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Cash & Carry Vs Click & Collect – [Explained]

Cash and Carry Vs Click and Collect

Table of Contents

What is Cash and Carry? 

Cash & Carry is a self-service large store, where customers can buy groceries and goods at large quantities at comparatively cheaper prices than ordinary shops. Customers need to pay cash for their bought items before they take them away with them. It is best for small retail store owners, shopkeepers, small-scale suppliers and those who want to buy goods in bulk.  

How Cash & Carry Works? 

Cash & Carry business models requires cash upfront payments for all purchases before they are taken out of the store. These usually exclude all types of credit transactions and are required to match their sales with account books and actual cash receipts.  

Cash & Carry stores typically sell goods at comparatively lower prices because of following reasons: 

  • No frills format of stores 
  • Large volume of sales 
  • Low cost store location 
  • Lower inventory carrying costs 

Advantages of Cash and Carry 

Every business model comes with its own set of benefits and advantages. Some of the key advantages of the cash & carry business model are mentioned here. 

1. Prevents Over Spending 

One of the major advantages of cash & carry stores is that it prevents a customer from overspending. Customers will spend only the amount of cash in hand so this helps to stay within your means and prevents from spending excessively.  

2. Saves From Security Breaches 

As customer pays through cash at cash & carry stores, it protects customers information from any kind of security breach.  

3. Expenses can Be Easily Tracked 

With receipts in hand one can easily keep record of the purchases made and keep an account of the expenditures.  

4. Discount Deals  

Many cash & carry stores offer attractive discounts and sale deals on bulk buying. One can save big by availing these discount offers at cash and carries.  

5. Convenience 

Convenience is one of the top advantages of cash and carry super stores. You go, pick what you need and pay. There is no waiting for days or weeks for your ordered item. You get your desired product immediately without any hassle. 

Disadvantages of Cash and Carry

Along with their various advantages cash and carry models also have some shortcomings. some of the disadvantages of cash & carry business model are listed down here. 

1. Limited Market 

Carrying cash is not very convenient to many people due to various reasons, thus this business model declines the number of potential customers who don’t feel easy to carry cash with them. With changing lifestyles and latest technologies many people prefer paying through credit-cards and debit cards limiting the market of your cash and carry stores.  

2. No Large Purchases 

It is difficult to buy high ticket items because customers usually do not carry that much of cash with them. This limits the purchases of large items or bulk goods.  

3. Fraud 

Businesses dealing with only cash payments may encounter fraud in the form of counterfeit money and manipulation of cash flows. Despite strict checks and balance during payments; one cannot rule out the chances of fraud and scams during large amount of cash handling.  

4. Theft 

Cash and carry stores usually face a great threat of theft and robbery. Cash and carry business model declare clearly that the owner must  be having a lot of cash on hand; this proposes a great deal of risk. Also its easier to manipulate and maneuver loose cash and money by any employee or business partner. 

5. No Delivery Service 

When purchasing from cash and carry stores, customer needs to take away the goods that they have bought along with them. Cash and carry businesses do not offer delivery services which causes inconvenience at times.  

What is Click & Collect? 

Click & Collect, also known as curbside pickup, is a relatively new  e-commerce model in which the customers purchase or select items online and then pick their ordered products from a physical store or a centralized collection point.  

Click and collect is a concept where consumers make online purchase and then choose to collect their purchased item at a pre-selected location. Retailers offering click and collect services have an edge over their competitors by bringing convenience, affordability and efficiency together.  

How Click and Collect Works? 

The click and collect business model is a hybrid, omnichannel business model that offers the convenience of online shopping while providing customers with the leverage to go to the store and collect their items at a time and date convenient for them. 

The key features of Click & Collect store is that it curtails the cost of delivery and provides a swift and convenient pick up option from any nearby location. 

The click and collect business model can be used widely by any business type however it is being used largely for ordering fashion and home goods; alternative food supplies; grocery items, car dealers, household supplies etc. 

Click & Collect Pickup Options 

Depending upon the type of click and collect retailers can select from multiple pickup options available. Some of the order collection options that retailers offer include: 

  • Picking up your order at the retail store outlet or physical store 
  • Pickup of the purchased item at a locker 
  • Pickup the purchase at curbside or parking lot 
  • Picking up from a predefined collection point 

Advantages of Click and Collect 

Click and Collect is becoming very popular equally amongst customers and retailers due to its multifold advantages. Lets have a look at various advantages that this business model offers; 

1. Reduced Delivery Costs 

As customers are required to pick up their order from specific locations, this service can reduce the additional delivery charges that you need to pay while ordering from any other online store.  

2. Convenience  

Customers find this service more convenient as they do not have to wait for their ordered products at home. They can order online and will just have to pickup from store locations which is rather convenient than waiting at home for the delivery of the order.  

3. Saves Time and Money 

Click and collect offers a great solution where customers can just go and pick up their order from the designated location saving time and money.  

4. No Waiting in Long Ques 

From customer’s perspective, click & collect is convenient and it saves you from waiting for a longer duration in long queues. It’s quick, easy and fast and saves you from unnecessary hassle.  

5. Pick Up Flexibility 

Click and collect stores offers flexibility; customer can select date and time of order pickup as per his convenience.  

6. Omnichannel Strategy 

It reinforces the omnichannel strategy, that helps you create a seamless experience for customers across all the channels through which you sell including online and offline order service points.

7. Higher Customer Satisfaction 

Click and collect offers a one-in-all solution to customers; convenience, affordability, swiftness and less hassle. Giving customers a satisfactory shopping experience always proves to be profitable in the long run.  

8. Higher Basket Value 

While customers save on delivery charges they tend to add more items in their shopping cart; increasing sales.  

9. Lower Logistic Costs for Retailers 

As delivery and courier charges are reduced because of self pickup options; retailers require less warehouse and courier resources.  

Disadvantages of Click and Collect 

1. Security Breach 

As customers are using credit cards and online transactions to pay at the click & collect stores there are fair enough chances of security breaches. Personal information is leaked out and misused in many cases.  

2. Additional Labor Required 

From retailers point of view; anyone setting up a click and collect store would have to employ extra workforce for handling order packaging and handling.  

3. Regular Monitoring of Inventory  

Regular monitoring of inventory is required to keep your supplies updated other wise your business can fail miserably if it does not update the inventory properly.  

Click and collect offers an ideal solution for both retailers and consumers; where customers enjoy a great and convenient shopping experience and retailers have a lucrative opportunity to upscale their sales by cross-selling and up-selling. 


Is there any additional charges of fee for click and collect service? 

Click and collect services are free, you just have to pay for the purchased items. 

Can we pay cash at click and collect service? 

Click and collect services require online payment and transactions. You need to clear payments before your order proceeds for pickup. 

Is there any additional charges of fee for click and collect service? 

Click and collect services are free, you just have to pay for the purchased items. 

Can we pay cash at click and collect service? 

Click and collect services require online payment and transactions. You need to clear payments before your order proceeds for pickup. 

How long do I have to wait to get my ordered items? 

Most click-and-collect services work 7 days a week. You can select your desired time and date for pickup of your ordered products.  

What happens if I miss my collection date? 

Most click-and-collect service points offer after-sale support programs. You can always contact the customer services representative and ask for assistance to deal with any such case.  

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