{"id":270,"date":"2022-11-09T15:25:11","date_gmt":"2022-11-09T15:25:11","guid":{"rendered":"https:\/\/companyincorp.org\/blog\/?p=270"},"modified":"2023-07-17T15:03:41","modified_gmt":"2023-07-17T15:03:41","slug":"how-to-start-a-retail-business-online-vs-brick-and-mortar","status":"publish","type":"post","link":"https:\/\/companyincorp.org\/blog\/how-to-start-a-retail-business-online-vs-brick-and-mortar\/","title":{"rendered":"How to Start a Retail Business: Online vs Brick and Mortar"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/companyincorp.org\/blog\/how-to-start-a-retail-business-online-vs-brick-and-mortar\/#How_Does_a_Brick_and_Mortar_Store_Work\" >How Does a Brick and Mortar Store Work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/companyincorp.org\/blog\/how-to-start-a-retail-business-online-vs-brick-and-mortar\/#Retail_Trends_and_Statistics\" >Retail Trends and Statistics<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/companyincorp.org\/blog\/how-to-start-a-retail-business-online-vs-brick-and-mortar\/#How_a_traditional_storefront_can_compete_with_a_digital_store\" >How a traditional storefront can compete with a digital store<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/companyincorp.org\/blog\/how-to-start-a-retail-business-online-vs-brick-and-mortar\/#Pros_of_a_Brick_Mortar_Store\" >Pros of a Brick &amp; Mortar Store<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/companyincorp.org\/blog\/how-to-start-a-retail-business-online-vs-brick-and-mortar\/#Cons_of_a_Brick_Mortar_Store\" >Cons of a Brick &amp; Mortar Store<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/companyincorp.org\/blog\/how-to-start-a-retail-business-online-vs-brick-and-mortar\/#How_Do_Online_Stores_Work\" >How Do Online Stores Work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/companyincorp.org\/blog\/how-to-start-a-retail-business-online-vs-brick-and-mortar\/#Trends_Statistics_of_Online_Stores\" >Trends &amp; Statistics of Online Stores<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/companyincorp.org\/blog\/how-to-start-a-retail-business-online-vs-brick-and-mortar\/#Pros_Cons_of_Owning_an_Online_Storefront\" >Pros &amp; Cons of Owning an Online Storefront<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/companyincorp.org\/blog\/how-to-start-a-retail-business-online-vs-brick-and-mortar\/#Pros_of_an_Online_Store\" >Pros of an Online Store<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/companyincorp.org\/blog\/how-to-start-a-retail-business-online-vs-brick-and-mortar\/#Cons_of_an_Online_Store\" >Cons of an Online Store<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/companyincorp.org\/blog\/how-to-start-a-retail-business-online-vs-brick-and-mortar\/#Whats_the_best_option_for_you\" >What&#8217;s the best option for you?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/companyincorp.org\/blog\/how-to-start-a-retail-business-online-vs-brick-and-mortar\/#How_will_I_sell_my_products\" >How will I sell my products?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/companyincorp.org\/blog\/how-to-start-a-retail-business-online-vs-brick-and-mortar\/#How_Do_I_Identify_My_Ideal_Customer\" >How Do I Identify My Ideal Customer?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/companyincorp.org\/blog\/how-to-start-a-retail-business-online-vs-brick-and-mortar\/#What_Are_My_Competitors_Already_Doing\" >What Are My Competitors Already Doing?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/companyincorp.org\/blog\/how-to-start-a-retail-business-online-vs-brick-and-mortar\/#Contact_Us\" >Contact Us<\/a><\/li><\/ul><\/nav><\/div>\n<p>The United States, retail businesses make up a significant portion of the economic system. Despite COVID-19&#8217;s setbacks, retail is expected to reach nearly 6 trillion dollars in 2024. Although many entrepreneurs are fighting to get a slice of the pie, the new digital storefronts are still able to challenge the brick and mortar giants from the old days. If you&#8217;re a smaller company owner who&#8217;s deciding between starting an online or brick and mortar retail business we&#8217;re here to guide you. Read on to find out the latest findings from our research on market trends and figures, and the advantages and disadvantages of each option.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_Does_a_Brick_and_Mortar_Store_Work\"><\/span><strong>How Does a Brick and Mortar Store Work?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>&#8220;Bricks and Mortar&#8221; can be that is used to describe a typical business which provides products and services directly to customers via an open-air storefront. This physical space is owned by or leased by the company. One example would be an upscale corner-store gas station, or a main street bank. For a long time, massive shopping malls lined the American landscape and were the main way Americans decided to shop.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Retail_Trends_and_Statistics\"><\/span><strong>Retail Trends and Statistics<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>While many people mistakenly believe that physically-based retail businesses are closing, figures reveal a different picture. In 2020, there were more than 320,000 brick and mortar retail businesses across the U.S., with convenience stores accounting for the largest part of that. This expansion is driven by the consumer preferences. A recent study found that more than half those over 34 prefer to shop in stores than online.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_a_traditional_storefront_can_compete_with_a_digital_store\"><\/span><strong>How a traditional storefront can compete with a digital store<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Despite the support of consumers behind brick and mortar stores, they do not come without their risks. Below, we&#8217;ll look at the key aspects to think about prior to creating an online store that is traditional.<\/p>\n<h5><strong>Read More Blogs<\/strong><\/h5>\n<ul>\n<li><a href=\"https:\/\/companyincorp.org\/blog\/these-9-tips-will-help-you-increase-your-profit-margins\/\"><strong>These 9 Tips Will Help You Increase your Profit Margins<\/strong><\/a><\/li>\n<li> <a href=\"https:\/\/companyincorp.org\/blog\/open-a-business-checking-account-company-incorp\/\"><strong>Open a Business Checking Account | Company Incorp<\/strong><\/a><\/li>\n<li><a href=\"https:\/\/companyincorp.org\/blog\/how-to-start-an-llc-in-california\/\"><strong>How To Start an LLC in California<\/strong><\/a><\/li>\n<li> <a href=\"https:\/\/companyincorp.org\/blog\/start-an-offshore-company-in-the-uk-with-company-incorp\/\"><strong>Start an Offshore Company in the UK with Company Incorp<\/strong><\/a><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Pros_of_a_Brick_Mortar_Store\"><\/span><strong>Pros of a Brick &amp; Mortar Store<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A few advantages of establishing the brick and mortar retail business are:<\/p>\n<p>Opportunities to build relationships with customers<\/p>\n<p>Offering hands-on experiences to your customers<\/p>\n<p>Greater customer loyalty<\/p>\n<p>It is easier to market big-ticket items<\/p>\n<p>It is quicker to exchange or return items in-person<\/p>\n<p>There is no need to fret about shipping costs or the management<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Cons_of_a_Brick_Mortar_Store\"><\/span><strong>Cons of a Brick &amp; Mortar Store<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There are, however, some negatives to owning your own physical store, such as:<\/p>\n<ul>\n<li>You must pay rent or mortgage on an apartment<\/li>\n<li>The additional cost of utility and maintenance<\/li>\n<li>Staffing requirements in the store and for employment<\/li>\n<li>A high overhead is more difficult to compete in price<\/li>\n<li>Hours of operation for customers are limited.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"How_Do_Online_Stores_Work\"><\/span><strong>How Do Online Stores Work?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Like brick and mortar stores offer products and services to customers. However, an online establishment doesn&#8217;t have the physical location of their storefront. Instead their address is accessible 24\/7 via the internet. Customer support, transactions, and inventory management can be completed online as well as through a variety of applications and software. When you purchase a product, it are shipped internationally to the physical address provided by the buyer and digital goods and other services are delivered quickly through emails or any different digital ways of delivery.<\/p>\n<div style=\"float: left; width: 100%;\">\n<p><img decoding=\"async\" class=\"logoplaceholder\" style=\"width: 60px; height: 59px; margin-top: 10px; float: left; padding: 10px 10px;\" src=\"https:\/\/companyincorp.org\/blog\/wp-content\/uploads\/2022\/10\/message.png\" \/><\/p>\n<p class=\"strongp\" style=\"font-size: 20px; font-weight: bold !important; color: #222 !important; padding: 0 !important; margin: 7px;\"><a href=\"https:\/\/companyincorp.org\/setupnow\">Email us<\/a> anytime!<\/p>\n<p style=\"padding: 0px 0px 10px 0px; font-size: 20px;\">Email customer service 24\/7 at <a href=\"mailto:anna@companyincorp.org\">anna@companyincorp.org<\/a><\/p>\n<p><img decoding=\"async\" class=\"logoplaceholder\" style=\"width: 60px; height: 59px; float: left; padding: 10px 10px;\" src=\"https:\/\/companyincorp.org\/blog\/wp-content\/uploads\/2022\/10\/phone.png\" \/><\/p>\n<p class=\"strongp\" style=\"font-weight: bold !important; color: #222 !important; padding: 0 !important; font-size: 20px; margin: 7px;\">Call us anytime!<\/p>\n<p style=\"padding: 0px 0px 10px 0px; font-size: 20px;\">Reach customer care 24\/7 at <a href=\"tel:(617) 545-9902\"> (617) 545-9902<\/a><\/p>\n<\/div>\n<h3><span class=\"ez-toc-section\" id=\"Trends_Statistics_of_Online_Stores\"><\/span><strong>Trends &amp; Statistics of Online Stores<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>With huge online players such as Amazon changing the way physical stores are sold all over the world It&#8217;s no surprise that online stores will be around for the long haul. It&#8217;s not a surprise that the COVID-19 epidemic prompted a huge change in the retail industry into an increasingly online model. The majority of stores conduct business online today to cater to consumers who purchase 43 percent of their daily shopping purchases online.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Pros_Cons_of_Owning_an_Online_Storefront\"><\/span><strong>Pros &amp; Cons of Owning an Online Storefront<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If you&#8217;re opening your very first online store or trying to expand an existing retail store, online stores can open new revenue streams as well as unlimited possibilities for retailers. Below, we&#8217;ll go over the benefits and disadvantages of launching the first online store.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Pros_of_an_Online_Store\"><\/span><strong>Pros of an Online Store<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The advantages of online stores are numerous for the owners of their stores. In addition, you do not need to think about storage, manufacturing or even locating dropshipping shops. Online store pros include:<\/p>\n<ul>\n<li>The store is accessible 24\/7, 365 days of the year.<\/li>\n<li>There are no overhead expenses for an actual store<\/li>\n<li>A smaller number of employees are needed.<\/li>\n<li>You can automatize and outsource a lot of the buying experience<\/li>\n<li>Pay quickly online<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Cons_of_an_Online_Store\"><\/span><strong>Cons of an Online Store<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Simply because the store you have created is online isn&#8217;t a guarantee that it&#8217;s free to begin. There are a lot of expenses to start your online store, such as the purchase of a URL, designing and hosting your website, as well as additional services to offer customer support. A few of the major disadvantages of launching your online store might include:<\/p>\n<ul>\n<li>We are losing customers who prefer to touch and feel the product first.<\/li>\n<li>Not trusted by more senior customers<\/li>\n<li>It is difficult to sell large, expensive items, such as cars<\/li>\n<li>Strong competition from big online retailers such as Amazon and eBay<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Whats_the_best_option_for_you\"><\/span><strong>What&#8217;s the best option for you?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There are certain advantages and drawbacks to online as well as traditional establishments, the fact is that more and more businesses are opting for an alternative model that is hybrid. Established stores such as Best Buy, for example have transformed their showrooms into stores which focus on providing a great experience for their customers. <\/p>\n<aside style=\"width: 31%; margin-left: 15px; float: right; font-style: italic; background-color: lightgray;\"><img decoding=\"async\" style=\"height: 160px;\" src=\"https:\/\/companyincorp.org\/blog\/wp-content\/uploads\/2022\/11\/best-option-sub-images.png\" \/><\/aside>\n<p>They are also ramping the quality of their online presence and providing price matching in comparison to their most popular online competitors.<br \/>\nThis has enabled them to compete with other brick-and-mortar stores have had to shut their doors. When deciding what&#8217;s best for your company, think about asking yourself these questions:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_will_I_sell_my_products\"><\/span><strong>How will I sell my products?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Although you can sell almost anything online However, certain products or services are best online as well as in-person. Make sure to research prior to choosing which model of retail to follow. If you are selling expensive, tactile items it is possible to think about both to provide customers with an experience they can experience before purchasing.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"How_Do_I_Identify_My_Ideal_Customer\"><\/span><strong>How Do I Identify My Ideal Customer?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Additionally, do your customers research. The age of potential customers could be a good indicator of whether they&#8217;ll be willing to pay money to buy from your shop online instead of a brick and mortar storefront.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"What_Are_My_Competitors_Already_Doing\"><\/span><strong>What Are My Competitors Already Doing?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>If you&#8217;re not the first company to launch the same product or services, then you could benefit from researching your biggest competitors. Find out what other businesses offer similar products, and then try to take a lesson from their experiences prior to embarking on your own journey to retail.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Contact_Us\"><\/span><strong>Contact Us<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Contact <a href=\"https:\/\/companyincorp.org\/\">Company Incorp<\/a> today! Let us help you form a company with the help of our business experts.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The United States, retail businesses make up a significant portion of the economic system. Despite COVID-19&#8217;s setbacks, retail is expected to reach nearly 6 trillion dollars in 2024. Although many entrepreneurs are fighting to get a slice of the pie, the new digital storefronts are still able to challenge the brick and mortar giants from the old days. If you&#8217;re a smaller company owner who&#8217;s deciding between starting an online or brick and mortar retail business we&#8217;re here to guide you. Read on to find out the latest findings from our research on market trends and figures, and the advantages and disadvantages of each option. How Does a Brick and Mortar Store Work? &#8220;Bricks and Mortar&#8221; can be that is used to describe a typical business which provides products and services directly to customers via an open-air storefront. This physical space is owned by or leased by the company. One example would be an upscale corner-store gas station, or a main street bank. For a long time, massive shopping malls lined the American landscape and were the main way Americans decided to shop. Retail Trends and Statistics While many people mistakenly believe that physically-based retail businesses are closing, figures reveal [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":271,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-270","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-company-incorp"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How to Start a Retail Business: Online vs Brick and Mortar<\/title>\n<meta name=\"description\" content=\"Before starting an online retail business or opening a brick-and-mortar store, get an understanding of the latest consumer trends and statistics.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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