The new rules of phygital shopping

Vodafone Business and Inside Small Business have released the 2026 SMB Playbook to help Australian small and medium-sized businesses (SMBs) facing uncertain times. This blog explores some of its features and findings.

Part 1 of this blog explored the changing Australian business landscape, focusing on sales.

In part 2, we looked at the importance of a mobile-first website – because every shopfront is the same size on a smartphone.

Now, let’s talk about removing barriers for today’s customers by blending the physical and digital – and share a few tips to help you get started.

Don't miss out – get actionable insights and tips in the full 2026 SMB Playbook.

Mixing it up

In 1979, inventor Michael Aldrich connected a modified TV to a transaction processing computer over a landline. Effectively, he created an early form of online shopping, complete with a user interface – a novelty for its time.

But modern e-commerce has changed. Novelty has been replaced by an expectation of convenience. And with smartphones, customers carry this expectation with them.

But there’s also an opportunity here for SMBs that starts by recognising the blending of physical and digital shopping behaviours. It even has a name – phygital shopping.

What is phygital shopping?

Phygital shopping refers to the connection of online and in‑store experiences.

For example, say a customer walks past your shopfront, sees an offering they like, and looks it up online. How well does your site match the expectation set by your shopfront? Can they find that product quickly?

What about the reverse? Say a customer stumbles onto your site, likes what they see, and decides to visit in person. Do they know where to find what they’re after?

If the answer is yes, then you’re doing phygital shopping right.

You’re simplifying buying

Enabling phygital shopping involves removing small boundaries between what’s in store and what’s online. You can think of it as making a shop floor plan or an ecommerce page – when you reduce the number of (literal and figurative) steps between the customer and their end goal, they’re more likely to buy.

Smoothing your selling points

Once you start implementing phygital shopping strategies, it’s possible to follow the buyers’ journey across both realms.

For example, say you promote a product on social media. Your promotion generates traffic, but no spike in online sales. Does that mean your efforts failed?

Not necessarily. Look at where your website visitors come from. Are people finding your product online, then leaving after checking reviews or the store location? They might want to see it in person rather than have it shipped. Offering in-store pickup could help land the sale before they even pick up their keys.

Here are some more ideas:

Publish a store map online that highlights the location of popular products.
Pre-record explainer videos and have them displayed directly on your product pages.
Use QR codes in-store to direct customers to trusted review sites, booking platforms, or other online conveniences.

Small changes like these can make a big difference by simplifying the sales process.

Phygital selling enhances the e-commerce experience