Signs That Prove E-commerce Won’t Dominate Physical Stores?

//Signs That Prove E-commerce Won’t Dominate Physical Stores?

Many believe that E-commerce is actually dominating physical stores, however that is not true. Even though the e-commerce industry is increasing as each day goes by it still does not have a complete domination over physical stores and these signs will prove that.

  1. Stores have higher sales revenue

Even though the top 10 US retail stores have an e-commerce site, a larger percentage of the sales are earned through the physical store. Most people believe that e-commerce is taking over brick and mortar stores, however when you compare the figures, you will see that is not the case. Another fact is that the cost of e-commerce shopping has an added shipping cost, increased return and a lot more which decreases the overall profits.

  1. Physical chains

Out of the top 10 retail stores in the United States only one is an e-commerce store that is Amazon. The other nine retail stores are brick and mortar stores, these include; Target, Wal-Mart, Costco, Walgreens, Kroger Co., CVS, Lowes, Albertson’s and The Home Depot. Some of these stores like Wal-Mart are 55 years old and yet they generate a large percentage of revenue.

  1. Millennia’s prefer in-store experience

Millennia’s usually spend most of their time online surfing through social networking sites such as Facebook, Instagram and Twitter, thus one could expect their generation to prefer shopping online as it would be a more convenient option to them. However this is not the case, 70% of millennia’s prefer a brick and mortar store over an online shopping experience. Research shows that 80 million millennia’s alone in the US spend as much as $600 million in brick and mortar store generating more sales.

  1. Instant gratification

The greatest benefit of a brick and mortar store is instant gratification. This is one of the reasons why 49% of the consumers prefer brick and mortar over online shopping. Most online stores deliver goods within two to three days and in some cases some make deliveries within 24 hours. However at a physical store you can buy have the product within seconds.

  1. The ability to return goods easily

Another benefit of a physical store is that consumers can return products easily. On the other hand if a consumer shops online and wants to return it back they would have to pay an extra return fee. This is why people prefer to shop at a physical store. Due to this convenient option, online stores like Amazon have now started the option of a free return.

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By | 2018-04-16T23:09:58+00:00 May 1st, 2018|Blog|0 Comments