A Winning Partnership

According to a report by shopping app Oberlo, the global e-commerce growth rate for 2023 is forecast at 8.9%, bringing global ecommerce sales worldwide to US $5.9 trillion, a 1.8% increase from 2022’s growth rate. This trend has been bolstered by fast, affordable, and reliable delivery options with many brands same day or next day delivery options and customer friendly product return principles.

While some market analysts wondered whether e-commerce would spell the end for physical retail, in fact the growth of e-commerce and physical retail turned out to complement each other nicely. By integrating online and offline channels, retailers have been able to leverage the strengths of both to provide a seamless and enhanced shopping experience.

Here are the key benefits of each side of the partnership.

Increased reach and a wider customer base

For a start, e-commerce provides retailers with an additional channel to reach a wider audience. Online stores can attract customers from different geographical locations, allowing retailers to expand their customer base beyond the limitations of physical stores. This increased reach can also generate brand awareness and drive foot traffic to physical stores.

Omnichannel retailing

Many retailers have embraced an omnichannel approach, which combines online and offline shopping experiences. Customers can browse products online, make purchases, and choose between home delivery or in-store pickup. This integration of channels provides convenience and flexibility to customers while allowing retailers to leverage their existing physical infrastructure. 

Showcasing products and brand experience

Physical retail stores offer a tangible experience that cannot be replicated online. Customers can see, touch, and try products before making a purchase, which can be particularly important for certain product categories such as clothing. Physical stores also serve as a platform for retailers to create immersive brand experiences, engage customers through personalised interactions, and build loyalty.

Customer service and that precious human touch

While e-commerce offers convenience, physical stores offer in-person customer service and support which is hard to replace. Retail staff can offer guidance and provide recommendations to customers, enhancing the overall shopping experience. Physical stores also facilitate returns and exchanges more easily, reducing the hassle for customers.

‘Click and mortar’ strategies

Some online only retailers have recognised the value of having a physical presence and have adopted ‘click and mortar’ strategies. They either open standalone stores or partner with existing brick and mortar retailers to showcase their products. This approach combines the benefits of e-commerce, such as online marketing and inventory management, with the advantages of physical retail, such as customer engagement and immediate product availability.

Cross promotion and marketing synergy

Finally, e-commerce and physical retail can reinforce each other through cross promotion and marketing synergy – meaning retailers can promote their online presence in physical stores and vice versa, driving traffic between the two channels. For example, physical stores can display QR codes or provide incentives for customers to visit their website, while online stores can promote exclusive in-store experiences.