Athanasios Gkanos Unit 8 15/05/2014 D1 Evaluate the use of e-commerce in a ‘brick and click’ organisation Introduction On this task I will evaluate the use of e-commerce in Treading Ahead ‘bricks and clicks’ organisation. What is a ‘bricks and clicks’ organisation Bricks and clicks is a term used in business which indicates that business has shops or outlets (bricks means physical presence) and also deals online (clicks means internet presence). The brick part of Trading Ahead organisation allows the customers to visit the store and try some of the products. Also in case that a customer needs to return something, the retail store will accept the item and give the refund to the customer. The customer can buy on spot anything they tried and liked from Treading Ahead. The clicks part of Treading Ahead organisation gives access to the customer in a big catalogue of the organisation’s products. The customer can look through the catalogue and order the product that they liked. If the product is not in stock they can still make an order and receive the item whenever it is available. Items that are not available to look in the store may be available on the catalogue online. Having both retail and online presence is very beneficial to the customer for the ease of use. Some customers may not be confident buying a product online and they would like to visit the store. On the other hand some customer may not be able to visit the store and purchase a product so they want to order it online. Having both ‘bricks and clicks’ presence has a big advantage on the customer services. For Treading Ahead which is a footwear store, some products may only be found online. Customers normally want to try Athanasios Gkanos Unit 8 15/05/2014 shoes before buying therefore there is need for both retail and online presence. Moreover customer benefits from the online presence of Treading Ahead by getting discounts and free deliveries. Benefits of Bricks and Clicks Convenience - the customer may not work during normal working hours but, if they still want to order product or look up product they need so they can go to the online catalogue and then order what they need. They can go to a store and put hands on a product to ensure it is what they need. Then, order it from the store or order it later online; whichever is most convenient. customer can pay bills online customer can check stock online customer can set-up delivery online customer can come into the store and dispute a bill they saw online customer can come into the store and pick-up a will-call order they placed online Disadvantages of Bricks and Clicks Rent - Leasing commercial space is among the largest expenses offline business owners pay. And it isn't cheap, ranging anywhere from £20 to £80 per square foot, and maybe more in big box shopping malls. Employee Costs - Offline businesses need employees to perform the functions of the company, be they service or product based. For instance, a retail store needs people to ring up sales, stock inventory and clean the facility. A service-based outfit requires Athanasios Gkanos Unit 8 15/05/2014 people to perform the service offered. At the very least, it will have a payroll. Startup and Overhead Costs – Brick and click businesses typically require larger investments to start and maintain. For instance, it can run in the tens of thousands of dollars just to acquire a franchise. Other sizable costs include utilities, business insurance, property taxes and merchandise inventory. Locale Limitations – Brick and click businesses can reach only so many customers unless they are a major player in their industry. If your intention is to serve only local clients, this may be fine. But if you aspire to have a national or even global presence, a fixed location and the costs that incurs may lessen those chances.