Retail Expansion from Bricks and Mortar to E-Commerce: What’s In It For You?
Retailers used to running physical stores can miss opportunities to sell and expand their business with E-Commerce. This article talks through the limitations of bricks-and-mortar, how E-Commerce can boost your business, and where to find the best retail E-Commerce help.
In this article:
- Why Bricks and Mortar Isn’t Enough for Retailers Anymore
- What E-Commerce Can Give Your Business
- How the Right Solution Can Crush Obstacles Easily
- The Impact of Bad Decisions on Subscription Retail SMBs
- The Secret to Good Decisions Is In Plain Sight
- AI-Driven Insights: How They Give You Everything You Need
A well-designed brick-and-mortar retail space can bring a lot of joy.
But it isn’t enough. Not these days.
They’re not enough to meet the demands of modern customers or to expand your consumer base.
If you want to expand, grow, and make your mark, it’s important to consider offering online shopping.
But as a retailer, adding an e-commerce strand and creating an online store might feel completely overwhelming. Where do you begin?
We’re here to reassure you that the shift is not as daunting as you may think. You just need good information and the right tools to start bringing in all the benefits that e-commerce delivers.
Why Bricks and Mortar Isn’t Enough for Retailers Anymore
Bricks-and-mortar stores do provide a shopping experience that many customers love. Around 94% of customers still shop in physical stores.
However, the exclusive brick-and-mortar store does have real limitations.
- Reach: You’re stuck with customers in your general geographic location, which means you cut your business off from the global market. At least 52% of shoppers shop internationally.
- Costs: Physical stores demand high overhead costs, including everything from rent, heating/AC, security, staff, etc. rent, utilities, etc. 6 in 10 experts say an online store is cheaper to start, and 8 out of 10 says it’s cheaper to run, with 75% saying bricks and mortar doesn’t break even as quickly.
- Consumer Behavior and Preference: It’s a fact that online shopping grows each year. Online retail sales around the world have dramatically risen from $1.3 trillion in 2014 to $4.4 trillion in 2023, and by 2027, it’s expected to hit $8 trillion, accounting for nearly a quarter of total retail sales.
Expanding your bricks and mortar store through E-Commerce will help you stay competitive. If you stay bricks-and-mortar only, you risk losing out to your competition because they will meet the customers where they are.
What E-Commerce Can Give Your Business
There are plenty of potential benefits of an online store. Here are a few of the most popular:
- Increased Reach and Accessibility – Not only will your brand be able to reach that global audience, but your products will be more accessible. And because your online store can run 24-7, your customers can buy what they want, when they want it.
- Scalability: You might be used to having to hire extra help to deal with much more seasonal demand, and those costs can add up. But growing your base (both temporarily and long-term) doesn’t necessarily stretch your resources in the same way. Most of the process is automated, and online fulfillment isn’t as costly as it is in-person (unless you’re selling massive products, like ships).
- Customer Insights: It can be difficult, if not impossible, to get in-person customers to fill out surveys and give feedback. But online, this comes without any effort. You get detailed and valuable analytics from your customer data. This helps you understand what they like and their behavior much more.
- Personalization: Not only does data give you information on segments and opportunities, but you can personalize shopping experiences for your customers. This boosts conversion rates and meets expectations while boosting your revenue by up to 40%.
These benefits are extremely tempting; every retailer could use each one of them.
Of course, creating an online store can feel daunting. There are important factors that a retailer has to consider.
A website has to be created (or expanded to accommodate E-Commerce). The site must contain an intuitive and user-friendly interface. It needs data and financial security for compliance and safety. Mobile optimization creates a great customer experience on the go. A rock-solid secure payment process brings you your cash.
Stock management is a little different too. Because customers can purchase your products at any time, stock levels can change frequently. This can require real-time updates. Fulfillment and delivery logistics have to be fast and efficient.
Rather than the 9-5 (or whatever your hours), customer service has to expand to 24-7 availability. Returns and exchange policies should be clear and easy for both parties.
At first glance, it sounds like a massive effort. But it doesn’t have to be. Not with the right solution.
How the Right Solution Can Crush Obstacles Easily
When you get the right software, things get a lot easier.
In fact, once the right solution is in place, you’re mostly to find you have more time to focus on the things you want to do.
Like interacting with customers, thinking about the future of your brand, and creating the best strategies moving forward. It’s the stuff you don’t have time to do because you’re stuck in permanent admin.
You might be wondering how that’s possible, but software can ease not only the creation of an e-commerce strand, but it can take care of the obstacles for you:
- Financial management: Everything from correct billing to automated payments (using the payment platforms that customers love), reconciliation, reports, and audit preparation can be a cinch that saves lots of money and time. It also ensures a hassle-free experience for you and your customers.
- Inventory: Real-time inventory tracking that perfectly suits 24-7 shopping will help you avoid the dreaded stockouts and overstocks, which saves you money and customer alienation while protecting you from emergency supplier exploitation.
- Customer Relationship Management (CRM): These systems give you invaluable insight into your existing and potential customers by crunching the data. You’ll discover customer behavior across regions and countries, pricing variations, segmentation, product/add-on recommendations, and everything else you need to offer that personalized experience they expect and love.
- Security: It can bring you robust security measures, including legal compliance (no matter which region you sell in) including SSL certificates, and PCI compliance. Everything that protects customer data and builds trust.
Conclusion
A retail brand needs everything possible to build and differentiate its brand.
Expanding from bricks and mortar to E-Commerce via an online store can give you the best of both worlds. All you need is the right solution to help you do it.
Curious about how a solution could put you on the right path? Book a free Discovery Call with our team today.
Let’s chat further.
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