Online retailers have a huge advantage over brick-and-mortar stores, which are in the business of selling goods. Brick-and-mortar stores allow customers to touch, feel and test products before making a purchase. E-commerce also helps retailers collect sales, as shoppers do not have to pay delivery fees. Moreover, brick-and-mortar stores have more staff, which means that they can provide a more personalized shopping experience for customers.
The impact of e-commerce on brick-and-mortar stores is a long-term trend
In the last quarter of 2018, the US Census Bureau reported that the eCommerce industry contributed 9.9% of total retail sales. Growth in the sector has been consistent and has never shown any dip. This is because online retailers offer convenient delivery, including same-day shipping in major cities. Moreover, they can give customers more information about the products.
Despite the growing influence of eCommerce, brick-and-mortar stores are not facing a looming crisis. Millennials are willing to pay more for an experience, rather than a material good. Millennials are willing to spend more for an experience, so a physical store's staff is still a significant advantage. The most important asset of brick-and-mortar stores is the staff. In-store staff can offer advice and a smile, which will make them feel more comfortable and confident while shopping.
Despite the recent e-commerce surge, the number of brick-and-mortar stores is likely to bounce back later this year or early next year. As the spread of vaccines in the US has made it safe to spend time at malls and shops, brick-and-mortar sales are continuing to grow. The slowdown in e-commerce sales can be attributed to the recent pandemic.
Consumers are becoming more aware of the benefits of e-commerce and its ability to provide more personalized service. However, many consumers still prefer a brick-and-mortar store over an online one, especially when it comes to price. This is one of the biggest advantages of shopping in the United States. It is easy to find what you're looking for, and prices are more competitive than ever.
The impact of online shopping on brick-andmortar stores can be detrimental
A study by the US Census Bureau has shown that 61% of consumers prefer to buy products in-store compared to 31% who prefer to shop online. Interestingly, the main reason for this difference is that in-store shopping is a more convenient option, and the internet offers more options than the typical retail experience.
While the Internet has many advantages, it has also caused a number of challenges for brick-and-mortar stores. The lack of a physical space is a big disadvantage. The absence of a storefront reduces sales. Unlike the previous era, ecommerce has benefited brick-and-mortar retailers by offering a wider range of products and prices. Millennials prefer to spend more on experiences rather than materials.
As a result of the e-commerce boom, the sales of brick-and-mortar stores are dwindling
While online sales are increasingly popular, online sales are taking money away from local economies. Consequently, e-commerce is a great way to make money, but the disadvantages of online shopping cannot be dismissed. For example, the impact of online shopping on brick-and-marts is not fully understood because e-commerce is not as popular as the offline retail market.
