The online retail market is slated to reach $6.3 trillion in 2023, accounting for one in five retail purchases worldwide. In an increasingly digitally enabled marketplace, the rapid growth of online shopping is hardly a surprise.
Of course, the pandemic accelerated the transition of shoppers from in-store to cyberspace as brick-and-mortar shops shuttered. It provided a taste of a unique shopping experience that was new to large swaths of consumers. With the lifting of the pandemic restrictions, some have shifted back to their familiar in-store activities, while others remained online. But which is really better—online or in-
store? Let’s take a look in more detail.
Online Shopping: What You Need to Know
From groceries to clothes, electronics, and even medication, eCommerce stores cater to every whim and fancy of today’s consumer.
Their unique business models provide useful insights into their benefits and drawbacks.
Pros:
Convenience is a major factor that drives traffic into e-retail stores. You can shop any time you want—night or day, find products faster than when shopping in-store, and have them delivered right to your doorstep. All these can save a substantial amount of productive time.
Online retailers also provide you access to more product varieties and choices. Amazon, eBay, and similar marketplaces, for instance, host thousands of vendors from all over the world and offer a safe environment for you to purchase from a global pool of retailers.
And the more vendors there are, the stiffer the competition between them to grab consumer attention. The result is usually discounts and promotions that are hard to find at physical stores.
At the same time, online retailers have low overhead costs—they have no real need for shop assistants or fancy stores with lighting, air conditioning, heating, security systems, and building leases. This allows them to reduce their cost base and offer better prices.
Another important feature is access to information. With online shopping, you can compare product information and prices with a click of a button. Finding shopper reviews is equally easy. In fact, according to studies, nine out of ten people rely on reviews to make better-informed online purchasing decisions.
Staying up-to-date is also easier. Many online retailers offer email and in-app alerts of new products, discounts, and deals. They can also remind you about items you have left in your cart and recommend new products based on your purchasing preferences.
Cons
The most significant disadvantage of online shopping is the inability to touch and feel what you want to buy. While vendors often provide photos, detailed descriptions, and even video demonstrations, none of these can compare to physically trying an item. This is especially important when purchasing high-
value, personal, or complex products such as mobile phones, jewelry, and cars.
Another challenge is accessibility. Lack of tech literacy is a major hindrance preventing many people, especially the older generations, from accessing e-retail. It is little wonder, then, that tech-savvy Millennials lead the way in online shopping, with Baby Boomers lagging behind.
Cyber safety is an obvious concern, too. Identity theft and financial fraud, in particular, are rampant in the eCommerce space. There are many ways you can become a victim. For example, scammers could hack into a popular eCommerce site and steal your credit card details. Or, they could spoof a well-known website to download malware onto your devices.
Therefore, minding your safety is critical when shopping online. Never trust anyone that claims to represent eCommerce vendors. Avoid clicking on online ads, downloading attachments shared on emails, or providing credit card details over the phone. Authenticate sources by searching their contact numbers on PhoneHistory and email addresses on their company websites. Purchase through popular marketplaces that often have buyer protection policies to safeguard customers.
In-Store Shopping: The End of an Era?
With nearly 80% of purchases still taking place in physical stores, in-store shopping is far from over. This is why its distinct benefits and disadvantages demand a closer look.
Pros
Shopping in-store is an experience of its own. You get to meet and greet people with whom, over time, you will build relationships that will likely last for years. This human connection is an important reason for the continued popularity of physical stores, particularly among older shoppers.
You also get to see, test, or experience products before paying. When you are purchasing clothes, for instance, trying them out first could make a huge difference when deciding what to buy. It also eliminates the hassle of returning items and finding alternatives.
In addition, for some consumers, the ability to acquire what they want without delivery delays or fees is an essential factor influencing their preference for in-store purchasing.
Cons
Shopping at physical stores is undeniably time-consuming and requires more effort. For instance, you must drive all the way to a shop, find parking, navigate aisle after aisle to find products, and wait in queues to make payments.
There is also no guarantee of finding what you want at the first store you arrive. You may need to visit several places to purchase different items. Your shopping experience is further limited by store opening hours, which may not always be convenient based on your personal schedule.
The limited information available to make a sound judgment is another drawback. You will typically need to rely on the packaging, shop assistants, or store displays to obtain accurate details. But what they provide is often incomplete and biased. Finding customers who could share first-hand product experiences is also difficult.
Moreover, prices are relatively higher at many physical stores. The overheads and staff costs are the most significant contributors to their thin margins and higher retail price tags.
The Final Verdict
So, is online shopping better than the traditional in-store options? Or, is the physical buying experience still superior to its digital alternative? The answer lies in your lifestyle and needs. For instance, purchasing online could offer better benefits when you are constantly pressed for time. But when you need to make a high-value purchase, trying it out in-store would definitely be a prudent decision.
The fact is, both online and in-store shopping offers unique benefits to elevate your purchasing experience. But weigh the pros and cons before determining the best option for your needs.
