eCommerce has transformed how people shop, offering convenience, variety, and competitive pricing. With just a few clicks, consumers can browse and purchase products from anywhere they are. However, despite the undeniable success of online shopping, many eCommerce brands are now recognizing the value of having a physical presence as a retail strategy. In fact, Wayfair just opened its first-ever physical store in midyear 2024!
Brick-and-mortar stores provide unique advantages that complement online retail and can support business growth. Let’s explore why eCommerce businesses should consider opening a physical store as a retail strategy and how it can help them thrive in an increasingly competitive market.
Expanding Market Reach
A physical store can attract new customers who may not have discovered the brand online. While digital marketing is effective, it has limitations in reaching certain demographics. Some shoppers prefer in-person experiences or may not be as active online.
Additionally, a store in a high-traffic location can generate walk-in customers who might not have otherwise considered the brand. This increases brand exposure and creates new sales opportunities.
Leveraging Omnichannel Retailing
The future of retail lies in omnichannel strategies, where businesses offer the best of both online and offline shopping experiences. A brick-and-mortar store allows eCommerce brands to offer services like:
- Showrooming and Webrooming: Some customers prefer to browse products in-store before buying online (showrooming), while others research online before purchasing in-store (webrooming). A physical store caters to both shopping behaviors.
- Buy Online, Pick Up In-Store (BOPIS): Customers can order products online and pick them up at a nearby store, saving shipping costs and shortening delivery time.
- In-Store Returns for Online Purchases: This makes the return process more convenient for customers and reduces the hassle of shipping items back.
By integrating both online and offline channels, businesses can provide a seamless shopping experience that meets all the needs of modern consumers.
Strengthening Customer Relationships
Face-to-face interactions in a physical store allow businesses to build stronger customer relationships. Personalized service, friendly interactions, and a welcoming environment create a sense of connection that is difficult to achieve online.
This is also an opportunity to engage with consumers in conversations to better understand their needs and to drive more feedback back to the eCommerce part of the business on what matters to them.
In addition, loyalty programs, exclusive in-store discounts, and personalized recommendations further enhance customer retention. When shoppers feel valued and appreciated, they are likelier to return and recommend the brand to others.
Building Brand Trust and Credibility
A physical store gives an eCommerce brand a tangible presence, making it feel more legitimate and trustworthy. Many consumers are still hesitant to buy from online-only retailers or an item they have not seen or tried, especially if unfamiliar with the brand. A brick-and-mortar location reassures customers that the business is real and reliable.
A physical store also allows customers to return or exchange products easily, which can be a major factor in building trust. When shoppers know they have a convenient way to resolve issues, they are more likely to make a purchase confidently.
Moreover, a well-designed store reinforces brand identity. The store’s layout, decor, and ambiance can create a memorable experience that strengthens customer loyalty. In contrast, an online store relies solely on digital branding, which may not be as impactful.
eCommerce has revolutionized retail, but consumers still make most of their purchases in brick-and-mortar stores. Stores remain an essential part of a successful omnichannel retail strategy. A physical store can expand your target audience, enhance customer relationships, and build trust – all supporting business growth. By integrating online and offline channels, businesses can create a seamless shopping experience that meets the needs of modern consumers where they are and also create a cross-channel feedback loop for further improvement and growth.
For eCommerce brands looking to expand, opening a physical store is not just an option; it’s a strategic move that can drive long-term success—again, see the recent Wayfair or previous Amazon store openings.
