Strategy

Comparing the ‘in-store’ versus ‘online store’ business model

Our world is full of things to buy and there is an abundance of places to buy things. If you are thinking about entering into the business world by opening up your own store, there are many things to consider.

Many years ago your only option was to open a physical store and the factors involved for doing that included the type of store, how big or small the store should be and the location for the store.

Then, of course, came the small matter of getting it funded…

What Has Changed?

Today, opening up a new store is a very different thing. One important factor is to consider how your buyers prefer to purchase your goods or services. Do they prefer to go into a real physical store? Or do they prefer to browse online and make their purchases via e-commerce?

Something to think about is how the trend to use e-commerce is rising rapidly. Just in the last three years, global retail sales using e-commerce jumped from 7.4% in 2015 to 10.2% in 2017. The trend is projected to 17.5% by the year 2021.

Do these figures surprise you?

They shouldn’t.

Generally, if there is a trend that increases over a long period of time, it should be a clear indication many business owners are successfully managing their online side of their businesses.

Obviously, there is a market for online business, and business owners (going by this growing trend) are investing in it because they see its undeniable potential.

This change has also seen a growing trend of online purchasing enablers. Consider the likes of payment facilitators such as PayPal, Google Wallet, ProPay, 2Checkout etc…

Where were these companies in the 80’s?

Non-existent. However, the founders of some of these online giants all started with a vision and determination. The likes of Elon Musk and Jeff Bezos worked very hard for years to get where they are today.

Perhaps, you aren’t thinking big just yet. You never know how people will react to your business but strategy and persistence pay off.

What to Do with so Much Information?

If this isn’t enough things to consider when comparing the in-store versus online store business model when you are thinking of opening up your new business, then you should take a good look at an infographic that shows how the eleven best American businesses are doing. There’s a large stash of vital information there that might help your decision.

Overall, making a splash in the online business sector seems to be something of a good move. Something more to think about would be “How much to invest”?

Yet, don’t be deceived into thinking this is a very easy thing to do. If you think that you have simply to buy the software, have it installed, place your merchandise or services online and that suddenly people will start ordering your products or services immediately, you are in for a major disappointment.

It takes patience and commitment to build, establish (yes, they are two different things) and maintain your store online.

It’s not as simple as installing it, putting your feet up and announcing to the world that you’re ready.

Read the infographic below and get back to the drawing board to consider whether you have what it takes to make it online.

URL: https://www.redbrain.com/blog/in-store-vs-online/


 Karthik Reddy, Community Manager, is the author of India’s Number 1 travel blog. Boasting an MBA in computer science, he once decided to get away from the office desk life and take a breathtaking journey around the world. He is eager to use the power of the global network to inspire others. A passionate traveler and photography enthusiast, he aspires to share his experiences and help people see the world through his lens.

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