Brick and mortar business model refers to the physical existence of an organization in a building. It enables one-on-one interaction between customers and retailers. It constitutes either one outlet or several branches. Customarily, this model only accepts checks, credit cards, and cash for purchase (Wirtz et al., 2016).

Brick-and-mortar stores mainly embrace traditional advertisement forms to market namely billboards, newspapers, radio, and television commercials. The fact that customer service exists in the brick-and-mortar model allows a customer to have a personalized experience when they have questions.

Consequently, the instant gratification that customers crave is fulfilled, working to its advantage.  However, warehousing of inventory, labor, property taxes, and rent are just but a few operating expenses incurred with this model.

Brick and mortar business model

E-commerce involves buying and selling products on the internet by employing websites and virtual shopping carts. Orders are remotely entered then customers receive the goods via the mail later. Sale transactions here are remotely exchanged, with the use of PayPal being a case in point.

E-commerce has more payment methods (Laudon & Traver, 2016). Therefore they enjoy Omni-channel flexibility, where they advertise on social media, get in touch with their customers through the phone, and use mobile applications to aid shoppers in discovering goods and services. As it operates in an online space, digital advertising and social media are practical and common forms of marketing.

This model also tends to have a lot of stock in the warehouses as opposed to small brick-and-mortar retailers that have a limited amount of space. Unfortunately, clients would instead abandon their carts if they have to wait or search for a response in case they have a question (Laudon & Traver, 2016). Despite the realization of revenue during initial growth periods, competition, expensive shipping, and return expenses among other factors reduce profitability in the long run.

E-business is a commercial process that involves sharing information on the internet related to bought and sold products (Rust & Kannan, 2016). It is a superset of e-commerce, involving procuring goods, educating customers, and searching for suppliers. CRMs, ERPs are used to connect various business processes.

Furthermore, it covers internal methods such as the development of products, inventory, and risk management. It involves the use of either intranet, extranet, or internet and entails managing logistics, and surveying the market. Besides its usage in the business to a business transactions, it includes pre-sale and post-sales efforts.

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