With e-commerce continuing to grow and many brick-and-mortar shops closing down, some small businesses may be wondering if it is worth having a retail shop or if they should open an online shop. In this article, we will look at the pros and cons of each shopping experience. With this information and the information on your products and target market, you will be able to choose which purchasing experience to offer your customers.
The pros of retail shopping
- Test and try products: Customers can engage with the product and if you offer samples to test or try the product before they buy it. They see what they are purchasing and if it will fulfill the needs they have.
- Use all their senses: When a customer enters your shop, they are using their senses to experience the shop. By having beautiful displays and a good shop layout, you can encourage our customers to buy from you.
- Have human interaction: If your customer has some questions about your product, they can ask questions and get feedback straight away. They are also able to get instructions on how to use the product. You must hire people who want to help your customers and give them the best shopping experience ever.
- Get instant gratification: After they have purchased the product they can take it home. They don’t need to wait for shipping or for you to process the order before they get the product they bought.
- Able to return products easily: Customers can come back to the store and return the product directly to the company and get a solution quickly.
- Create a community: By hosting in-store events that feature your products, the business can build connections with the local community. They could also give to local charities and be a champion for the local community.
The cons of retail shopping
- Pay high overheads: When you own a brick-and-mortar shop, you will need to pay rent or a mortgage, security, and salaries. If you are in a shopping centre, besides rent, you may also need to pay a portion of your sales to the mall.
- Affected by factors beyond your control: You will not be able to control the parking availability, the crowds, the weather, or any other unforeseen circumstances.
- Carry limited stock: Depending on the size of your shop, you will not be able to carry a large amount of stock.
- Feel pressure from staff: With the shop staff hovering over you while you shop you may feel forced to purchase a product that you may want to think about.
The advantages of an e-commerce store:
- Available to almost everyone: When you shop online, you don’t need to worry about the accessibility of your shop. Some people with physical disabilities will be able to shop online. You are also open to a global audience so your market might be bigger.
- No pressure: With little to no human contact, you will feel less pressure to purchase if you are just browsing the store.
- Access research and reviews: When customers see your product online, they can read through reviews and if they are good may be encouraged to purchase a product. They may also use your website to research what they need to solve their problem and if your site is useful may purchase the product from you.
- Offer a broad selection: It is easier to offer a wide selection of products online.
- Less inclined to be affected by elements that are outside of their control: Customers don’t need to get transport to get to the store, and the weather is less likely to impact their purchasing plans.
The disadvantages of an e-commerce store
- Compete with other vendors: Your competition is a click away. Customers can check the price for a product from several different vendors and choose the one that best suits them.
- Need technical expertise: You need to have technical expertise to set up your online store or get someone to help you. You also need to have customers who are comfortable with using technology and buying online.
- Struggle to help customers: You may need to set up a chatbot or email which customers can use to ask questions but many times they will move on to your competitor if they struggle to purchase from you.
- Deal with shipping: If you aren’t selling a digital package, you will need to deal with shipping products to customers. You will need to package them appropriately and contact couriers to collect and deliver your parcel. You will also need to deal with damaged or broken products if the products aren’t packaged or handled properly.
So, which should you offer?
Well, it comes down to who your customer is and what product you are selling. If the product is unfamiliar to your customers, then they would prefer a retail experience because they will be able to touch, feel, and look at the product. If the product is familiar to consumers, then they will be more comfortable with an online shopping experience.
You may also consider a hybrid experience where you get the customer to buy in a retail environment and reorder in an e-commerce store. By keeping these considerations in mind, we hope you can make a better-informed decision on which experience would best suit your small business.
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