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Shane T. Frank, Houston COO, on Retail v. E-commerce
Shane T. Frank shares insight into the major differences between retail shops and e-commerce.
When it comes to shopping, the days of having to physically visit a brick and mortar shop have generally come to an end. That’s not to say brick and mortar’s aren’t seeing success; in fact, according to Forbes contributor Jia Wertz, online sales make up for only 8.1% of total retail sales in North America. Meaning, brick and mortar shops are still holding the majority in how consumers are purchasing their goods. However, the numbers for online sales are surely projected to increase, and many wonder how much business they will take from the traditional brick and mortar. While it’s easy to group both forms of shopping together, the fact is, there are some major differences between the two:
24/7 Business v. Store Hours
One of the major ways e-commerce shops have the upper hand over brick and mortar is their “endless” store hours. As an online store, they are virtually open 24/7, and can receive business from global consumers at generally any time. Physical stores, on the other hand, are usually limited to their store hours; unless they too are utilizing their own e-commerce site. It’s really a virtual location v. a physical location. Consumers shopping at a brick and mortar store need to visit the physical location during store hours to make their purchases, while e-commerce offers consumers a “virtual” location that provides them with the ability to shop from anywhere at any time, and have their items delivered to directly to their home.
Traditional v. Digital Marketing
Marketing is essential for both e-commerce and brick and mortar stores. However, the marketing channels both use tend to be different. Online e-commerce shops typically use digital market channels such as social media outlets and other forms of digital advertising. While traditional forms can still prove to be useful, due to the fact that they operate in the online space, it is likely that online and digital marketing channels prove to be more effective. For brick and mortar shops, on the other hand, consumers will generally see traditional forms of marketing, such as television, radio, and print advertising, heavily utilized. However, in some cases, brick and mortars are also hopping on the digital bandwagon, and are taking advantage of both traditional and digital forms to maximize their outreach potential.
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Personalized Customer Experience v. Online Experience
Another significant difference and one that holds a heavyweight for consumers is the personal shopping experience they receive from visiting a brick and mortar store. Brick and mortar shops have the upper hand when it pertains to customer service, and for consumers, this means a lot. Physically going to a store provides consumers with immediate help if needed, for product questions, advice, and insights, and someone to assist with making final purchases. Even in cases where the customer service may not be at the highest level, many consumers prefer to shop somewhere where they can speak to someone if need be. When utilizing e-commerce, consumers are limited to the help they can receive, and if they are in need of customer service, are often directed to a general phone number where they may speak to an actual representative, or be forced to go through with an automated answering service. In many cases, the personalized customer experience wins.
There are surely benefits to shopping with both a brick and mortar or an e-commerce store, and in many cases, the popularity is based on consumer preference. For now, the ability to choose from either serves as the best of both worlds.
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This article was originally published on shanetfrank.net
About the Author
Shane T. Frank is a highly experienced entrepreneur with interests in cryptocurrency, international export, and technology. Based in Houston, TX, Shane is a co-founder and the Chief Operations Officer of alliantgroup, a national specialty tax service that assists businesses, and their corresponding CPAs, in maximizing available tax credits and other various incentives. For more of Shane's insights, visit:
