E-Commerce vs. Brick-and-Mortar Business
For centuries, stores and businesses have raised building structures to sell goods, products and services. The advent of the 21st century brought advanced technology and the rising popularity of selling goods online. How has the shift to e-business affected retailers?
Sears is a great example of commerce evolution. The company got its start in the 1800s and was a catalog company with warehouse storage and shipping before opening its first brick-and-mortar store shortly before the dawn of the 19th century. The well-known retailer has survived war, economic depression and recession and still turns a profit. Although Sears has begun to experience store closures, their online sales continue to expand. Other companies can tell a similar story.
A lot of familiar retailers like Sears have opened up their businesses to online sales stores that generally offer more products than what customers can buy in the store at the local mall. This addition is the most popular reason for e-tailers turning higher profits for their parent stores than the parent stores themselves. But is it a good thing? Online stores don't require employees the way brick-and-mortar stores do and jobs are lost when physical locations have to close. However, the increased profits from e-commerce almost doubles the company's bottom line.
Opening an online store is quite the Catch-22. Jobs may be lost at the same time a company sees a higher profit margin and strengthens their brand by expanding their Web presence. That said, a company that operates an online store might find more or new customers coming to their physical location after reading online reviews of a product. Although Internet access has resulted in a new and extremely popular way to shop for a variety of products, many customers still enjoy the experience of visiting a store and seeing exactly what they're getting before completing their transaction.
One business that has seen success by making the leap towards e-commerce is Family Leisure. The retailer, known for patio furniture, gas grills, above-ground pools and more, has leveraged its presence on social media networks to draw traffic to their online catalog. Many of their unique items, including hot tubs and spas, have been featured in decorating magazines, increasing their reach across several markets and drawing visitors to their website. Family Leisure is an excellent example of what online sales and e-commerce can do, especially when balanced with a storefront presence.
E-commerce success may simply rely on the type of company whose business has expanded to include an online store. General retailers will do best when they have a Web presence, brick-and-mortar stores and know what products will appeal to online and in-person consumers. As technology continues to progress, few stores will see great success if they don't have an online presence.
As stores gravitate more and more to the online world, business will continue to evolve. It can be argued that even the most niche retailer can benefit from expanding into online sales. The opportunities presented by online search might just bring a small-town store a new crop of customers and keep it in business, especially during trying economic times. It will be interesting to see how e-commerce continues to move business forward from its brick-and-mortar beginnings.
A lot of familiar retailers like Sears have opened up their businesses to online sales stores that generally offer more products than what customers can buy in the store at the local mall. This addition is the most popular reason for e-tailers turning higher profits for their parent stores than the parent stores themselves. But is it a good thing? Online stores don't require employees the way brick-and-mortar stores do and jobs are lost when physical locations have to close. However, the increased profits from e-commerce almost doubles the company's bottom line.
Opening an online store is quite the Catch-22. Jobs may be lost at the same time a company sees a higher profit margin and strengthens their brand by expanding their Web presence. That said, a company that operates an online store might find more or new customers coming to their physical location after reading online reviews of a product. Although Internet access has resulted in a new and extremely popular way to shop for a variety of products, many customers still enjoy the experience of visiting a store and seeing exactly what they're getting before completing their transaction.
One business that has seen success by making the leap towards e-commerce is Family Leisure. The retailer, known for patio furniture, gas grills, above-ground pools and more, has leveraged its presence on social media networks to draw traffic to their online catalog. Many of their unique items, including hot tubs and spas, have been featured in decorating magazines, increasing their reach across several markets and drawing visitors to their website. Family Leisure is an excellent example of what online sales and e-commerce can do, especially when balanced with a storefront presence.
E-commerce success may simply rely on the type of company whose business has expanded to include an online store. General retailers will do best when they have a Web presence, brick-and-mortar stores and know what products will appeal to online and in-person consumers. As technology continues to progress, few stores will see great success if they don't have an online presence.
As stores gravitate more and more to the online world, business will continue to evolve. It can be argued that even the most niche retailer can benefit from expanding into online sales. The opportunities presented by online search might just bring a small-town store a new crop of customers and keep it in business, especially during trying economic times. It will be interesting to see how e-commerce continues to move business forward from its brick-and-mortar beginnings.







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