Introduction: In the economic downturn, gradually reduced guest flow, fewer orders make many shoppers panicky. On the contrast, online store are developing more rapidly than before, seizing large proportion of physical stores’ market share. However, that doesn’t mean that brick and mortar stores are being phased out completely. There are pros and cons to both, and here we look at those to help you make the best investment with your time and money.
1. High management and Operations Cost
It’s no secret that the cost of running a brick and mortar business is going to be more expensive. You’ll have rent, electricity, and all of those bills that come with a physical location, as well as require a larger staff and contract commitments to all the above.
2. The shopping time is limited
Most physical stores have work time. If you are shopping out of time, you upset yourself in front of the closed door.
3. Excessive service
Servants in Brick and Mortar Stores are annoying you by constantly promoting products that you actually don’t need
4. Traditional promotion forms
Television, broadcast, newspapers…..things like that maybe a little old and out-fashionnal, what’s worse, large capital invested.
5. Lower customer loyalty
Greater customer liquidity makes it hard to maintain and improve the relationship
1. The necessity of servant
Products such as clothes, shoes, jewelries, and some other technical commodities need professional servant to find suitable size and express performance
2. Firsthand experience
Many people go to the Brick and Mortar Stores because of its firsthand experience , which can bring security and leisure.
1. Lower cost
Because you can start an e-commerce business website straight from your home, you won't have to worry about the expensive start-up costs. You'll just need a website and URL, some stock (unless you’re drop shipping) and as much investment into marketing as you can afford. Lower cost contributes to lower price, which is the most attracting point for customers.
2. New ways to promote:
Social media has developed fast and have the trend to be the mainstream of corporation promotion, telephone users can be unconsciously influenced. what’s more ,it’s economical.
3. better maintenance of customer relationship
You can send messages about your promotion or new products launched , and so to increase sales.
4. A variety of commodities
As you know, whatever you want to buy on e-commerce stores, just search in the blank box and click Enter key.
1. Bad comments can ruin your business
Customers totally judge whether a produce is good/suitable or not by looking into previous comments on it.
2. Serious homogeneous products
More products make more homogeneity
3. Lower security because of no experience
4. After-sales service is not as much in time as Brick and Mortar Stores
Finally , no matter what business design you decide to go with, the important thing is to go all in. People crave quality shopping and easy ways to purchase, and you can't give this to them unless you're dedicated. If you already own a brick and mortar business, then it might be time to expand it by adding an e-commerce element to your website.
Even if you do plan on going with a physical location, your marketing campaign will need to be online in some way shape or form. So, if you want to save yourself some hassle and time, start with an e-commerce website for an inexpensive way to test the market and steadily grow your business, and then move into the world of brick and mortar if and when you're more prepared for the higher costs.
Also, if you work e-commerce very well, you can think about develop an entity shop, we call this business model O2O.
Absolutely, this model is becoming more and more mature.