Now when we think retail we typically think of clothing stores. But retail can be broken down into a few different categories: store retail, specialty retail, non store retail, mail order retail, internet retail, and vending machines. (more…)
Online businesses have a distinct cost advantage over brick and mortar businesses – they don’t need to rent out a storefront at a good location. Their owners can save on rent overheads by running their business out of their homes.
Businesses that have a physical presence, though, have a distinct advantage in another way – people trust them more because they can see them. People buying from physical stores know that they are there for them, should a problem turn up.
They can look at the store assistants and the manager to see if they trust them through the buying process. If there’s a quality issue, it’s always easy to go back to the store for a return or exchange. They know that storefront retailers are serious businesses. They’ve invested money in launching a store and hiring people.