Explore the pros and cons
If you are a business owner and plan to open a physical or online store
You are probably wondering which option is best for you.
For those just getting started – or looking for cost savings – no doubt they would opt for digital stores.
But even though this is obvious, a business owner should understand the benefits of both options.
The advantages of physical stores:
1. Personal interaction with customers: When you have a physical store, you have the opportunity to build personal relationships with your customers.
This can help create repeat customers and build brand loyalty. I remember buying my healthy sandwich from this store because the waiter was smiling and always friendly. She would even pick up my orders ahead of time as she already knew me.
2. Customers can touch and try products before buying: One of the benefits of having a physical store is that customers can test products before making a purchase.
This is vital for products like clothing, cosmetics and home decor – where people want to see what the product looks like before they commit to buying it.
And speaking of which, I remember my wife trying to squeeze that take-out pillow.
3. Store ambiance/decoration can be used to attract customers: When you have money, you can control the ambiance and decorate to attract your target customers.
For example, if you sell high-end fashion items, you want your store to have a luxurious feel to attract wealthy shoppers.
On the other hand, if you’re selling budget items, you might want a more casual vibe to appeal to value-conscious shoppers.
Add music to it – it adds to the psychology.
4. Locations in high traffic areas can generate foot traffic: if you can secure a location in a high traffic area, the better!
An example is a place near a shopping center or busy city center. This can help drive traffic to your store – lead to impulse purchases from people who weren’t even planning on buying from your store in the first place!
The advantages of online stores:
1. No overhead associated with renting/maintaining physical space: One of the benefits of having an online store is that there are no costs associated with renting or maintaining a physical space.
This means that your earnings will go straight into your pocket instead of spending on rent, utilities, etc.
It reminds me of this business owner who approached me for advice. It sells home appliances but only has a digital store to showcase them.
She had no storage costs because the orders come directly from the supplier’s warehouse.
All the net profit goes into his pocket before taxes.
2. Can Reach a Global Audience: Another benefit of having an online store is having a global audience accessible with just one click.
This is great news if you expand your customer base beyond your local community! Doing business has no borders these days. How to make things happen is up to you.
3) Customers can shop 24/7: One of the advantages of online shopping is its 24/7 availability.
It’s convenient for people with busy schedules who don’t have time to shop during traditional retail hours (i.e. daytime on weekdays).
The platforms have built-in automated processes and already have payment channels.
All you have to do is upload your product or service offerings.
4) Easy to set up and maintain: Unlike brick-and-mortar stores that require significant effort and expense to set up and maintain, online stores are relatively easy and inexpensive to set up – and thanks to platforms like Shopify – which provide everything you need to get started. e-commerce.
5) Can easily track data/analytics: It is easy to track data and analytics such as website visitors, conversion rates, popular products, etc. This information can be useful in helping you make strategic decisions on things like marketing campaigns, product offerings, and more.
There are pros and cons to opening a physical store and an online store (or selling through both channels).
The right decision for your business will depend on factors such as your target market, budget, product offering, etc.
I hope this overview has given you something to think about as you consider both options for your business!