Introduction
The unceasing evolution of technology has continuously shaped the business sphere in complex ways. Notably, the Internet has become a handy tool in business, with many companies creating virtual stores on the web. This set of circumstances has led to the development of a struggle between online and brick-and-mortar stores globally. This topic has been selected because of its relevance to today’s inclination to technology as a primary element in carrying out business activities. Investors have been left wondering where they should put their time and effort into creating new retail outlets. This essay provides insight into the struggle between online and traditional brick-and-mortar stores as a result of present-day technological innovations.
Areas of Interest
Internet technology is providing a versatile platform in which many businesses can conduct their sales activities conveniently, cutting costs in areas such as marketing and transportation. The most notable aspect of online is reduced prices. The development of the Internet has increased the affordability of products and services among online retailers due to reduced overhead costs (Hänninen et al., 2019). With a relatively new mode of purchasing goods, a potential difference has been noted in the way consumers buy products from physical stores.
The second area of interest is convenience. Many consumers have shifted their attention to procure cheaper goods remotely from online retailers. The availability of increasingly stable and faster Internet makes essential changes in human behavior, rendering distance meaningless (Bodla & Saini, 2017). Buyers and sellers can carry out business transactions in a short time without any significant flaws in the process. A shift in online shopping habits is the most widespread and recognized change by the marketing community today (Hänninen et al., 2019). Consumers identify and compare different products online, which influences and facilitates their decision-making in aspects of shopping.
Although many buyers have switched to online shops, some of them still choose to purchase directly from brick-and-mortar stores because they value physical presence. The preference for buying particular goods or services, whether from a traditional or an online store, is significantly influenced by various factors such as the consumer’s personality, confidence in the seller, and demographic influences that affect purchasing decisions.
Research findings
It is undoubtful that one of the radical changes that have lately become apparent in the global business sphere is the snowballing rate of online shopping and electronic eCommerce. A recent demographic study indicates that virtual retailers have taken center stage in the marketplace, posing adverse challenges to brick-and-mortar stores (Bodla & Saini, 2017). Online shopping is classified as the third-most-popular online activity after emailing and web serving. E-retailing has many advantages over traditional storefronts because it offers greater convenience, flexibility, lower cost structures, wide-ranging product lines, customization, and more efficient transactions.
The success of the retail business is no longer about physical stores considering the snowballing number of virtual shopping interfaces available for consumers. By the end of 2017, there were over 620 million people that had completed online shopping transactions with leading shoppers (Bodla & Saini, 2017). An increasing number of firms are also identifying and exploiting business opportunities on the Internet. Fierce rivalry among e-retailers has compelled them to seek more innovative means to sustain a competitive edge in the virtual shopping sphere. This set of circumstances has slowed down the rate of sales for similar products in brick-and-mortar stores.
Proposed Solutions
Change is inevitable for many entrepreneurs whose business structure is based on conventional methods. The world of technology is changing dramatically with the continuous development of online consumer interfaces. Striking a balance between traditional and online shopping behavior is essential for maintaining a healthy business in the twenty-first century (Li et al., 2019). Web-based ventures are increasingly growing popular, and integrating them into brick-and-mortar stores can have a plethora of advantages. Giant online stores such as Amazon and Walmart are improving their investments in storefronts, which implies that traditional shops are an essential facet of the retail landscape (Bandoim, 2019). For those consumers who value physical presence, a blend of the two approaches will allow them to compare goods and check reviews online before they make actual purchases.
Integrating brick-and-mortar stores with virtual shopping will reduce advertisement costs as customers will have an opportunity to access company websites and view products (Li et al., 2019). Trust and loyalty in e-commerce settings have a direct effect on customers’ perceived service quality, which improves satisfaction. Retailers tend to believe that their buyers will always shop from their stores. However, as customers become accustomed to web-based channels, they develop more dislike for brick-and-mortar shops. Thus, traditional retailers need to create omnichannel strategies and keep abreast of eCommerce technology since it will play a critical role in boosting customer confidence and perceived service quality.
Conclusion
Although there has been a dramatic change in the manner in which people conduct shopping, some consumers still have a preference for physical stores. The future of shopping will be a combination of physical stores and Internet technology. The shopper will benefit from an abundance of information, improved transparency, and exclusive deals. Although this strategy is already working for some e-retailers, it should not be a nightmare for brick-and-mortar stores. Entrepreneurs holding onto traditional business models should embrace change quickly and allow the efficacy of the web to run their stores.
References
Bandoim, L. (2019). Can you integrate brick-and-mortar stores with online shopping? Forbes. Web.
Bodla, B.S. & Saini, P. (2017). Online shopping: a study of consumers’ preference for various products and e-retailers. TSMEJM, 7(2), 21-32.
Hänninen, M., Mitronen, L., & Kwan, S. K. (2019). Multi-sided marketplaces and the transformation of retail: A service systems perspective. Journal of Retailing and Consumer Services, 49, 380-388.
Li, Y., Li, G., Tayi, G. K., & Cheng, T. C. E. (2019). Omni-channel retailing: Do offline retailers benefit from online reviews? International Journal of Production Economics, 218, 43-61.