How Do E-commerce Stores Benefit Buyers And Sellers?

Do you have a dilemma whether you should run a brick-and-mortar or an online store? Well, you are not the only one wondering which is the better option.

Both brick-and-mortar and e-commerce stores are giving a neck and neck competition to each other. Physical stores account for 94% of all retail sales, but the revenue and popularity of e-commerce are by no means negligible. In fact, it is expected to reach $4 trillion by 2020. 

So, what is going to happen next? Is e-commerce going to replace completely the traditional retail stores or is it going to be side-lined by brick and mortar stores?

The info below, curated by the team at RedBrain shows that the US retail giants collect considerably higher revenue from their physical stores. However, their e-commerce sales are on the constant rise. 

Meanwhile, since shopping is all about buyers, it is important to analyze how e-commerce benefits them and vice versa. Perhaps such analysis will help you to understand the growing e-commerce trend better and decide whether this type of store is a better fit for your business. 

E-commerce For Buyers

Pros:

A broader range of choices

Undoubtedly, e-commerce stores offer a large variety of products. Furthermore, considering the vast number of online stores, shoppers can also choose among dozens of stores to buy from., some of which don’t even have a physical store.

Convenience

Why go through all the traffic to buy something which you can get delivered to your doorstep in just a few clicks? E-commerce stores rule out all the hassles of standing in payment queues and dealing with the crowds.

Less price

Undoubtedly, online shopping proved to be often cost-effective with lucrative offers, discounts, and vouchers.  

Locating hard to find items

As we already noted, online stores provide a large variety of products. If shoppers are not able to find a specific product offline, the chances are high that they will find it online. What’s more, they can also read reviews of the product before buying. 

Cons:

Cannot get the feel of the product

The touch and feel of a product are one of the main factors that impact your choice, and sadly, this is one area where e-commerce lags. However, the introduction of AI and virtual reality is reinventing the industry to a great extent.

Delivery time

Unlike brick-and-mortar stores, one cannot get the products instantly online. However, drone delivery and Amazon’s Prime delivery are undoubtedly working hard to bridge the gap.

E-commerce For Sellers

Pros:

Lesser initial investment

As it goes without saying, running an online store is far easier than running a brick-and-mortar store and requires less initial investment. All you need is a website, an active Internet connection, making sure that you comply with your state’s laws, and you’re good to go. 

Marketing

With online advertising becoming easier than ever, you don’t have to spend on billboards and printed hoardings that become incomprehensible after a rain shower.

24/7 open time

Your online store is open 24/7 even when you are sleeping or chilling on some exotic beach.

Enhanced reach

E-commerce stores provide an improved reach as the customer base is not restricted to a limited area.

Cons:

Competition

It goes without saying that the competition in the online marketplace is very high.

Shipping and delivery

Taking care of shipping, delivery, and payment gateways could be exhaustive at first, but it all becomes smooth as you move ahead.

Wrapping Up

This brings us to the end of this article. Both physical and e-commerce stores have their pros and cons, but it seems that tech-savvy shoppers and sellers often prefer e-commerce stores.

The e-commerce industry is growing at a tremendous rate because online stores provide easy accessibility and convenience, which redefine the entire shopping experience to a large extent.

For more information on the in-store vs. online shopping, battle see the infographic below, packed with lots of impressive stats and facts about some of the biggest US retailers. 

SOURCE URL:  https://www.redbrain.com/blog/in-store-vs-online/