webrooming

What Is Webrooming? Webrooming In A Nutshell

Webrooming is a shopping process where the consumer browses for a product online before purchasing it in-store. Webrooming is the reverse of showrooming, where a consumer visits a brick-and-mortar store to inspect the product before purchasing it online for a lower price. Webrooming, therefore, describes the consumer practice of researching products online and then purchasing them from a physical store.

Understanding webrooming

Studies show that webrooming is most common for products such as appliances (58% of all purchases), electronics (54%), and apparel (49%). The practice is mostly utilized by Gen X consumers, who perform detailed product research online before buying, and Millennial consumers, who rely on devices to improve their in-store experience.

What causes webrooming?

Here are some of the key drivers of webrooming:

  • Shipping cost – some consumers purchase in-store because they want to avoid having to pay for shipping.
  • Tactile experience – others want to be able to see and touch a product before they commit to purchasing it. Somewhat counterintuitively, the desire for a tactile experience is also a driver of showrooming. 
  • Store availability – according to online publication Small Business Trends, some 42% of consumers check store inventory levels online before visiting a store to avoid wasting a trip. In other words, their primary intention is to purchase in-store.
  • Product returns – a certain percentage of consumers also want to be able to return products to a physical store. In general, returning a product in-store is considered easier than posting an item back to an online retailer.
  • Impatience – webrooming also occurs because consumers do not want to order online and be forced to wait for the product to be delivered.

The future of webrooming

Critics of the shift toward eCommerce believe that practices such as showrooming force bricks-and-mortar stores out of business. However, it may be that the retailers who suffer in this environment are those that are caught out by rapidly changing consumer preferences.

To survive in the modern retail industry, businesses must allow consumers to easily switch between online and offline purchases. This means catering to a mixture of showrooming and webrooming across stores, apps, websites, and any other channel a consumer considers when making a purchase decision.

Webrooming seems to have strengthened in the past years. While showrooming, on the other hand, was reported by only 57% of consumers. This data indicates that the future of webrooming – and by extension, physical retail stores – is not as uncertain as some critics propose.

Key takeaways:

  • Webrooming describes the consumer practice of researching products online and then purchasing them from a physical store.
  • Webrooming tends to be concentrated on appliances, electronics, and apparel. In general, the practice is caused by avoidance of shipping costs, the desire for a tactile experience, store inventory levels, easier product returns, and impatience.
  • Some propose that showrooming and eCommerce will make webrooming and bricks-and-mortar stores unviable. However, data indicates that webrooming is more popular and that retailers should incorporate a mixture of both to cater for consumers.

Read Next: Showrooming, Webrooming vs. Showrooming.

Main Free Guides:

Connected Business Phenomena

Bundling

bundling
Bundling is a business process where a series of blocks in a value chain are grouped to lock in consumers as the bundler takes advantage of its distribution network to limit competition and gain market shares in adjacent markets. This is a distribution-driven strategy where incumbents take advantage of their leading position.

Decoupling

decoupling
According to the book, Unlocking The Value Chain, Harvard professor Thales Teixeira identified three waves of disruption (unbundling, disintermediation, and decoupling). Decoupling is the third wave (2006-still ongoing) where companies break apart the customer value chain to deliver part of the value, without bearing the costs to sustain the whole value chain.

Unbundling

unbundling
Unbundling is a business process where a series of products or blocks inside a value chain are broken down to provide better value by removing the parts of the value chain that are less valuable to consumers and keep those that in a period in time consumers value the most.

Disruptive Business Models

disruptive-business-models
As pointed out in the book “Unlocking The Value Chain” by Thales Teixeira, business model disruption has followed three waves: unbundling (1994-99), disintermediation (2000-05), and decoupling (2005-onward). Today what’s disrupting the business world is the wave of decoupling. That consists in breaking the customer value chains by identifying valuable activities that can be performed by the decoupler, which can capture a good chunk of the business value from incumbent companies.

Disruptive Innovation

disruptive-innovation
Disruptive innovation as a term was first described by Clayton M. Christensen, an American academic and business consultant whom The Economist called “the most influential management thinker of his time.” Disruptive innovation describes the process by which a product or service takes hold at the bottom of a market and eventually displaces established competitors, products, firms, or alliances.

Types of Innovation

types-of-innovation
According to how well defined is the problem and how well defined the domain, we have four main types of innovations: basic research (problem and domain or not well defined); breakthrough innovation (domain is not well defined, the problem is well defined); sustaining innovation (both problem and domain are well defined); and disruptive innovation (domain is well defined, the problem is not well defined).

Innovation Loop

types-of-innovation
According to how well defined is the problem and how well defined the domain, we have four main types of innovations: basic research (problem and domain or not well defined); breakthrough innovation (domain is not well defined, the problem is well defined); sustaining innovation (both problem and domain are well defined); and disruptive innovation (domain is well defined, the problem is not well defined).

Business Competition

business-competition
In a business world driven by technology and digitalization, competition is much more fluid, as innovation becomes a bottom-up approach that can come from anywhere. Thus, making it much harder to define the boundaries of existing markets. Therefore, a proper business competition analysis looks at customer, technology, distribution, and financial model overlaps. While at the same time looking at future potential intersections among industries that in the short-term seem unrelated.

Business Scaling

business-scaling
Business scaling is the process of transformation of a business as the product is validated by wider and wider market segments. Business scaling is about creating traction for a product that fits a small market segment. As the product is validated it becomes critical to build a viable business model. And as the product is offered at wider and wider market segments, it’s important to align product, business model, and organizational design, to enable wider and wider scale.

Innovation Funnel

innovation-funnel
An innovation funnel is a tool or process ensuring only the best ideas are executed. In a metaphorical sense, the funnel screens innovative ideas for viability so that only the best products, processes, or business models are launched to the market. An innovation funnel provides a framework for the screening and testing of innovative ideas for viability.

Four-Step Innovation Process

four-step-innovation-process
A four-step innovation process is a simple tool that businesses can use to drive consistent innovation. The four-step innovation process was created by David Weiss and Claude Legrand as a means of encouraging sustainable innovation within an organization. The process helps businesses solve complex problems with creative ideas instead of relying on low-impact, quick-fix solutions.

History of Innovation

innovation
Innovation in the modern sense is about coming up with solutions to defined or not defined problems that can create a new world. Breakthrough innovations might try to solve in a whole new way, well-defined problems. Business innovation might start by finding solutions to well-defined problems by continuously improving on them.
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