The Internet has changed how customers are shopping!
It has significantly impacted the nature and core of buying and selling in nearly all Industries.
Internet has transferred the power from you to the customer by making comparison shopping fast and simple. Both the percentage of the digital buyer and the average amount they spend is highly increasing.
Less brick and mortar is it better?
E-commerce makes it easy for firms to sell products, digital advertising, purchase supplies, bypass intermediaries, track inventory, and eliminate paperwork, and share information.
Most traditional retailers have learned that their online sales can boost in-store sales using their websites to promote in-store promotions.
Those who didn’t learn or couldn’t adapt to this new customer behavior, end-up shutting down like ” Toys “R” Us”
in recent years, the speedy flow of information through the internet has created a borderless world with global competitors, customers, and citizen.
E-commerce leads to minimizing the company expenses:
For example, Apple has no manufacturing facilities of its own, so it could remain financially lean with virtually no long-term debt.
Even Adidas will close 110 of its stores in 2018 and shift to online retail in a few years.
CEO Kasper Rorsted said, “over time, we will have fewer stores but they will be better.”
that’s why less brick is better to focus more on production and decrease your overhead costs a headache.
Rorsted added, “Our website is the most important store we have in the world. It has priority when we hire, when we allocate our resources and when we build our infrastructure.” it’s a good step for Adidas to adapt global changing.
On the other hand, e-commerce can maximize your sales and profit.
From sales perspective:
Customers’ shopping behavior has shifted from offline purchase to online purchase in a few years. Online shoppers believe its more comfortable and faster. Though some internet users might prefer to check a product online before buying to compare everything and then go buy it directly offline, you should be ready for all customers perspectives.
From profit perspective: Revenues – cost = profit.
You will sell with the same offline prices, but you will save other costs like; land acquisition and permissions, and you won’t have to hire the same number of salesmen as if you would for a retail shop. The selling and buying process will be done with ease and less cost.
Is physical retail really about to disappear?
That’s depending on your situation, there’re a many of Defensive Strategies such as
(Retrenchment, divestiture, liquidation).
Retrenchment occurs when an organization regroups through cost and asset reduction to reverse declining sales and profits.
The main purpose of retrenchment is instituting expense control systems and assets. therefore, having a virtual store will fit your strategy just fine. Not only that, but it will also be suitable for other marketing strategies whether integration strategy or intensive strategy.
One store with few visits or one website with thousands of visits:
What would you like more, having a physical store opened with few people coming by every day, if you already established good brand awareness then maybe hundreds of visits a day. Or have a website with thousands of visits to it from all over the world?
After you think about it and make you your mind, don’t jump into deciding “Yes, I’ll create a website” first you should ask yourself. What type of website my business really needs?
Then, you need to act fast and book a domain before someone else does! this way you’ll be making your first steps into making a professional online presence.
We can’t say that retail shops aren’t important anymore, however, the soon you realize how businesses are going the better it is. You’ll save your self from spending money and time in the wrong directions.
Even great businesses like Amazon started online, and never needed a physical store to grow their profit.
Ready to be the next Amazon? Let’s be partners and kick-start your awesome website!