Online shopping is moving onwards and upwards.Consumersnow canbuy basically everythingwithout ever setting foot inside a physical store. And when it comes to e-commerce, no onecan escape the shadow that Amazon casts.But that does not mean allbrick-and-mortar retailers are getting crushed. 

The shift in the consumer’s buying habitforces retailers to think outside the box. Is e-commerce the only way to go? Is brick-and-mortar coming to an end?

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How Costco deals with getting Amazon-ed

Costco is just one among many wholesale retailers that got “Amazon–ed”. And their journey to achieving aseamless customer experience viathe omnichannelmethod is bothurgent and extremely complicated. 

Even though e-commerceis believed to be the way to go toremain competitive in midst of the price warin the retail sector, Costco’s goal is not to completely transform their business model to e-commerce.

According to Galanti, Chief Financial Officer of Costco, e-commerce certainly plays a critical partbut they do not want to lose the loyal customers who usually visit their stores. Additionally, combining both offline and online channels probably helpsattract and retain newclients, especially Generation X and Z buyers. 

Galanti highlights that while the revenue of online channels is growing at 32.3% annually, it accounts for only 5%of total sales. 

Read more: How customers embrace omnichannel

The Costco way to e-commerce

Instead of deploying e-commerce on a wide scale, Costco chose to approach it on a limited basis with a strong focus on nurturing the customer’s loyalty and maintain the in-store visits with targeted promotions and BuyOnline, Pick-up in Store programs. The positive results they have achieved so far are:

• Online grocery delivery has gained tractionby utilising service froma third party, such as Instacart orShipt, to fulfil the promise of “same-day” delivery for fresh produce
• Diversify the “limited and luxury” categories currently availableonline, such asjewellery, electronics, and handbags
• Push sales for seasonal products which used to have a short life cycle if sold only in-store

By enhancing its presence both online and offline, Costcohas seen some positive changes in bothprofit and warehouse traffic.The BOPIS method has also brought in various perks, particularly when the customers are in the warehouse to pick up their online orders, they tend to spend even more than what they originally planned for.

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There is no definite answer on whether e-commerce is the only way to go. In the customers’ point of view, they feel better when they walk through the shelves. This means the business should incorporate online method with the shop floor process to achievehigher revenue and a more sustainable future.

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