Opening a Store Online Makes More Dollars and Sense

Ribbon CuttingMore and more small businesses are moving away from a ‘brick-and-mortar’ retail store to an online e-commerce model. This isn’t exactly news, but the pace at which it’s going in this direction seems staggering. I was just talking with a friend of mine, who moved out to Phoenix several years back and opened up a successful retail store that specializes in figure skating gear. Some time later he launched an e-commerce version of his store called His online sales now account for approximately 70% of his business, with orders coming in from places as far as Australia and Saudi Arabia. His focus has now turned to managing his Google search advertising spend and SEO program, rather than dealing with print /radio advertising and in-store promotions.

The same is happening with larger chains like Discovery Channel who the Washington Post reports is now closing all their physical stores, while retaining its online store which experienced a 144% jump in sales in 2007. Anita Campbell of Small Business Trends accurately explains that the biggest driver of this movement is cost savings – no rent, utilities and in-store staff. And faster and far greater access to a global market to form your customer base.

1 Comment

Filed under advertising, Business, e-commerce, Hosting, Internet, marketing, Online marketing tactics, Retail, Selling, Small Business Marketing, Technology, Web Sites

One response to “Opening a Store Online Makes More Dollars and Sense

  1. As I can agree that moving online from the brick and mortar makes sense for established retailers, I can’t agree that moving a brick and mortar that is not cutting it offline will make it any better by moving online.
    Plus, many people are starting online when they need to be set up as a brick and mortar first. If for nothing else, the B&M will start the grass roots support of people who have come to the store, see that there is a real person behind the business and then support online operations if it starts.
    I consult a lot of the clients who are looking at some of the home base and MLM businesses as a business that they can start online. The trend today is consumer trust and the brick and mortar builds trust better and faster than an online operations. So my advice is to not move too fast online…it is better to get that customer base support and trust established by brick and mortar before going online. There are a lot of people jumping into the sea with others who are attempting to build trust online. Not too many are really making online… There is some value for going B&M first.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s