Even though the online world is becoming increasingly popular, are you someone who can’t distinguish between choosing whether you should have an online or offline store? Or maybe you are used to working with traditional methods and don’t want to open a business online?
Moreover, whichever method you choose, both businesses have pros and cons. For example, traditional physical and e-commerce stores have two different business models but don’t worry, because we have many things to learn in this article.
Let’s dive right in!
3 Benefits of owning an offline business
1. Deeper connections
If there’s one thing the online world can never succeed in, it’s the fact that you can’t build personal relationships with employers and customers the same way you do so in the real presence. Meeting people in person gives you a whole new perspective about people and lets them understand how your brand can make things easier for them. And when people feel appreciated in real life, they may become loyal customers in the long term.
2. Customers can see their inventory stock
Purchasing an item from a physical store is significantly different from the online world. Online, you aren’t allowed to see the item and even try it out physically. As a result, many shoppers may prefer trying out items in persona rather than making a purchase online. However, customers will always desire to touch, compare, and feel items, so they can see what belongs to them and what they can shop for online.
Additionally, let’s not forget that once customers observe an item, they may also use it as an opportunity to connect with a product and ask questions about it before making a final purchase.
3. Lower return rate
Online shopping has a much higher return rate than traditional shopping. According to statistics, the return rate of online shopping is 30%, while it’s only 9% in traditional shopping. This is because people who purchase at a shop can better identify what they want to buy. Furthermore, it helps them undergo trials and see if it’s the right fit for them or not. Therefore, customers can physically see what they want and purchase based on their preferences.
How has online business changed the world?
eCommerce is the purchasing of goods and services online. The widespread world of e-commerce sites like Amazon, eBay, and others, has led to considerable growth in online shopping in the past 15 years. According to statistics, e-commerce growth has nearly tripled in the past decade.
The days when people had to go to a physical store to buy a good or service don’t exist anymore. Now, it’s a matter of choice and what you think is the best deal for you. The customer goes to the shop, looks around for things to buy, and pays a specified amount. However, with the rise of eCommerce, people can purchase goods and services with only a click away.
Additionally, let’s not forget that the world is going digital, so offline businesses aren’t as powerful as they once were.
6 Benefits of having an online business over a traditional offline one
1. Lower operational costs
Maybe you can build deeper connections with traditional stores, but if your business isn’t going too well, you may suffer financially. An online business’s considerable advantage is that it doesn’t need any physical presence to operate. Especially if your business is large, this saves you a large amount of money.
2. POS systems
Have you heard about POS systems? It’s a popular system that allows you to manage your inventory online, sell from anywhere you want, and gather and control everything on one platform. For example, if you own a Jewelry shop, you can use POS for Jewelry shops, which is a high level of personalization you can’t receive in a physical store.
3. No Boundaries
Unlike a traditional method of selling offline, online selling doesn’t have any global boundaries. You can ship to any country you like, as long as you meet customers’ wants and needs. Furthermore, when you have no limits, there’s a higher chance of succeeding because you have more options. Each country has its own traditions and preferences, so if your business doesn’t work in your area, it can work somewhere else!
Therefore, this larger range of options increases the chances of earning higher profits and building deeper relationships between buyers and merchants.
4. Better time management
If you work from anywhere, you aren’t going to go to your office in a rush, but be in a comfortable position. You can sell and earn while you are at home or in an office of your preference. So, you are not only saving time but enjoying your time at it!
5. Able to go international
Do you want to sell worldwide? Well, you can’t do that with traditional selling methods. Nevertheless, you can deliver a large number of quality products and services across the world, especially if there are trending products.
In this case, not only are you increasing your brand’s reputation, but also going against world players that will help you succeed.
6. 24/7 availability
A physical store can’t be working 24/7 unless you live in some city that never sleeps. Do you want to make money while you sleep? Well, in order to do so, you have to have an online business! There are no restrictions in the online world, and the best part about it is the fact that you can be available at all times.
Therefore, 24/7 availability won’t only increase profits but also directly affects your brand’s reputation.
What are the types of eCommerce businesses?
eCommerce doesn’t only have a kind of business but has several of them. They are the following:
Business to consumer (B2C)
Mostly the retail part of online business. It’s when companies directly sell their products or services and even inform consumers. Nowadays, online stores sell different types of consumer goods online. However, Amazon is one of the most well-known examples of these sites, which dominates the B2C market. Nevertheless, most online sites will find it much easier to do B2C online.
Business to business (B2B)
Usually occurs with electronic exchanges between two or more companies regarding their products and services, rather than between the business and consumer. These trades allow companies to search for products and services that initiate transactions through online interactions.
Therefore, if you are concerned about increasing your B2B sales, eCommerce solutions can help you in doing so.
Consumer to consumer (C2C)
C2C includes consumers trading an online product or service. These transactions involve third-party interactions where transactions are performed.
Consumer to business (C2B)
No, this isn’t B2C, and this includes the complete opposite. C2B is when customers make their goods and services available to bid on and buy from companies. A great example of C2B would be YouTube!
A P2P business model is where two individuals buy or sell a product or service to each other without any third-party intervention. A great example that includes third parties not intervening is platforms like Booking.com, Airbnb, and more.
Hyperlocal Business Model
The hyperlocal business model includes malls, markets, restaurants, and more. This includes customers that buy a product or service from stores in their local area (f.e: their neighborhoods and more).
Is having an online business better than a traditional offline one?
Well, based on what you read, you must have realized how beneficial an online business is. As we mentioned benefits for both sides, you got to see that an online business outweighs an offline one. How so? Well, it has many more benefits associated with it, and let’s not forget how faster the digital world is growing. It’s important to follow trends, and the online world has done this.
Some of the main factors that stop you from reaching higher climaxes in your revenue are having boundaries in the area you are selling. The online world removes these barriers, so it’s time to go out there and sell!
Wrapping it all up
That’s about it for this article. These are our top benefits when having an online store over an offline one. Even though offline businesses may be excellent to use and have their advantages, it’s important to understand that when you don’t keep up with trends, your business will look outdated.
However, an offline business might only work whenever it’s a must to be physically present for selling a good or service. For example, when you run a local store, serve food or coffee, etc. Otherwise, the online world is powerful and should be fully taken advantage of.