Starting an Online Store vs. a Physical Store: Pros and Cons

In this article, we’ll take a look at the advantages and disadvantages of online vs. offline when it comes to storefronts.

18:22 03 August 2021

In a world that’s becoming more and more digital, consumers have discovered the joys of online shopping. And with online stores becoming so popular, a new business owner might be faced with a hard decision - should they open an online store or a physical one? In this article, we’ll take a look at the advantages and disadvantages of online vs. offline when it comes to storefronts, so you can make the best decision for your business!

 

An Online Store Is Easier To Set Up

When opening an online store, the costs can be quite minimal. An ecommerce platform is also easier to set up than a physical store, especially if you use a website builder. Such a tool will allow you to build a professional website in a matter of hours. On top of that, when you run an online store, you won’t have to deal with rent or utility bills that will add to your total expenses.

 

You won’t have to spend money decorating or investing in display pieces. And if you manage the whole thing yourself, you won’t even have to hire new people. When it comes to an online shop, all the costs are related to the website itself - securing the domain, shipping costs and payment solutions. We won’t sugar coat it - it can be expensive, but it won’t be as expensive as owning a physical store.

 

Customers Need to Touch The Products

Even though they have many online options, some customers still need to see the product upfront before buying it. This is especially important when it comes to unique items such as jewelry, antiquities, cars or furniture. A physical store will offer them the peace of mind and security that their money hasn’t been spent on a sub-par item.

 

However, that doesn’t mean you shouldn’t have an online presence as well. You can also set up an online store where the customers can get as many details and specs about the items as possible before coming into the physical location to try it out. A good example of such a combination is the furniture giant Ikea, which has both an online store and physical locations where customers can try out the products.

 

An Online Store Is More Accessible

An online store comes with the amazing benefit of being more open to the world. So if you decide to expand your target audience to other countries and continents, you can easily do that. Simply by being on the internet, you’re able to cast a wider net. All you need to do is extend your marketing efforts to new territories, while taking into account the language and local customs.

 

That also means you’ll have to deal with new competition and invest more in shipping options as it can get quite expensive to ship overseas. But that’s really a drop in the bucket of profits you’ll be making while being open for a worldwide audience.

 

Physical Stores Can Be More Visible

When you open a physical store, you’ll get instant visibility. You won’t have to invest in as many online marketing campaigns that announce the launch of the store and you won’t have to spend extra money on making sure everyone knows your shop is open. Trust us, once your physical store has its doors open, everyone will be aware of that.

 

Moreover, if you choose a strategic position (a tourist area or a large square), you will notice a significant amount of customer traffic every day, as the people will see your store right away. However, your job doesn’t stop here. You will have to invest in attractive displays and signage that will catch the eye and drive potential customers to your store.

 

Online Stores Are Always Open

With a physical location, you will have to set an opening and closing schedule. This could result in losing a huge chunk of potential customers that might want to shop when your store is closed. An online store, however, is open for business 24/7 and will be taking orders at any time of the day, week or month. As long as you make sure it runs on a solid server and doesn’t have loading time issues, an online shop will be generating non-stop profits.

 

This is especially important when you consider the short attention span that people have nowadays. When you manage to grab the attention of a customer with a product, it’s important you lead them through the funnel as fast as possible. And that’s just what an online store will do - it shows the product and makes it instantly available for purchase.

 

There Are No Shipping Costs in Physical Stores

When you own an online shop, the shipping costs can be quite taxing. That’s not the case with a physical location, however. The customer enters the shop, pays for the product and leaves. The shipping costs can be especially high if you’re delivering to other countries as well.

 

In fact, a huge majority of online shoppers end up abandoning their carts when they see the shipping costs. Sure, you can offer deals and discounts but when a client has to pay half the price of the product for shipping alone, you can surely see how a physical location would benefit your business.

 

Final Thoughts

Now that you have a few pros and cons for both physical and online stores, you can make a better decision for your business. Do you want to be open and available 24/7 or do you want to allow your customers to interact with the products before buying them? These are just a couple of questions you’ll need to answer before investing time and money into a store, be it physical or online.

 

Just keep in mind that physical and online storefronts have different marketing needs and strategies. So no matter what choice you make, you’ll have to adapt your advertising methods to better suit that one. Have you made your decision yet? Do you prefer an online or a physical location? Let us know!