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Why Businesses are Transforming from Cash and Carry to Click and Collect Business Model?  

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Click and Collect Model 

Cash and Carry business model was already fading away in the last few years. Customers, wholesalers and retailers all have started showing interest in Click and Collect services. But the major boom of Click and Collect services hit the business industry during Covid-19 pandemic.   

With the strict social distancing guidelines during the pandemic, the complete scenario of the ecommerce business and online shopping world has evolved. People were restricted to their residences and were not allowed to go and shop for basic amenities in the cash and carry stores. This led to an exponential increase in the Click and Collect stores, introducing a totally new shopping concept for the customers and retailers.  

Who Adopted The Click and Collect Business Model 

The click and collect business model is equally beneficial for both large-scale and small-scale retailers, wholesalers and suppliers etc. All across the globe following category of business owners have inculcated click and collect services in their stores and have given a boost to their retail businesses.  

  • Large scale retailers owning large network of stores across a wide geographical area 
  • Small scale retailers 
  • Local stores 
  • Regional stores and shops 
  • Pure-play retailers entirely relying on third-party for services  

The convenience, profitability and lower logistic costs have made click and collect everyone’s favorite. 

Order Anything Through Click and Collect Store 

The click and collect business model is so wide-ranging that it engulfs almost every item that you can think of purchasing. From everyday apparel to fashion accessories, from gadgets to furnishing, from groceries to electronics; hence you can order anything no matter what size or what price.  

Some wholesale food store owners and suppliers are offering click and collect services with specialized refrigerated lockers to store perishable goods till they are picked up by the customers. This is a true example of exceeding your customers’ demand in order to stay ahead of your competitors.  

The demand for click and collect service in on a constant rise. Retailers are constantly struggling to include more variety to their inventory in order to satisfy their customers and offer them a wide range of choices for the products they are interested in.  

Important Stats Showing the Rise of Click and Collect Model  

In the last couple of years, the click & collect shopping model has rapidly expanded. Though earlier this business model was forced by the pandemic restrictions, later on, both consumers and suppliers have shown equal interest in adopting this shopping solution.  

  • Market has seen an increased growth rate of 12.9% in the customer ship of click and collect stores.  
  • 80% of online sales were generated through click and collect model in the year 2018 by leading multichannel stores of UK. 
  • According to Digital Commerce 360, the percentage of the Top 500 North American eCommerce retailers offering curbside pick-up increased from just 6.9% in December 2019 to 43.7% in August 2020. 
  • In US, online shoppers spent $72.46 billion through click and collect shopping in the year 2020.  

Click & Collect Stores in UK 

By gauging the changing online shopping trends and ever-changing demands of consumers some UK retail businesses introduced click and collect concept way before the Covid-19 hit the world. Some of the retail stores who opted for click and collect stores are listed down with the years mentioning when they introduced the concept of click and collect:  

  • Argos: Used collection from store as part of its core business model 
  • Woolworths: In 2002/3 
  • Tesco Direct: In 2006 
  • House of Fraser: In 2009 

Reasons For Transforming From Cash & Carry to Click & Collect Store 

We cannot deny the fact that the expansion of click and collect business was mainly driven by the pandemic and the lock down. But this is also a fact that the manifold gains of click and collect service has made it a game changer. Out of its wide-ranging benefits here we have the key features why the world has transformed from Cash and Carry to Click and Collect stores. 

Reason#1. Convenience 

The foremost reason for anyone switching from cash and carry to click and collect is the added convenience. You can enjoy perks of both online shopping and picking-up your order at a convenient time and date. The pickup location is also selected as per the choice and convenience of the customer.  

Reason#2. Reduced Logistic Expenses 

Both customers and click and collect store owners save a great deal of amount that is otherwise lost in delivery expenses. Customers are not charged and additional delivery charges when they are picking up the order themselves. This business model helps retailers and click and collect store curtail their logistic expenditures involving delivery staff, vehicle maintenance, fuel charges, transportation vehicles etc.  

Reason#3. Flexibility 

Everyone desires flexibility. Customers hate late or missed deliveries. Click and collect provides a flexible schedule for order pickup as per the wish of customer. Moreover a number of pickup collection options offers additional flexibility. 

Reason#4. Higher Customer Satisfaction 

Click and Collect offers a one-in-all solution to customers; convenience, affordability, swiftness and less hassle.  The efficiency and effectiveness with which retailers can handle customer orders and complaints in their physical pickup store help them build a good customer-vendor relationship which is the ultimate goal of any business.  

Reason#5. Prompt Order Handling 

In today’s fast-paced world everyone is looking for quick and prompt business solutions. Click and Collect model offers a swift order processing option for both customers and retailers. Customers do not have to wait in long queues or wait for days and weeks to get their delivery. Similarly retailers and Click and Collect warehouse owners can manage and process orders more efficiently as no time is wasted in packaging and delivery processes. 

Click & Collect – The Future of Online Shopping 

Without a doubt you can say that click and collect business model is THE FUTURE of online shopping. With a growing number of retailers introducing click and collect stores have proven that it is the need of hour in order to exceed the demands of the ever-changing lifestyles. 

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