In this modern world of technology, it might appear logical to start your retail business online. Whether it’s clothes you have made yourself or outfits you have sourced from other suppliers, you will be able to get started relatively quickly if you use your own website or an e-commerce site.
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But then again, you could start your business out in the real world instead. If you could afford to rent business premises, it might be that starting an offline retail store is the right thing to do. You would then have a place for people to browse your selection of clothing up close!
So, what is the right thing to do? Well, let’s look at the pros and cons of both options.
Online Retail
The Pros
With online retail, it is easy to get started. There are lots of free website builders out there, although, for the professional touch, you might still want to consider paying a web designer to create a website to truly reflect your brand. You could also use eBay, Amazon, Shopify, or any other e-commerce platform.
When you’re online, you wouldn’t necessarily need to recruit a startup team. You wouldn’t need to hire somebody to manage your store or secure your business premises, as in theory, you could work alone from your home.
With an online business, you could also be open 24 hours a day. You don’t need to be at the computer 24/7 to make a sale, as people will be able to buy with a click of a button on their computers. Provided you ship your items the following day, you would have very happy customers on your hands.
The Cons
There are clear advantages to having an online retail store, but there are disadvantages
The biggest problem would be your competition. You would face the same issue with an offline business, but there are far more startups happening online in this day and age, so your competition would be more fierce.
You would also have less customer contact. While it is relatively easy to market to your customers offline and online, you will find it harder to have a real conversation with them. It’s easier to upsell a product when you’re face to face, and less easy when you’re communicating through email or live chat.
Then there’s the issue of trust. With an offline store, customers could get to know you better. But when you’re a virtual seller, they might decide not to buy when they don’t know the face behind your business. This is especially true at the beginning when you might have little online presence and very few customer reviews.
Offline Retail
The Pros
When looking at the cons of online retail, you can flip them when looking at the pros of offline retail.
You would be in a position to meet your customers face to face, so you would have the opportunity to encourage them to buy. You could also answer their questions about your products in a quick and efficient way, so this is another reason why face to face contact is useful. As alluded to earlier, you might be able to encourage trust in your business too when talking to customers directly.
With offline retail, customers can also try on the clothes they see. They can also examine them more closely, and mix and match them with other items they like the look of. This can’t easily be achieved online, so there is clearly an advantage for both you and your customers here.
The Cons
The biggest con is obvious: the decline of high street retail. It is becoming harder for businesses to stay open, as many people prefer the convenience of shopping online.
You would also have to maintain your business premises. This would include the need to apply a fresh coat of paint on an annual basis to ensure your store looked the part, which can be both time-consuming and expensive. This task can be made easier with something from a spray gun supplier, although you would still need to shut up shop for a day. You would need to arrange and manage building repairs too, as health and safety would have to be a priority.
Then there’s the expense. Maintenance is one cost. but rent and utility bills are others. You would need to buy signage too, and the equipment to set up your store. You would also need to hire employees, as it would be difficult to manage your offline store alone.
So Which Is Better, Online Or Offline Retail?
This is up to you to decide as there are pros and cons to each. Of course, it might be that you take the multichannel approach and incorporate both, as you would then improve the chances of success. This could be the most logical answer. Still, consider your options, and make a plan, whichever route you decide for your retail business.
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