When putting up a retail business, one important aspect that needs a thorough analysis is the channel through which customers will be able to access products. Today, the two main channels are online and physical stores. Here’s a closer look at these two important retail channels.
Thanks to the Internet, it’s now easier than ever to operate a retail business without actually having to open a brick-and-mortar store. That said, online retailers need to see to the technological tools necessary to run an e-commerce retail business. Computers and an Internet connection are the basic tools needed, but services for satellite disaster recovery are also essential in helping e-commerce businesses stay online when natural calamities and other emergencies strike.
Brick-and-mortar stores are probably still the best way to make products available to consumers. Many people are still more inclined to buy goods that they’ve actually held than just seen on their computer screens. For a physical shop, retail entrepreneurs must take into account their target market when choosing the location. Additionally, how the store will be set up should be carefully planned.
Because the two types of stores are not mutually exclusive, retail business owners can also sell products over the Internet or in a physical shop. One very successful company employing this strategy is Amazon, which has already opened brick-and-mortar stores. Looking at this e-commerce giant, it seems more practical to start an online shop first before opening a physical store, as the former is relatively cheaper and easier to operate.
Whether it’s an online shop or a physical store, entrepreneurs must always be careful when selecting the best channels for their respective businesses.