Differences Between Online Retail & Traditional Retail Businesses
Often times, it is easy to overlook the differences between selling online through a shopping cart and retail selling through a brick and mortar storefront. Online retail is different from selling through a store in many ways and you should become familiar with the differences so you can better understand the many benefits of selling online compared to selling through a physical storefront. The obvious differences are the way the products are displayed to customers and the way in which they enter your store to browse around.
Main Differences Between Online Retail & Physical Storefronts
- Display: By shopping at a brick and mortar store the customers are able to physically touch and handle items they are interested in buying. Online retailers are forced to display items using only pictures, graphics and text based product descriptions.
- Expense: Typically, there are major differences in the amount of funding or startup capital needed to open the store. Brick and mortar stores usually require a bigger budget since you have to lease space, rent property and pay for other location expenses. Online store owners do not usually have to worry about building leases or property expense.
- Location: Online retailers are not limited to one location and have no geographical boundaries like a traditional brick and mortar storefront has. Physical business locations can limit the amount of customer traffic and foot traffic from shoppers, especially if they are not in a bigger city or metro area. Online retailers have no limits and can typically service local, national and international customers.
- Communication: It can be harder to communicate with customers through an online store compared to the face-to-face interaction customers get by shopping at a brick and mortar store or physical business location. Online retailers may have a hard time getting information across to the customer and must be sure to answer all possible buyer questions through text and graphics on the site so there is no confusion during the purchase.
- Technology: Another main difference is the types and amount of technology needed to run each type of business. Most online store owners find that their technology is constantly changing and there is a bigger need for them to keep up and adjust as it improves. The technology used to run brick and mortar businesses has been around for years and rarely changes as often as it does in the online selling world.
This article is one of several within our Getting Started eCommerce Guides.
Article Information
View reader comments...- Subscribe to our articles feed
- Subscribe to our comments feed
- Subscribe to our email updates
- Email this article to someone
- Add to Technorati favorites
Like this? Subscribe to our RSS feed or email updates. It's free!
Our Subscribe page has even more ways, including our blog widget.
Our Subscribe page has even more ways, including our blog widget.
By eCopt on November 8, 2006, last modified June 24th, 2007
Bookmarks: or use Permalink
Read Related Articles In: Getting Started,Learning eCommerce
Bookmarks: or use Permalink
Read Related Articles In: Getting Started,Learning eCommerce
SEOmoz: 
Sphinn: 
MyBlogLog: 
Gooruze: 
LinkedIn: 
Digg: 
Delicious: 
StumbleUpon: 
Technorati: 
Fetch:
3 Reader Comments & Links
Add a new comment...Comment posted by Richly Chheuy
April 7, 2008 @ 1:52 pm
The reason brick and mortar is here to stay is face-to-face interacting and physical interaction with the products. I worked at a CompUSA in Redondo Beach, CA (before that store closed–good riddance) and even if the prices were much higher, it’s nice to actually walk-in, check out a computer, and maybe talk to a sales rep up front. Although, the downside, which eventually led to CompUSAs downfall, was the competitive retail market around the area, especially Southern California. With major overhead costs of rent, space, and property and sagging sales and excess unsold merchandise, it took its toll.
I don’t see eCommerce overtaking retail sales anytime soon, but haven’t experienced CompUSA as a sales guy, it also taught me how NOT to run a retail technology store.
Comment posted by eCopt
April 7, 2008 @ 3:35 pm
@ Richly Chhuey – Appreciate you stopping by and taking the time to leave a comment with your insights about brick-and-mortar compared to selling online.
You’re so right Richly. It will never completely dissolve due to the points you mentioned and the fact that many shoppers still do not use the Web for ALL their purchases. There is, however, a huge increase in businesses that continue to go virtual or add a Web division to their company, so what I am finding is that many aren’t moving from one to another, but rather are embracing eCommerce as a part of their current business model. It seems to be going well for most that make the move, from what I have seen and heard.
I think in the instance of CompUSA, that it was just too little too late for them, which is sad. In my opinion they basically missed out on their opportunity to canvas the Web as “the provider” of quality consumer electronics for home or office at a time when it was do or die for them. They failed to expand their web presence at key times, they failed to increase productivity through technology and they failed to listen to feedback from their customers during the whole time. Those are three things that will hinder any businesses attempt at future success.
Thanks again for sharing, hope you like what you’re doing now much better than CompUSA, see you around and good luck with the mediachase blog.
Comment posted by Richly Chheuy
April 7, 2008 @ 4:17 pm
Hey eCopt,
I worked in CompUSA for about a month. Into my fourth week, we were all told the store was going to close in a couple months and all merchandise would be liquidated. It was a mess when that announcement was made: morale dipped among the employees and many left right after the announcement was made, including me.
It was sad to see a former computer giant fall like it did. But you’re right. Aside from the internal incompetence among its retail management, they did not utilize their web presence to its fullest–CompUSA was known for its retail stores, not so much in the online space–except maybe to peruse the site for deals and then visit a local store.
Then I worked at a Coffee Bean and Tea Leaf for the next seven months before Mediachase. They have a bare bones eCommerce presence, but can’t exactly order a fresh brewed espresso from a shopping cart and have it ship in 5 minutes =).
Thanks again for your support. I’m going to do my utmost best to grow the Mediachase blog.
Links to this Article
TrackBack URI...Add a Comment