In the wake of COVID-19, retail business owners realized that e-commerce presents a lucrative opportunity that can eliminate the need for a brick-and-mortar store. Some retailers assumed the wave was temporary and things would eventually return to how they were, but online e-commerce store owners knew that would not happen.

E-commerce businesses continue to grow, leaving little room for brick-and-mortar stores to thrive. Does this mean e-commerce stores will eliminate brick-and-mortar stores? Should you consider online selling items now that the industry is stable enough? 

Before we answer that, it’s crucial to understand how and why e-commerce stores are thriving, and brick-and-mortar stores are not. Only then can we determine how e-commerce fits in your future. 

How Do Online E-commerce Stores Replace Brick and Mortar Stores?

The upward growth of online e-commerce stores tells us that the basic principles have also evolved with the method of conducting business. As there’s no need for a physical store when a website and an online payment system can take care of everything, e-commerce retailers have realized that buying inventory from overseas manufacturers and suppliers is more cost-effective than getting local products. 

It gives them the profit margin that keeps their customers happy with reasonable prices and protects them from business expenses like rent, furniture, employees, etc. They also do not need to keep the inventory on hand, which is not an option for a physical store. 

Another reason e-commerce stores are easily eliminating brick-and-mortar stores is visibility. Unlike a physical store, they do not have opening and closing hours, which is convenient for customers. Moreover, e-commerce stores can have a global approach when they decide to scale, which has been true for many e-commerce businesses in the past decade or so. 

Reasons for E-commerce Growth Compared to Brick and Mortar Stores

Online e-commerce stores have several advantages which make it easier for online retailers to grow their business and earn more profit than any brick-and-mortar store. Listed below are some reasons why e-commerce stores are obliterating physical stores:

Multiple Platforms

E-commerce businesses are going beyond the one-store and one-location concept. Given the need to protect their online business that can receive a red flag for no particular reason, e-commerce store owners sell their products on multiple platforms to retain customers and increase sales. Physical stores have limitations in this regard. 

No Physical Location Required

E-commerce stores improve the virtual experience of their customers by eliminating the need to visit a physical store. A website listed with the products a customer wants can go where the customer is, rather than expecting them to find the store’s physical location. 

Collaborative Approach

Physical stores compete more than e-commerce stores because their profit margin is limited. Their marketing tactics are entirely different compared to e-commerce store owners, who understand the concept of collaboration and cross-promotional marketing. 

Should You Own an Online E-Commerce Store?

E-commerce has changed the dynamics of the retail world and almost eliminated the need for brick-and-mortar stores. The industry is expected to grow 23.4% in the upcoming years. It will be a $7.3 trillion industry by 2025, and you can take a large piece of this retail pie! All you need to do is open an online e-commerce store and develop your brand today!