Online ecommerce website or physical store?

If you expect to know from this article how inexpensive an online ecommerce store is and how well it works compared to a physical one it will not be like this and tell you this from the beginning so you will not waste your time.

I’m starting this article because of the myth circulating that you are opening an online shop to save your staff and rent. You will still see both, pros and cons of the two variants of commerce.

1. Stock of goods

If you choose to open a physical store, you will need the original stock. You could say that it is also true for the online shop but if you are not a manufacturer and you can juggle with the short delivery times from your suppliers you could get rid of the stock of goods initially what really means an economy even if on the the other would bring you a higher price per piece because you can not negotiate on the volume. The latter is not a long-term strategy.

2. Space area

If you want a clear online store you do not need a sales space but you may need a warehouse for the merchandise. If we are talking about a showroom, it’s good to keep in mind that it will depend on commercial and weather conditions, except in a mall. The online shop does not depend on geographic barriers unless you impose it. That means you can get way more people with this online ecommerce store than with a physical store, be it in a mall.

3. Staff employees

The online store will not have employees, at most it can be endowed with a chat behind an employee or an artificial intelligence shoe. It does not matter how the employee looks like, it does not matter how it’s dressed, age or sex. In the physical store, you depend greatly on the kindness and ability of your seller. Indeed, staff costs may be lower in the case of an online shop at the beginning of the journey versus a physical store.

So, in online ecommerce, salary costs can be reduced, depends how agile is the manager/entrepreneur. You can find developers and pay them online, they do not have to be at your business location.

4. Infrastructure

Here we can discuss about furniture and equipment for a physical store or about an online website. Depending on how many products you have and what you want to make the online store (product comparisons, gliders, configurators, etc.), it can help to cost the same or even more than just a real store fitting.

Also costs for monthly bills for electricity/internet/local taxes fees/rents can increase considerably in a physical store. On the other hand, in ecommerce online websites you will pay at start for web hosting, but costs are much lower.

Here too we can include the SEO part that I recommend you do to get as high as possible in ranking results on Google. The results will be seen in a few months, but it’s worth the effort to help you along the way.

5. Promotion online ecommerce store vs traditional store

ideas for cheap webstore websites

Everything you save if you choose an online shop to the detriment of a physical store should go for promotion. Commercial trade gives you exposure, limited but still exposure. The online store will have exposure only through sponsored methods, at least for the start. And even after you reach a high level you will not be able to give up this type of sponsorship because you will have a much bigger competition.

And another important aspect is that for an online store you need photos of products what the physical store is not necessary. If you get them from the vendor you have solved an important problem. But if you want to make the photos, keep in mind the number of Pieces you have on stock and think that the price of the photo needs to be amortized.

If you think about opening an online store, think that you will need financial capital to support promotional costs and their total monthly can reach or exceed the cost of a physical store. Of course the sales potential is by far much bigger and the only one that can hinder it from evolution is you.

In online, you have to show up in front of the target audience, they have to see you everywhere, on social networks, on the first page on Google, on influential articles, and so on. Do not rely on the recommendation, in online it comes a little harder than a physical store because of the fear some have to order something on the net because it does not look like in the picture or it is not the right measure or others.

The moment you start selling will be because of the campaigns you will be doing and then you will always optimize the costs / conversion. It’s a job that a specialist needs to do, believe me it’ll cost you less than if you did it.

In the end, a good marketing strategy makes the differences between traditional shopping store and online ecommerce website.

Conclusions

Finally,

No matter what you choose, it’s a good idea to have a business plan and support capital for a long enough period to ensure healthy growth. I recommend that you do not have unrealistic expectations from one or the other and pay attention to the slightest detail because at some point that will make the difference between you and the competition regardless of the offline or online environment.

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