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By Ruchi Pardal
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10 May, 2024
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~ 10 minutes to read
10 May, 2024
~ 10 minutes to read
The process of creating an online shop for selling goods is not only about the costs of its organization but also the costs that are associated with the processing of orders. This aspect may prove hard as well, because a brand cannot adequately correspond with buyers and offer the same personalized shopping experience as a real store.
However, an e-commerce SEO company can reach customers outside of the physical store location without paying the high rent costs. This leads to more exposure, i.e., a larger customer base.
Source: FreePik
E-commerce sales are projected to reach approximately $6.3 trillion in 2024, with an expected jump to over $7.9 trillion by 2027.
In this article, we will explore some of the key advantages and disadvantages of online retailing compared to traditional brick-and-mortar stores.
While e-commerce has been around since the early days of the web, it has exploded in popularity in recent decades as access to high-speed internet has become widespread. When people shop online, they can browse product selections, read reviews, and make purchases directly from the retailer’s website or app.
One of the key advantages of online retailing is the ability to offer lower prices to customers thanks to economies of scale.
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All of these factors combined allow e-commerce companies to operate more efficiently and pass the savings on in the form of lower prices.
Shopping online allows you to avoid the crowds and chaos accompanying trips to physical retail stores.
In 2024, it’s predicted that 20.1% of all retail purchases will happen online, with an anticipated increase to 23% by 2027.
For many consumers, navigating a busy mall or store on a weekend afternoon is a stressful experience. You have to dodge other shoppers as you squeeze down narrow aisles, wait in long checkout lines, and find parking if you’re lucky.
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Online retailers spare you this hassle by allowing you to shop from the comfort of your home at any time, day or night, without competing for space or worrying about traffic or parking.
Online shopping allows busy consumers to save themselves that time. Casually drifting between work, household duties and insanely filled agendas, making time for in-store visits is virtually impossible. Internet-based stores capture and cater to this issue by providing effective retail that is convenient to our busy lives.
By just doing a few clicks at home or while mobile, customers can navigate through a collection of many products without the long line-ups or traffic impediments. No longer driving around from one store to another in search of that singular desired gift or product. Online shopping comes with the benefit of doorstep delivery by means of a single click.
With online retailers, consumers can find hard-to-locate items or niche products that physical stores may not carry due to space constraints or limited demand in a certain geographic region.
The vast selection available online empowers consumers with more options to find precisely what they want. It also supports small businesses and creators in accessing new markets around the world.
Source: FreePik
The current shoppers are well disposed to lead a very busy life and must deal with an unforeseeable schedule. E-commerce SEO expert merchants realize the importance of customers’ choices in payments and responding by implementing appropriate payment systems. Some strive to make it easier by introducing deferred payment plans that enable customers to buy and pay for items over several weeks or months, thus lifting the monthly budget hassles.
Online reviews are incredibly valuable tools to help guide purchase decisions. Reading past customers’ thoughts about a product allows you to get a well-rounded perspective before committing to a purchase.
93% of consumers read online reviews before purchasing, emphasizing the power of social proof.
On retail websites, reviews give consumers access to ratings and testimonials from a wide range of real people—from casual buyers to those with years of experience using the item.
You can find and purchase products without leaving your home rather than adding extra errands to an already long to-do list. A few clicks is all it takes to browse items, read reviews from other customers, and add what you want to your virtual cart. And when you’re ready to check out, the items will be safely delivered right to your doorstep. No fighting traffic, circling parking lots looking for a spot, or hauling heavy bags to your car.
Effective customer segmentation is key to maximizing the benefits of an online retail business. With the wealth of data available on the internet, retailers can gain valuable insights into their customers’ preferences, purchase behaviors, and demographics. This allows them to identify common traits among groups of customers and divide their audience into relevant segments.
Source: FreePik
Although online shopping can give consumers a unique experience of shopping and the availability of a product, it also poses some perils not experienced in traditional brick-and-mortar retail. One of the most common problems for online shoppers is the probability of fraud, as there are a huge number of scammers who aim at stealing people’s private and electronic payment information via the worldwide web.
Getting products from the warehouse to customers’ doorsteps isn’t always as simple as it seems. While online retailers don’t have the overhead of operating physical storefronts, transportation and logistics expenses often end up eating into profit margins. The costs of packing, labeling, and loading shipments add up quickly at scale.
Cybersecurity happens to be one of the key issues faced by online stores since thieves can easily browse and steal your personal and financial information. However, by keeping some of the basic safety steps in mind, like site security, secured networks, and timely monitoring of deliveries, one can easily reduce many of these risks and still enjoy the convenience of online commerce. At this juncture, just remember to stay on the right track.
For consumers, late or missing orders are frustrating and can damage their perception of a brand.
Nearly 30% of products purchased online are returned, compared to only 8.89% of in-store purchases.
From the retailer’s perspective, unforeseen shipping issues mean higher costs from refunds, reshipping items, or dealing with customer service inquiries and complaints.
Online, we can only view flat images on a screen and read descriptions. This limited sensory input makes it harder to find exactly what we want or envision how items might look and feel. The virtual environment also removes the social aspects of shopping.
Different shops have unique refund policies, and sometimes they exchange the money into credit that can only be used in their shops. Accordingly, each transaction would involve trying to understand and go through company policies for each purchase before making exchanges, which is quite tasking for high-volume purchases more than going to a store for a simple exchange.
Source: FreePik
Retailers must ensure their websites can handle high traffic volumes without crashing or timing out during busy shopping periods. However, outages and slow-loading pages are still common frustrations for customers. Relatedly, having a stable internet or WiFi connection is necessary to complete purchases.
When a customer is in-store, the individual has the privilege of examining items and might choose not to pay for the product after all this. On the contrary, when you purchase online, the only thing you can do is hope that the photo and the description are enough to give a clear idea of the product.
The online shopping experience, while convenient, provides less sensory stimulation and opportunity for discovery compared to walking through aisles in a physical store. It also does not foster the same sense of community that is often found in favorite local shops and malls.
However, this is a personalized topic and depends on the preferences of the individual. Some may argue that the benefits that Ecommerce SEO companies bring are much more vital than the social experience.
At the consumer level, home shopping, with the ease of selection and the vast range of products and price comparisons, is indeed a great comfort. However, not being able to see and try on items before purchase may result in returns, which in turn result in customers’ dissatisfaction. In general, e-commerce is suitable for both business entities and consumers if you weigh your needs and risk tolerance appropriately.
Shopify is widely considered one of the most secure e-commerce platforms for small businesses due to its robust security features like automatic updates, penetration testing, and PCI compliance.
To choose the right e-commerce platform, factors to consider include your budget, technical skills, product type, payment methods needed, and desired customization.
E-commerce provides customers with the benefits of convenience and accessibility when shopping online from anywhere at any time.
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