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Brick-and-Mortar Vs. Online Retailer: Which Is More Profitable?

By: Brittany Engelmann-- 2016-12-14 7:00 am --

With the surge in online shopping, many brick-and-mortar stores are beginning to worry whether there is a future for in-store shopping. Entrepreneurs, on the other hand, are at a loss about whether to launch an e-commerce store or open a physical location. It begs the question, which is the most profitable option for retailers, and is one a better investment opportunity than the other?

The Pros and Cons of E-Commerce Stores

Shopping online has become increasingly popular over the years. Now, about 51 percent of all purchases are made online, and that number has been increasing with each passing year. The reasons people choose online stores over brick-and-mortar stores vary, but here are some of the more common reasons cited.

  • It’s more convenient. People’s lives are busier than ever before, and many people don’t have the time to conduct all their errands, while keeping up with their daily lives. Online shopping can make shopping quick and easy, allowing people to stock up on household supplies from their phone or computer in a fraction of the time.
  • It can save shoppers money. Even with all of the technology available to shoppers to improve price comparisons, shopping online still offers better savings. Rather than being confined to their specific region, consumers can access stores and brands from across the globe, searching for the best prices available.
  • People prefer to avoid human interaction. Contrary to popular belief, most people actually prefer to avoid human interaction when shopping. Research shows that about 8 in 10 people prefer digital interactions to a real human experience, which is easily provided through online shopping.

The Pros and Cons of Brick-and-Mortar Stores

Brick-and-mortar stores render fond images in the minds of people. People often simply enjoy the experience of spending a weekend at the mall, hopping from store to store, browsing for needed items. It’s also the ideal option when shopping for clothing that needs to be tried on, as well as gifts, which people often prefer to hand-select. In-store shopping is sometimes critical, such as when people need items in a hurry and can’t wait for delivery. Also, for many older folks or people with limited socialization in their lives, shopping can provide a time for some much-needed human interaction.

Which Is Better?

At the end of the day, both are viable options for building a reliable income, and it simply depends on your goals as a retailer. If you already have a brick-and-mortar shop, don’t despair! There is a lot to be said about the in-store shopping experience, and many consumers prefer it, simply due to the human interaction it provides. However, for entrepreneurs, starting an online store is much easier, requires a considerably lower investment, and it entails far less risk than launching a brick-and-mortar shop.

If you’re thinking of launching an e-commerce store, it’s a wise investment. Not only does it entail minimal risk, but it can be much easier to generate a consistent income, as you’re opening yourself up to a much wider array of consumers. At DollarDays, we work alongside e-commerce stores to provide them with everything they need to get started. We offer a vast array of wholesale merchandise that’s ideal for online merchants, enabling you to access high quality goods at exceptionally low rates. Contact us today to learn more.