Question

A. Provide an example of a brick-and-mortar retail location and an example of an online retailer. In a comparison of the two retailers, provide two advantages and two disadvantages for each.

B. Explain how the brick-and-mortar location you used above has responded to online shopping competitors (in general). Make sure you address the specifics of HOW they have responded by giving at least two examples of what they have done.

Answer 1

Brick and Mortar retail location is basically a traditional method of business located at the street-side. They provide their products to the customers directly with in a store which is owned by or rented by the business.

Example : A grocery store located near by a customers home where the customer and the owner of the grocery store can communicate about the products face to face.

Advantages :

• Local Attraction :- Customers mostly prefer to buy products and avail services from a domestic retailer when such products or service can be availed from both online as well as from a near by retail store. Hence customers can research about products and compare them with the similar products via online and fulfill their purchase from the brick and motor retail location which is very customer friendly and attract the customers.
• Trust :- Products from online sites can not be trusted much where as, if we buy a product from a local retail shop the factor called trust can be highly involved. Trust can be made by the physical presence of such shop.While making payments, customers can be most secured. Customers prefer to buy those products which has been recommended by an actual salesman.

Disadvantages :

• Start up and overhead cost :- They need huge capital investments to initiate the business in order to maintain and develop.some other cost such as insurance fro the firm, related taxes for the property, inventory cost, cost related utilities etc.
• Rent :- A space where the business has to be done may be taken for rent and this came to be the most huge expense, brick and mortar retailer had to pay.

Online retailers are those who send their products via online websites.

Example : Amazon.com, Flipkart, Aliexpress, Walmart, eBay etc.

Advantages :

• High reach for sales and great access to the customers.
• Business operating cost will be very cheap.

Disadvantages :

• Customers may not get the products on time, as there may be delay in delivery.
• There are more chances of fraud in case of online retailers.

Examples for how brick and mortar retail location responded to online shopping competitors:

Online retailers developed due to technology of mobile and provide the services to everyone's house. But there is no factor of listening to the needs and opinions of the customers. Here in this case, there comes the importance of brick and motor retail locations. They used to listen to the consumers and try to satisfy their needs and hold a good customer relationship.

• A wide range of products offered via online :- Let us take an example of Costco. They have personal store inventory. Then also they responded to the on;line retailers by providing 80-90% of different products through their website. They used to ship the products through 3 depots. Like this they includes their sales and compete with the online retailers.
• Walmart was a retail shop. When online retailers arise, Walmart initiates their process of selling products through its online website. Their website is featured by facilities such as same day delivery, cash delivery, ship from retail store etc. They ensure timely delivery for their online sale products. About 90% of customers showed satisfaction for the services of Walmart. As a result, Walmart came as one of the best online best retailer.