Click And Mortar

We often hear of small retail stores serving a niche market saved from bankruptcy by converting themselves into a click and mortar business. Combining the best of both worlds, even big box and department stores such as Macy’s have both a physical store and a profitable online business as well. As more and more retailers offer “free” shipping, many analysts wonder how long brick and mortar stores will be around.

A click and mortar business gives customers the opportunity to see products first-hand and do things such as trying on shoes and clothing before you place an online order. If you are vacationing in Florida or Europe, for example, and find a great pair of flip flops or boots, you can continue to order additional pairs online once you get home. With a website and an online shopping cart, businesses can sell products 24/7 and have far lower costs of sale than what is required to run a physical store. And with search engine optimization using the right keywords, customers will hopefully find your business lickety-split.

Managing inventory levels is an ongoing challenge when running a click and mortar business. You don’t want to have too much on hand tying up all your cash, and you don’t want to run out either. Some companies place a limit on how many online orders they will take for a particular product. One can also arrange for orders to be shipped directly to your customers, but this will eat into your profit margins.

A little shop in the tourist area of Concord, Massachusetts was about to go out of business being in a niche market selling small toy soldiers. They decided to also start selling their products online, and with a very attractive website and shopping cart, plus contributing to blogs and social media, in a few months they became profitable once again. Score one for the little guy.