16 october

eRetail / Part 1: Retail in transition - Are cross-channel services the answer?

The constant availability of goods online is causing retailers concern. Many are responding to the "change in retail" with cross-channel services.

There is currently a shift from the retail buyer to the selective buyer. While the retail buyer was loyal to their retailer, brand and shop and made enquiries, sought advice and then bought there, the selective buyer has a completely different buying behaviour.

In times when the Internet is always available, customers buy very spontaneously wherever they want. The decisive factor is not only where the product is available at the best price, but also when the customer can hold it in their hands, what information or reviews can be obtained where and how easy it is to return it if they don't like it.

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This is where bricks-and-mortar retailers can start to regain lost ground. It is currently assumed that declining sales can only be offset by increasing sales with cross-channel services.

Cross-channel services: Order, pick up, buy, reserve?

But opinions differ on the description of the services alone. There is no uniform definition of what is meant by such a service. Click&Collect can mean, for example, something as different as

- Order and pick up
- Buy and collect
- Booking and collection

But according to a recent study by ECC Cologne1 , 65 % of the shoppers surveyed can't relate to this term anyway - they've never heard of it. It therefore seems necessary to present and explain the services that are now increasingly being offered to customers in a very transparent manner.

My bookseller understands Click&Collect to mean that I choose my favourite book in his wholesaler's webshop and then have the book delivered to his shop overnight. At this point, I have not yet concluded a purchase contract. So the next day I can take my time to look at the book and try it out. Only if I like it do I buy the book, which is then invoiced via the POS system with connected merchandise management (provided by the wholesaler) and at the same time leads to a reduction in stock.

With other retailers, the conclusion of a purchase via Click&Collect leads to a purchase contract, which usually even results in the payment of the purchase price at the checkout.

Legally speaking, these are two completely different processes with the same name. Now, in practice, it hardly makes any difference which
model comes into play, as they all orientate themselves on the retail leader Amazon and take back purchased goods without ifs and buts and refund the purchase price without deductions.

But in my work I have also come across retailers whose aim is to put as many hurdles as possible in the way of a return. That's good advice after all,
if you take a closer look. If you don't want to do that or it's too much effort for you, just buy from Amazon and the like.

It is therefore important to describe the services offered very carefully so that the customer understands what is being offered.

1 The ECC Cologne (E-Commerce Centre) is a research and consulting initiative at the Institute for E-Commerce in Cologne.
Retail Research (IFH) at the University of Cologne

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