{"id":12843,"date":"2023-11-17T20:11:35","date_gmt":"2023-11-17T17:11:35","guid":{"rendered":"https:\/\/adoric.com\/blog\/?p=12843"},"modified":"2024-01-14T12:54:00","modified_gmt":"2024-01-14T09:54:00","slug":"retail-vs-e-commerce-how-selling-online-differs-from-selling-retail","status":"publish","type":"post","link":"https:\/\/adoric.com\/blog\/retail-vs-e-commerce-how-selling-online-differs-from-selling-retail\/","title":{"rendered":"Retail vs E-commerce: How Selling Online Differs From Selling Retail"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">More businesses are going from offline to online. With over <\/span><a target=\"_blank\" href=\"https:\/\/www.statista.com\/topics\/871\/online-shopping\/#topicOverview\"><span style=\"font-weight: 400;\">5.7 million<\/span><\/a><span style=\"font-weight: 400;\"> in e-commerce sales, it offers huge opportunities for businesses to make sales and profit. Although selling retail may have declined steeply in recent years, it remains relevant and an integral part of retail.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Understanding the differences between these two approaches is crucial for any business looking to thrive in today\u2019s market.\u00a0 In this blog post, we\u2019ll explore the key differences between selling retail and e-commerce.<\/span><\/p>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-12845 lazyload\" data-src=\"https:\/\/adoric.com\/blog\/wp-content\/uploads\/2023\/11\/image1-3.png\" alt=\"\" width=\"1428\" height=\"598\" data-srcset=\"https:\/\/adoric.com\/blog\/wp-content\/uploads\/2023\/11\/image1-3.png 1428w, https:\/\/adoric.com\/blog\/wp-content\/uploads\/2023\/11\/image1-3-300x126.png 300w, https:\/\/adoric.com\/blog\/wp-content\/uploads\/2023\/11\/image1-3-768x322.png 768w\" data-sizes=\"(max-width: 1428px) 100vw, 1428px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1428px; --smush-placeholder-aspect-ratio: 1428\/598;\" \/><noscript><img decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-12845\" src=\"https:\/\/adoric.com\/blog\/wp-content\/uploads\/2023\/11\/image1-3.png\" alt=\"\" width=\"1428\" height=\"598\" srcset=\"https:\/\/adoric.com\/blog\/wp-content\/uploads\/2023\/11\/image1-3.png 1428w, https:\/\/adoric.com\/blog\/wp-content\/uploads\/2023\/11\/image1-3-300x126.png 300w, https:\/\/adoric.com\/blog\/wp-content\/uploads\/2023\/11\/image1-3-768x322.png 768w\" sizes=\"(max-width: 1428px) 100vw, 1428px\" \/><\/noscript><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_66_1 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >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: #999;color:#999\" 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: #999;color:#999\" 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-2'><a class=\"ez-toc-link ez-toc-heading-1\" target=\"_blank\" href=\"https:\/\/adoric.com\/blog\/retail-vs-e-commerce-how-selling-online-differs-from-selling-retail\/#How_E-commerce_Works\" title=\"How E-commerce Works\">How E-commerce Works<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" target=\"_blank\" href=\"https:\/\/adoric.com\/blog\/retail-vs-e-commerce-how-selling-online-differs-from-selling-retail\/#Dropshipping\" title=\"Dropshipping\">Dropshipping<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" target=\"_blank\" href=\"https:\/\/adoric.com\/blog\/retail-vs-e-commerce-how-selling-online-differs-from-selling-retail\/#Direct-to-Customer\" title=\"Direct-to-Customer\">Direct-to-Customer<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" target=\"_blank\" href=\"https:\/\/adoric.com\/blog\/retail-vs-e-commerce-how-selling-online-differs-from-selling-retail\/#How_Selling_Retail_Works\" title=\"How Selling Retail Works\">How Selling Retail Works<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" target=\"_blank\" href=\"https:\/\/adoric.com\/blog\/retail-vs-e-commerce-how-selling-online-differs-from-selling-retail\/#Differences_Between_E-commerce_and_Retail\" title=\"Differences Between E-commerce and Retail\">Differences Between E-commerce and Retail<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" target=\"_blank\" href=\"https:\/\/adoric.com\/blog\/retail-vs-e-commerce-how-selling-online-differs-from-selling-retail\/#1_Capital\" title=\"1. Capital\">1. Capital<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" target=\"_blank\" href=\"https:\/\/adoric.com\/blog\/retail-vs-e-commerce-how-selling-online-differs-from-selling-retail\/#2_Products\" title=\"2. Products\">2. Products<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" target=\"_blank\" href=\"https:\/\/adoric.com\/blog\/retail-vs-e-commerce-how-selling-online-differs-from-selling-retail\/#3_Cost_of_Operation\" title=\"3. Cost of Operation\">3. Cost of Operation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" target=\"_blank\" href=\"https:\/\/adoric.com\/blog\/retail-vs-e-commerce-how-selling-online-differs-from-selling-retail\/#4_Convenience\" title=\"4. Convenience\">4. Convenience<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" target=\"_blank\" href=\"https:\/\/adoric.com\/blog\/retail-vs-e-commerce-how-selling-online-differs-from-selling-retail\/#5_Customer_Support_Services\" title=\"5. Customer Support Services\">5. Customer Support Services<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" target=\"_blank\" href=\"https:\/\/adoric.com\/blog\/retail-vs-e-commerce-how-selling-online-differs-from-selling-retail\/#Similarities_in_Selling_Online_vs_Retail\" title=\"Similarities in Selling Online vs Retail\u00a0\">Similarities in Selling Online vs Retail\u00a0<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" target=\"_blank\" href=\"https:\/\/adoric.com\/blog\/retail-vs-e-commerce-how-selling-online-differs-from-selling-retail\/#1_Brand_Identity\" title=\"1. Brand Identity\">1. Brand Identity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" target=\"_blank\" href=\"https:\/\/adoric.com\/blog\/retail-vs-e-commerce-how-selling-online-differs-from-selling-retail\/#2_Product_Arrangement_and_Layout\" title=\"2. Product Arrangement and Layout\">2. Product Arrangement and Layout<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" target=\"_blank\" href=\"https:\/\/adoric.com\/blog\/retail-vs-e-commerce-how-selling-online-differs-from-selling-retail\/#3_Mode_Of_Operation\" title=\"3. Mode Of Operation\">3. Mode Of Operation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" target=\"_blank\" href=\"https:\/\/adoric.com\/blog\/retail-vs-e-commerce-how-selling-online-differs-from-selling-retail\/#4_Risk\" title=\"4. Risk\">4. Risk<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" target=\"_blank\" href=\"https:\/\/adoric.com\/blog\/retail-vs-e-commerce-how-selling-online-differs-from-selling-retail\/#4_Return_Policy\" title=\"4. Return Policy\">4. Return Policy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" target=\"_blank\" href=\"https:\/\/adoric.com\/blog\/retail-vs-e-commerce-how-selling-online-differs-from-selling-retail\/#5_Product_Delivery\" title=\"5. Product Delivery\">5. Product Delivery<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" target=\"_blank\" href=\"https:\/\/adoric.com\/blog\/retail-vs-e-commerce-how-selling-online-differs-from-selling-retail\/#Factors_to_Consider_When_Choosing_Retail_vs_E-commerce\" title=\"Factors to Consider When Choosing Retail vs E-commerce\">Factors to Consider When Choosing Retail vs E-commerce<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" target=\"_blank\" href=\"https:\/\/adoric.com\/blog\/retail-vs-e-commerce-how-selling-online-differs-from-selling-retail\/#1_Business_Model\" title=\"1. Business Model\">1. Business Model<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" target=\"_blank\" href=\"https:\/\/adoric.com\/blog\/retail-vs-e-commerce-how-selling-online-differs-from-selling-retail\/#2_Target_Audience\" title=\"2. Target Audience\">2. Target Audience<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" target=\"_blank\" href=\"https:\/\/adoric.com\/blog\/retail-vs-e-commerce-how-selling-online-differs-from-selling-retail\/#3_Cost_Overheads\" title=\"3. Cost Overheads\">3. Cost Overheads<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" target=\"_blank\" href=\"https:\/\/adoric.com\/blog\/retail-vs-e-commerce-how-selling-online-differs-from-selling-retail\/#4_Integration\" title=\"4. Integration\">4. Integration<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-23\" target=\"_blank\" href=\"https:\/\/adoric.com\/blog\/retail-vs-e-commerce-how-selling-online-differs-from-selling-retail\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"How_E-commerce_Works\"><\/span><span style=\"font-weight: 400;\">How E-commerce Works<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">E-commerce simply means buying and selling goods or services over the internet. It does not require physical structure or manual display of products. Here, sales are made in the online store or through any social channel.\u00a0<\/span><\/p>\n<p><b>Direct-to-customers <\/b>and<b> Dropshipping <\/b><span style=\"font-weight: 400;\">are the two methods of e-commerce sales that differ in their modes of operation.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Dropshipping\"><\/span><span style=\"font-weight: 400;\">Dropshipping<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a target=\"_blank\" href=\"https:\/\/adoric.com\/blog\/shopify-dropshipping-tips-and-strategies-for-success\/\"><span style=\"font-weight: 400;\">Dropshipping<\/span><\/a><span style=\"font-weight: 400;\"> involves a third party, mostly wholesalers or manufacturers of the products who take care of order fulfilment and product shipment to the customer. In return, the retailer focuses on marketing and other areas of the business. New to Shopify, here are the <\/span><a target=\"_blank\" href=\"https:\/\/adoric.com\/blog\/15-dropshipping-suppliers-for-shopify\/\"><span style=\"font-weight: 400;\">15 best dropshipping apps<\/span><\/a><span style=\"font-weight: 400;\"> to try in your store.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Direct-to-Customer\"><\/span><span style=\"font-weight: 400;\">Direct-to-Customer<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">The retailers own their inventory and sell and ship directly to customers. Third-party retailers or wholesalers are not involved here.<\/span><\/p>\n<p><b>Steps to creating your e-commerce store<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">First, create an online storefront, either a website or an app. This store features your product catalog that lists items and products available for purchase.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">From the catalog, customers can select products of their choice and add them to the shopping cart which is then processed at the checkout after payment.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Once payment is confirmed, the business is responsible for order fulfillment, shipped to the customer through its courier services or a third-party logistic provider.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Real-time tracking information is typically provided to the customer, allowing them to monitor the status of their order.\u00a0<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"How_Selling_Retail_Works\"><\/span><span style=\"font-weight: 400;\">How Selling Retail Works<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Retail selling is the conventional way of selling. It begins with the manufacturing of a product and ends with a consumer buying the product through retailers. It involves physical interactions between the buyer and sellers where customers can see and feel a product before making purchases.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Popularly known as the brick-and-mortar store, physical retail is complex. However, it plays a significant role in the global economy. In 2021, global retail sales were around $26.4 trillion and are projected to increase to around <\/span><a target=\"_blank\" href=\"https:\/\/www.statista.com\/statistics\/443522\/global-retail-sales\/\"><span style=\"font-weight: 400;\">$32.8 trillion <\/span><\/a><span style=\"font-weight: 400;\">by 2026.<\/span><\/p>\n<p><b>How does selling in retail work?<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The process starts with retailers setting up their physical stores and designing an attractive and efficient layout to encourage customers to explore the store, find products easily and make the checkout process easier.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Next is to decide what products to sell, supplier negotiation etc.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Then, the inventory management which includes forecasting, ordering products and maintaining optimal stock levels. Setting the right prices for products while considering cost, competition and perceived product value.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Lastly, marketing through their store or online platforms to reach potential customers and draw them into their stores.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Differences_Between_E-commerce_and_Retail\"><\/span><span style=\"font-weight: 400;\">Differences Between E-commerce and Retail<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There are notable differences between e-commerce and retail in terms of product, pricing, personal shopping experience etc.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_Capital\"><\/span><span style=\"font-weight: 400;\">1. Capital<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Setting up a physical retail store is capital and labour-intensive. It requires funds to cater for rent, lease, inventory purchase, marketing, insurance and other legal procedures.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While e-commerce requires little to no capital, all you need is to create an online presence. This includes buying and hosting your domain, creating your online store, and investing in marketing tools and <\/span><a target=\"_blank\" href=\"https:\/\/adoric.com\/blog\/10-tips-for-efficient-e-commerce-inventory-management\/\"><span style=\"font-weight: 400;\">inventory<\/span><\/a><span style=\"font-weight: 400;\"> for your store. Inventories are not necessary if you are into dropshipping.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Products\"><\/span><span style=\"font-weight: 400;\">2. Products<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">In physical retailing, products are physically displayed where customers can see, touch and feel the product before the buying decisions. E.g. furniture, clothing, equipment etc. Even without a product description, you can match the size of each product with yours by merely looking at it.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In an online store, product images, descriptions and reviews influence buyers&#8217; decisions. Bad ratings or blurry product images can affect purchases which affects revenue. However, shopping online gives you more room for price comparison from different e-commerce stores which helps to make better buying decisions.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, customers can feel the texture of clothing in stores before purchase, unlike online stores where you can only read the product description. Also, there are instances where smaller items are magnified on e-commerce stores and sold to customers as bigger items only for customers to be disappointed when the product is delivered. It is so bad that at least <\/span><a target=\"_blank\" href=\"https:\/\/www.invespcro.com\/blog\/ecommerce-product-return-rate-statistics\/\"><span style=\"font-weight: 400;\">30%<\/span><\/a><span style=\"font-weight: 400;\"> of online products are returned compared to 8% in brick-and-mortar shops.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Cost_of_Operation\"><\/span><span style=\"font-weight: 400;\">3. Cost of Operation<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Overhead and Operational cost in brick-and-mortar shop is higher when compared to an online store. Retail stores require more manual work involving workers, the cost of maintaining employees, annual rents and legal and unavoidable costs.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While the cost is minimal in an e-commerce store since there is little or no labour, no physical location or inventories. Besides e-commerce processes are automated to increase efficiency and productivity from effective inventory management to <\/span><a target=\"_blank\" href=\"https:\/\/adoric.com\/blog\/10-ai-tools-for-e-commerce\/\"><span style=\"font-weight: 400;\">AI tools for ecommerce.\u00a0<\/span><\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Convenience\"><\/span><span style=\"font-weight: 400;\">4. Convenience<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">One advantage of online shopping is that you can do so anywhere from your phone, you don&#8217;t have to visit a store to shop. Browse a store and place an order immediately without having to stand in line or request help from a store rep. The only challenge is that you don\u2019t instantly get what you order, it may take a while for your product to get shipped to you.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While in retail, you get your product once payment is verified. However, you can only do so while you are in the store and visiting the store can be stressful and time-consuming, however, the instant gratification of returning home with your product is worth it.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Customer_Support_Services\"><\/span><span style=\"font-weight: 400;\">5. Customer Support Services<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">You don\u2019t need customer support while shopping online and waiting on customer support to rectify problems can be frustrating when shopping online unlike the physical retail store where support is always available to assist you when needed and help in the checkout process.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Similarities_in_Selling_Online_vs_Retail\"><\/span><span style=\"font-weight: 400;\">Similarities in Selling Online vs Retail\u00a0<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"1_Brand_Identity\"><\/span><span style=\"font-weight: 400;\">1. Brand Identity<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Whether you are an online or a brick-and-mortar shop, your brand identity matters. It gives your brand an identity and differentiates you from your competitors. <\/span><a target=\"_blank\" href=\"https:\/\/adoric.com\/blog\/branding-your-shopify-store-benefits-tips-and-strategies\/\"><span style=\"font-weight: 400;\">Branding<\/span><\/a><span style=\"font-weight: 400;\"> from scratch can be daunting, but building with the right strategies makes branding easy.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Product_Arrangement_and_Layout\"><\/span><span style=\"font-weight: 400;\">2. Product Arrangement and Layout<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Cleaner layout and product arrangement make the shopping experience easier and faster for both retail and online stores. Valuable products are placed at eye level and in visible places where they are easily seen. For online stores, <\/span><a target=\"_blank\" href=\"https:\/\/adoric.com\/blog\/optimizing-mobile\/\"><span style=\"font-weight: 400;\">product recommendations<\/span><\/a><span style=\"font-weight: 400;\"> are also one of the ways to introduce products to your customers.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_Mode_Of_Operation\"><\/span><span style=\"font-weight: 400;\">3. Mode Of Operation<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Although the cost and mode of operation may differ between the physical and online shops, it cannot be denied that it is essential for business success. Most businesses rely on it to track costs and manage inventory.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Risk\"><\/span><span style=\"font-weight: 400;\">4. Risk<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Risk is inevitable. Be it online or offline, every business opens itself up to some level of risk, whether it is the risk of liabilities ie the risk of being held accountable for action or inactions, whether or not at fault e.g use of products or injuries within the premises, and risk of theft.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"4_Return_Policy\"><\/span><span style=\"font-weight: 400;\">4. Return Policy<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><a target=\"_blank\" href=\"https:\/\/blog.gitnux.com\/ecommerce-return-statistics\/#:~:text=Highlights%3A%20The%20Most%20Important%20Ecommerce,brick%2Dand%2Dmortar%20stores.\"><span style=\"font-weight: 400;\">30%<\/span><\/a><span style=\"font-weight: 400;\"> of products ordered online are returned while 8.89% are returned in brick-and-mortar stores. In 2022, 10% of online returned orders were fraudulent which resulted in $22.8 billion lost in return fraud. Though online shoppers will choose companies with a return policy over one without, it is important to create an effective policy to keep returns at their lowest.\u00a0<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"5_Product_Delivery\"><\/span><span style=\"font-weight: 400;\">5. Product Delivery<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Depending on the product size and proximity to the store, physical retailers offer product delivery to customers for a more personalized shopping experience and an increase in trust and loyalty. In addition, frequent retail customers may request for their preferred products to be delivered through a local courier or logistic company.\u00a0<\/span><\/p>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-12846 lazyload\" data-src=\"https:\/\/adoric.com\/blog\/wp-content\/uploads\/2023\/11\/image2-2.png\" alt=\"\" width=\"1516\" height=\"849\" data-srcset=\"https:\/\/adoric.com\/blog\/wp-content\/uploads\/2023\/11\/image2-2.png 1516w, https:\/\/adoric.com\/blog\/wp-content\/uploads\/2023\/11\/image2-2-300x168.png 300w, https:\/\/adoric.com\/blog\/wp-content\/uploads\/2023\/11\/image2-2-768x430.png 768w\" data-sizes=\"(max-width: 1516px) 100vw, 1516px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 1516px; --smush-placeholder-aspect-ratio: 1516\/849;\" \/><noscript><img decoding=\"async\" loading=\"lazy\" class=\"alignnone size-full wp-image-12846\" src=\"https:\/\/adoric.com\/blog\/wp-content\/uploads\/2023\/11\/image2-2.png\" alt=\"\" width=\"1516\" height=\"849\" srcset=\"https:\/\/adoric.com\/blog\/wp-content\/uploads\/2023\/11\/image2-2.png 1516w, https:\/\/adoric.com\/blog\/wp-content\/uploads\/2023\/11\/image2-2-300x168.png 300w, https:\/\/adoric.com\/blog\/wp-content\/uploads\/2023\/11\/image2-2-768x430.png 768w\" sizes=\"(max-width: 1516px) 100vw, 1516px\" \/><\/noscript><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Factors_to_Consider_When_Choosing_Retail_vs_E-commerce\"><\/span><span style=\"font-weight: 400;\">Factors to Consider When Choosing Retail vs E-commerce<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Below are some of the factors to consider when choosing between retail and e-commerce.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_Business_Model\"><\/span><span style=\"font-weight: 400;\">1. Business Model<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Some businesses thrive better as retail stores than online, especially when they require face-to-face interaction. Therefore, it\u2019s important to ask the right questions before setting up your store.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Target_Audience\"><\/span><span style=\"font-weight: 400;\">2. Target Audience<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Demographics<\/b><span style=\"font-weight: 400;\"> &#8211; Consider the age, location and preference of your target audience. Younger, tech-savvy consumers may prefer e-commerce, while older individuals might still prefer the in-person experience of retail.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Accessibility &#8211; Think about how accessible your products are to your target audience. E-commerce can reach a broader audience, while retail might be more localized.\u00a0<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"3_Cost_Overheads\"><\/span><span style=\"font-weight: 400;\">3. Cost Overheads<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Startup Costs &#8211; E-commerce typically has lower startup costs than traditional retail, as it requires physical store space, inventory and more staff members.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Operating Costs &#8211; Consider ongoing expenses like rent, utilities and staff salaries. E-commerce may have a lower overhead, but it requires investments in technology and digital marketing.<\/span><\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"4_Integration\"><\/span><span style=\"font-weight: 400;\">4. Integration<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Consider if you can benefit from integrating both retail and e-commerce. Some businesses operate hybrid models, offering the best of both worlds to cater to different customer preferences.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><span style=\"font-weight: 400;\">Conclusion<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Ultimately, the decision between retail and e-commerce should be based on a comprehensible analysis of these factors and a clear understanding of your business\u2019s unique strengths, weaknesses, and goals. It\u2019s also worth considering hybrid models that combine both approaches to leverage the strengths of each while mitigating their respective weaknesses.<\/span><\/p>\n<p>Looking to jumpstart your e-commerce journey with more sales? Add Adoric to your Shopify app tools to experience a 5x boost in conversion and sales.<\/p>\n<p style=\"text-align: center;\"><a target=\"_blank\" href=\"https:\/\/adoric.com\/shopify-adoric?utm_source=adoric&amp;utm_medium=blog&amp;utm_campaign=bottom_click\" rel=\"noopener\" class=\"big-button shopify-cta-button\">Add Adoric to Shopify<\/a><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>More businesses are going from offline to online. With over 5.7 million in e-commerce sales, it offers huge opportunities for<\/p>\n","protected":false},"author":68,"featured_media":12844,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false},"categories":[32],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.11 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Retail vs E-commerce: How Selling Online Differs From Selling Retail - Adoric Blog<\/title>\n<meta name=\"description\" content=\"What differences exist between selling retail and selling ecommerce? We reviewed the exclusive differences. 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