Are you contemplating the transition from a physical store to the digital marketplace? If you’re caught in the crossroads of the e-commerce versus retail debate, we’re here to guide you through the decision-making process. This page will delve into:
The distinctions between traditional retail and e-commerce
The contrasting shopping experiences in retail and e-commerce
Whether it’s wise to expand your business online
Strategies to establish a robust e-commerce presence
Continue reading to uncover all the essential details for creating a thriving online business! For more insightful tips and techniques on expanding your online business, subscribe to Revenue Weekly!
When weighing e-commerce against retail, understanding the nuances between the two is crucial. Both channels involve selling products from a business to a consumer, yet there are subtle differences:
Retail involves the sale of products in physical stores, through direct person-to-person interactions, or via direct mail.
E-commerce entails the sale of products exclusively through the Internet.
Many companies, such as Target, Walmart, and Old Navy, operate both physical and online stores, offering customers the flexibility to shop in-store or online.
When evaluating retail versus e-commerce, it’s vital to grasp the disparities in the shopping experience. E-commerce presents a distinct shopping experience compared to visiting a physical location, and we will explore the significant differences between the two business models.
Product Interaction
Retail: Consumers can physically engage with products
E-commerce: Rely on images, videos, and interactive features to understand products
The first aspect to consider when comparing e-commerce and retail is product interaction. Shopping in a physical store allows customers to physically examine products, making it easier to determine if they meet their needs and facilitate purchase decisions.
In e-commerce stores, physical interaction is challenging. However, high-quality visuals, videos, and interactive features such as 360-degree views and virtual try-ons can provide a comprehensive product experience for the audience. 
Product Acquisition
Retail: Immediate product acquisition
E-commerce: Product delivery takes time
Understanding how customers acquire products is essential when comparing e-commerce to retail sales. Physical stores provide immediate access to products, allowing customers to purchase items as soon as they find them.
This instant gratification is appealing for many consumers. In contrast, e-commerce requires time for products to be delivered. Companies like Amazon and Target offer expedited shipping options to minimize delivery times for customers.
Consumers are often willing to wait for shipping as a trade-off for the convenience of shopping from home. 
Shopping Accessibility
Retail: Shopping is limited to store operating hours
E-commerce: Shopping is available 24/7
For businesses with only physical stores, customers can only shop during store hours, which limits the sales window to the time the store is open.
E-commerce, however, allows customers to shop at any time that is convenient for them. Consumers can browse and purchase products whenever they prefer.
Customer Service
Retail: Direct interaction with store employees
E-commerce: Access to customer service representatives during specified hours, with chatbots available after hours
Both e-commerce and retail businesses offer robust customer service options. In retail, customers can interact directly with store employees while shopping.
This direct interaction allows for immediate answers to questions. In e-commerce, customers can chat online with customer service representatives to receive answers to their queries. For those shopping outside of customer service hours, chatbots can provide basic information.
Shopping Location
Retail: Requires travel to the physical store
E-commerce: Shopping can be done from home
The retail versus e-commerce debate highlights the need to travel for shopping. Physical stores necessitate travel to the store for a purchase, which may not be convenient for some consumers or those with limited time.
E-commerce, on the other hand, eliminates the need for travel. Consumers can shop from their devices at home, without the constraint of store hours or location.
Product Discovery
Retail: Finding products may require time and assistance from employees
E-commerce: Products can be quickly searched and located
When comparing e-commerce and retail, the process of finding products differs significantly. In physical stores, customers may spend more time searching for products, possibly needing assistance from store employees to locate items.
In e-commerce, products can be easily searched and found quickly by typing into the search bar.
This ease of product discovery makes shopping more efficient.
Shopping Time
Retail: Shopping can be time-consuming, involving browsing through aisles
E-commerce: Shopping can be quick and efficient
In a fast-paced world, time is a valuable commodity for shoppers. Physical stores often lead to more time spent browsing aisles and comparing products.
However, e-commerce allows for rapid and efficient shopping. Consumers can search for products, add them to the cart, and checkout quickly.
Now that you’ve seen both sides of the e-commerce versus retail debate, you might be pondering whether to expand your business online. If you aim to boost sales and revenue, consider establishing an e-commerce store. Here are some statistics to support the benefits of having an e-commerce store:
95% of purchases are projected to be made through e-commerce by 2040
90% of Americans are expected to purchase goods and services online by 2024
56% of in-store purchases are influenced by e-commerce
Clearly, e-commerce is a fundamental driver of sales. Expanding your business online can open new revenue streams for your company. Don’t miss out on potential revenue; it’s time to build your e-commerce store.
Ready to establish an e-commerce site? Here are four quick tips to get started:
1. Determine where to host your site
The initial step in creating an e-commerce site is selecting a hosting solution. Whether you opt for purchasing your own domain or using a platform like Shopify, decide where your website will reside.
2. Choose a design for your site
Your website is the first impression customers have of your business. Select a design that aligns with your company’s style, ensuring that your website reflects your brand.
3. Ensure your site can accommodate all your products
If you use a platform like Shopify or rely on a content management system (CMS) to manage your products, verify that it can handle the volume. If you offer 1000 products, ensure your site can support that number.
4. Invest in search engine optimization (SEO) to improve site visibility
SEO is crucial for ranking in relevant search queries, driving more traffic to your site and, consequently, more sales. Optimize your site to attract more qualified leads, from integrating relevant keywords to enhancing site load time.
As you can see, it’s not about choosing between e-commerce and retail but rather positioning your company as both. Establishing an online store can significantly boost sales and revenue. If you’re unsure of where to begin, contact our e-commerce and retail marketing agency at 888-601-5359 to speak with a strategist, or reach out online to discover how we can assist you in building an e-commerce store today!
