The rise of the online store
Online shopping is now so popular so is there really any need to open a physical store?
An online store is much cheaper than a physical store, there are no rent or upkeep costs as with an online store your costs are directly related to your website and shipping costs.
Online stores allow for you to sell a lot more products than you would in a physical store as you're unconstrained by space. ASOS, for example, stock over 60,000 products at any one time, this wouldnât be suitable for a physical store but works perfectly well as an online space. You also have the opportunity to start small and build up your brand and products over time instead of jumping in at the deep end.
As an online store, you have a very wide consumer base, anyone can access your store wherever they may be in the world at any time of the day, no matter their time zone.
However, when you have an online store it isnât all plain sailing. Your website has to be attractive to your customers if your website is not easy to use or constantly crashes itâs going to put them off and this will be reflected in sales. It is a well-agreed opinion that the Zara website is awkward and hard to use and in fact, puts me off buying from them online and instead waiting till Iâm walking past one of their physical stores.
You also have to deal with photographing the products, the shipping and the returns. This is the reason Primark doesnât sell online. Primark has a high turnover based on a fairly low average profit margin, and therefore it wouldnât make any financial sense to sell online as when one-third of clothes bought online get returned.
Online stores are much better suited for the low to mid-priced brands such as PrettyLittleThing and In The Style than designer brands such as Gucci. This is because, as a study completed by the California Institute of Technology shows that consumers pay significantly more for products they can view in person. For high-value items such as designer clothing and expensive jewellery, a physical store is a more suitable fit. You also get the personal touch that these high-end physical stores offer to build customer loyalty which isnât achieved as easily online.










