July 9, 2019
Buying and selling are continuously evolving as a process which aims to make shopping easy and fun. However, the most painful part of shopping is the delivery of goods. The Internet has expanded the reach of e-commerce to a wider customer base across the globe and as per published internet statistics, the global e-commerce revenue is expected to show annual growth of 8% CAGR from 2019 to 2023. It will create a market volume of USD 2,73,4414 Million by 2023.
On the other contrary, there is a hybrid e-commerce model surfacing in which the buyer makes his purchase online by selecting items of his choice and picks them up from a store or centralized collection center. It is known as ‘Click and Collect’ system and many people believe this could be the future of e-commerce or e-retailing. Globally, ‘Click and Collect’ does not have uniform results and in many countries, it is still in the very naïve state.
Through this blog, Kirana King tries to highlight some of the benefits of ‘Click and Collect’ model to both retailers and buyers, which predicts its bright future.
Reduces the Cost Of Delivery & Reverse Logistics For The Retailer
With ‘Click and Collect’ the extra cost incurred due to shipping the good and reverse logistics can be avoided and consumers can not only save money but walking to the nearby collection center proves good for health also.
Generally, this cost was in addition to the price of the good, which results in the lower purchase after the interest shown by the customers. As per a study by McKinsey on ‘Click and Collect’, it will help reduce cost by as much as 30%, making it a lot more lucrative and viable investment for the retailers.
Opportunity to Motivate Consumers for Additional Purchase – More GMV
A survey result of Walmart shows that about 50% of Walmart’s click and collectors shopped at the store for additional items. In order to collect the purchased goods, consumers have to visit the nearest store or the collection center. The opportunity comes to the retail shop, in a way that they can offer more products with the customized options on the visit by the consumer based on their buying behaviour. Thus, retailers such as Kirana shops can easily motivate the consumers to make an additional purchase at the time of order collection.
Buyers Can Take Delivery at Their Convenience
Suppose your order arrives at your home and you are not there, the delivery has to be made again. This increases the delivery time and the cost of the retailer in logistics and reverses logistics. Now, with the click and collect option available to you as a customer, consumers can fix their time and place of the nearby Kirana store or collection center.
Saves Time for the Consumer
Let us consider that a consumer has come out for shopping and goes to a retailer where he does not find what he is looking for then he has to go to another store. But, with the click and collect model, he can choose items online and collect from his nearby store. This way even consumers save time and stay away from the physical hassle of traffic and market.
Guarantee for Safe Delivery of the Ordered Merchandise
In many instances, the goods delivered through the shipping / logistic agencies are found broken or damaged. By adopting ‘Click and Collect’ model the consumer can first ensure that the quality of the products purchased is up to the mark and also there will be no worry about the safe delivery of the goods.
‘Click and Collect’ is transforming how e-commerce works and overall retail business is changing. In the following years, there are going to be a lot more adaptations of the click and collect model too. However, it has shown great promise and a great way for retailers to increase their GMV’s. Internet reports prove that Walmart leads click and collect model beating the online leader Amazon. For e-commerce companies click and collect model comes as a great opportunity to reduce the losses they make during out of the logistics and re-logistics.
Similarly, for Kirana stores, Kirana King is strategizing to bring a special version of the ‘Click and Collect’ model to increase the business and revenue of its network stores. At the same time, it will also help improve the grocery shopping experience for the consumers.