor’s site).
• Distribute digital coupons in your brand’s app. Loyal customers who download your brand’s mobile app will appreciate and use digital coupons in your store.
• Reduce friction at checkout with mobile POS terminals. In a physical retail store, long lines can discourage customers — and they may even walk away from the purchase. Speed the checkout process with a mobile POS system that allows sales associates to approach customers with POS tablets for payment.
• Offer more payment options in-store and online. Darryl Cumming, director of product management at NMI, says offering consumers their preferred payment methods both online and in-store is crucial. “Notably, 83 percent of consumers aged 18-24 and 87 percent of those aged 25-40 are eager to explore new payment technologies like digital wallets and mobile payments, which cater to their evolving needs,” Cumming said. Consider accepting an array of digital payment methods and online payment apps like Apple Pay, Cash App and PayPal.
• Consider opening a pop-up store to establish an in-person presence. Some online retailers would like to establish a physical presence, but overhead costs make it seem impossible. Gabi Day, CEO and founder of Bright Body, says pop-up stores can be an affordable solution. “For newer startups, pop-ups can be the only affordable way to start building a customer base and increase brand awareness,” Day advised. “Even for more seasoned brands, the occasional tried-and-true pop-up run by an experienced organizer with a solid marketing plan can be a good choice.”

Why consumers still shop at brick-and-mortar stores

If you think brick-and-mortar stores are on their way out, remember e-commerce only accounts for 15.4 percent of total retail sales in the U.S., according to Statista. This means nearly 85 percent of all retail sales occur in a physical store. With total retail sales for 2023 at $7.24 trillion in the U.S., the 3.1 million retail trade businesses across the country aren’t going anywhere soon. Additionally, research by Statista found that while 43 percent of consumers surveyed said they prefer to shop online, more than half prefer to go to a physical store. 

What makes a consumer choose to shop in a physical store? In-person shopping offers customers a unique and enjoyable experience that can’t be replicated online. Consider the following reasons why shoppers head to brick-and-mortar stores: 

• They enjoy the experience of shopping in a physical location.
• They want to see, feel and try out items they’re considering purchasing.
• They want or need the item now and don’t want to wait for delivery.
• They don’t want to pay shipping costs. 
• They enjoy finding unique products from local retailers that they can’t find online.
• They appreciate personalized customer service.
• They want the ease of returns and exchanges physical stores provide.
• They want to experience the social aspects of shopping with friends.
• They’re uncomfortable submitting payment details and personal information online.

Why consumers choose online shopping

While an in-person experience may drive consumers to a physical store, convenience frequently draws them to online shopping. Being able to shop anytime, anywhere, is a significant motivator driving projected annual online sales in the U.S. to exceed $1.2 trillion.

Consider the following reasons consumers turn to online shopping: 

• They appreciate the ease and convenience of online shopping.
• They want to see a broad selection of products and choices.
• They’re searching for a specific, hard-to-find item.
• They want to take advantage of free delivery.
• They want to utilize coupons and discounts.
• They appreciate the straightforward online checkout process. 
• They can easily compare products, prices and reviews across different websites.
• They avoid the hassle of crowds, parking and long checkout lines.
• They appreciate being able to shop 24/7.
• They can access items from international retailers.
• They can easily access customer reviews for specific items before purchasing. 

How customers use both brick-and-mortar and e-commerce stores when shopping

Many modern consumers reach their buying goals using both brick-and-mortar stores and e-commerce shopping. This omnichannel shopping experience is becoming the new norm. 

Here are a few ways consumers interact with online and in-person shopping. 

1. Shopping research

Research is one of the most significant crossovers between channels. For online retailers, this means some visitors use their websites to read reviews, compare prices and understand product features. In fact, 74 percent of consumers search online for something in-store-related before going to a physical store location, according to Google.

In many cases, online research is paired with in-person purchasing, where customers can try on, examine and experience a product for themselves. Much online pre-shopping research is done on Amazon, where reviews help consumers decide what product to buy, and the pricing sets a benchmark for evaluating other retailers’ prices. 

In-store shoppers also use their phones to check prices before purchasing. OuterBox Design found that 80 percent of brick-and-mortar consumers will check the price of an item on their mobile devices before making a purchase in the store.

2. Showrooming

The flip side of online research is a consumer practice called “showrooming.” With showrooming, shoppers go to stores to see what products are like in person and better understand their look, feel or fit. These consumers then go online to purchase the item for a better price or specific options unavailable in the store’s current inventory.

3. Blended experiences

Savvy retailers often blend in-person and online solutions, such as the “buy online, pick up in-store” (BOPIS) trend. Other blended experiences include virtual shopping and helping customers order online while in a store if an item or specifications aren’t available. Here’s more information about blended experiences:

• BOPIS: With BOPIS, customers have 24/7 access and the instant gratification of getting a product in hand without shipping costs. For retailers, bringing customers into the store to pick up their items increases the likelihood of making additional impulse purchases. 
• Virtual shopping: Virtual shopping lets customers get the exact product they want, even if it isn’t in the store’s current inventory. Retailers typically have a more extensive product selection online; a virtual shopping option offers customer convenience and prevents the retailer from losing the sale.
• Virtual clienting: Virtual clienting is similar to online shopping, but instead of being passive retailers, sales associates engage proactively with shoppers to greet them, answer questions and make personalized suggestions via chat or video calls, just like an in-store associate. Because these live reps can see what the customer is browsing, they can upsell and cross-sell, increasing sales revenue.

Online and physical stores are evolving

Brick-and-mortar retail locations won’t disappear anytime soon. Instead, physical stores will evolve to better meet consumers’ needs and incorporate online elements. To stay relevant and on top of offline and online purchasing trends, stores in both channels should understand why consumers choose to shop with them and ensure they cater to their needs with the best offerings, features and pricing.