The evolution of shopping has changed over the years. eCommerce influences the best business practices for all kinds of retailers. With their unique strengths, physical and digital stores remain important sales drivers. As a business owner, you might be curious about the strategic differences between the two. You might benefit from checking out the considerations retailers make when creating business strategies. This article defines shopping before and now and reviews how they differ.
Will eCommerce replace the storefront?
With the rise of the digital economy in the last several years — particularly in 2020 — it’s straightforward, physical stores get critical, especially in the pandemic era. As a result, e-commerce contributed P599 billion ($12 billion) to the country’s GDP in 2020. It is expected to grow to P1.2 trillion ($24 billion) by 2022, according to the Department of Trade and Industry (DTI).
Online shopping gives consumers more convenience and makes the shopping experience effortless without leaving their homes. This is one of the main reasons why consumers prefer shopping online compared to physical stores.
Although eCommerce will not totally replace storefronts, business owners must adapt to the changing business environment to stay competitive. If you don’t, you are going to be removed from the competition.
Another leading trend in digital eCommerce today is the payment methods Buy Now Pay Later (BNPL) and Cryptocurrency. Online retailers who offer these payment solutions see an increase in their retail conversion rates. These solutions are very enticing to drive sales.
Why is eCommerce better than retail?
There are a couple of advantages of online stores that some business owners may not realize. Here are a few.
1. It allows you to sell worldwide
On the business side of things, realistically, shipping is a pain, but imagine your products can reach anyone in the world. The chances for higher profits are there if your demographic is larger.
It has been so popular among businesses because you do not need to store inventory, thus reducing overhead costs and more profit for you!
3. No need for a lot of inventory
For example, in dropshipping, you can have your own digital store and make inventory easier using online tools and software! eCommerce has decreased barriers to starting an online business!
Because of lower overhead expenses, you can have a higher profit margin! This is why shopping online is cheaper and why more businesses open digital stores.
Why are physical stores better?
This has always been a question when digital and physical stores are compared. And as mentioned above, digital stores have their advantages, and so do physical stores.
1. Customer loyalty
The connection you can have with the clients, customers, and employees helps your business grow.
2. Product interaction
When customers visit a physical store, they can test the products before buying them, which is always a good thing in shopping.
3. Promote immediate sales
The chances of buying anything are greater than when customers shop online — plus, if they’re in the store, customers can buy stuff last-minute too.
Shopping before and now has a lot of changes. If you’re not going to adapt to the changing business environment, surely you are going to be left behind.
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Remember, the evolution of shopping may have changed, but the spending of people has not!
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