Table of Content
- Why Offline Store / Physical Store are better ?
- Disadvantage of Offline Store/ Physical Store
- Why Online Store/ Web store are better ?
- Disadvantage of Online Store
1. Are you planning to start Business ?
2. Are you confused with Starting Physical Store or Online e-commerce store ?
If you are struggling with the above questions then you are at the right place.Please read the article and start your business with confidence.
Offline store or Physical stores are most common place where we purchases different types of articles in our own locality. In this types of store the shopkeeper/business owner physically own the entire product in their store.
Whereas in Online stores customer can purchase any item from the ecommerce websites. The owner of such type of websites either keeps the entire item in their own stock or link numbers of seller with them to sell their product on his website. Now a day online marketing is growing rapidly. There are various advantages and disadvantages of both these types of stores.
Advantage of Offline Store / Physical Store:
- The Seller receives the price of selling goods either instantly or he maintains the customer credit book. Mostly Seller receives the amount instantly.
- The buyer receives the item instantly on purchase.
- The buyer can physically check the product he/she is going to purchase. He/She can feel the quality of product.
- The buyer can buy product on credit but it depends on his good buying relations with the seller.
Disadvantage of Offline Store/ Physical Store:
- The seller should have physical store which can accommodate all his stock on display.
- The store should be in location where enough number of buyers can reach easily.
- The store owner is responsible for managing all the stocks of items in his store.
- The store owner will bear all profit and lose from his business.
- The Store owner has to pay all expenses like Cleanliness of the store, Air Conditioner and Electricity Charges, Manpower Cost, Room Rent etc.
- The Cost of selling goods offline is more since the seller has to pay number of things for selling a product. Therefore the buyer gets the same product at high cost as compared to online store.
- The store has limited numbers of customers.
- The buyers don’t have wide options as compared to online stores where multiple sellers sell wide variety of same product at competitive price.
Advantage of Online Store/ Web store:
- The sellers need not to have store/warehouse in the prime/costly location of the city.
- Through ecommerce website, seller will manage all his stocks.
- The owner of the website is free from almost any types of risk related to product. All the risk related to products like warranty, expiry etc. is born by either manufacturer or seller. But he must have proper agreement to serve his customer better.
- The seller receives the amount to his account immediately or after some fixed amount of time depends on Payment Gateway policy and seller and website owner agreement.
- The store is available to large number of customers across the country or the world. It all depends on the seller and website owner, where they want to sell. The seller can quickly sell large number of stock in less time if provides good offer and services.
- The Cost of making e-Commerce website and launching is very cheap as compared online store. It is just 2 to 5 % of the cost of establishing offline building cost.
- The running cost of online stores are also very less. It is just the cost of running a website which is less the electricity bill of the offline store.
Disadvantage of Online Store:
- The owner of the eCommerce website is responsible for all the cost related to popularizing his website. It includes huge advertisement cost.
- The owner of the eCommerce website has to pay huge on Search Engine Optimization (S.E.O) so that the website should come in organic search from any search engine.
- The seller has to pay per selling commission to website owner. The commission vary from 4% to 30% of selling price of the product.
- The seller has to pay, pay per selling (PPS) to Payment Gateway. The amount varies from 2 to 5%.
- The seller has to pay for the shipping charges for sending sold out product to customer premises. This amount can be taken from customer.
- The seller has to bear all wear/tear or any theft incurred during the shipping, before reaching the customer. But if the website owner provides the shipping facility to seller the shipper is responsible for all this risk.
As you have seen there are numbers of advantage and disadvantage of both types of stores. But in long run the growth of the owner/seller are much faster of the online business. We have seen many example of such market place like amazon, flipkart, shopclues, ebay etc. Whereas the offline store located in our locality didn’t performed well as compared to online stores. They are similar to a small seller in such big giants. Even the fast growing internet user , also enhances the future of online business.