Prepare Your Business for the Future
As the growth of the internet continues to transform the marketplace, many believe that new online stores are driving out the old Brick and Mortar. Current market trends say otherwise. Many of the world’s most successful retailers are finding ways to create synergy and expand their customer base by successfully merging the two. Both store types have much to offer, but their effective combination will lead to massive profit.
To understand what this combination may look like for you and your business, you need to realize some of the key benefits of each type of store and how these can complement each other.
Key Benefits of Online Retail:
- Diverse Inventory - Since items are viewed via online pictures, having enough shelf space to showcase inventory is no longer a necessity. This frees up l extra storage space to bring in new items that can help add diversity to your usual offerings.
- Low Prices - Many customers shop online to find sales and discounts for their favorite items. If you’re pursuing a cost-leadership strategy, customers can be lead straight to you.
- Minimal Overhead - Selling products online means that you spend much less on labor and processing costs for each item sold. These marginal savings add up quickly.
- Marketing - Online stores allow for low-cost wide-spread marketing. Distributing online ads or brochures is easier than ever, and you no longer have to pay for the physical costs of traditional advertising. Additionally, due to ease-of-access, ads can now spread faster than ever; and thanks to many companies offering free metrics, you can now view the kind of market insights that used to cost thousands.
- Availability - Because online shopping is always available, you’re no longer limited by your store hours. Customers can shop on Saturdays and Sundays while you take the weekend off and their items will be shipped on the next business day . They can shop from anywhere, at any time.
- Location Based Marketing - Because brick-and-mortar stores have a physical location, the outdoor ads draw constant traffic, and thus are far more likely to draw in impulse-buyers. In addition, placing a store in a specific location gives you the opportunity to understand its demographics and preferences, which allows your advertisements to better target a particular audiences’ needs.
- Legitimacy - Because customers have the ability to meet with employees face-to-face, people are more willing to trust businesses that they can physically walk into. Because of the ability to instantly purchase and receive their items, they know that they aren’t being scammed.
- Verified Quality - Despite customer reviews and feedback, most people are still very hesitant to buy products that they’ve never seen or touched before. Quality is perceived by experience; so if someone’s going to invest in something, they want to have the security of experiencing it before purchasing.
Both store types have their own advantages and disadvantages. Trying to specialize in one proves challenging, as you’ll always be leaving some customers unreached. However, if you find out how to effectively utilize both fronts and obtain synergy between your outlets, you’ll be giving your business the chance to reach thousands of new customers, and get a shot at making huge gains in your profit.
To learn about a solution that allows you to seamlessly run both storefronts, request your Counterpoint demo today!