The internet has reformed the way business used to be done. Though the brick-and-mortar stores are doing really well in many parts of the economy but the online selling has come up as the ever-growing slice of the overall pie of retail.
These days you can see mushrooming of startups in every sector of the industry. Now a student who has a knack of designing trendy t-shirts can easily start their own estore. Starting something is pretty easy but implementing it in the correct way is where the real challenge lies.
But why people are moving away from the traditional way of selling? What are the major differences between the online stores and the traditional brick-and-mortar ones? Let us explore.
Author Bio
Akshay Sharma is a writer for Super 99 store, one of India’s leading retail stores that offers a wide range of products.
These days you can see mushrooming of startups in every sector of the industry. Now a student who has a knack of designing trendy t-shirts can easily start their own estore. Starting something is pretty easy but implementing it in the correct way is where the real challenge lies.
But why people are moving away from the traditional way of selling? What are the major differences between the online stores and the traditional brick-and-mortar ones? Let us explore.
- Initial Investment – At the time of opening a new store, the initial investment involves the rent of the place and the advance for the store. In the initial days of the start-up, such a huge store is not required but one has to ensure that it is located in a prime location to make sure that it sells.
No matter what the target audience of the shop is, in order to rent a place in a prime location one has to invest anywhere in between Rs.20,000-Rs. 35,000. Let’s assume it be around Rs.25,000. Showcases and racks are required that cost between minimum Rs. 50,000 and maximum Rs.1,00,000. Let’s assume that it is around Rs. 75,000. Apart from that, there must be advance of Rs. 1,50,000.
On the contrary, when someone wants to start a business venture online, his initial investment will involve setting up the website. In today’s world, no one opts for creating an ecommerce platform from scratch. But though it may sound simple one will appoint professionals for creating the website. This costs around Rs.30,000 that includes domain name and server space.
- Logistics – The logistics involved in starting a physical store is almost negligible. You just have to put the stuff in a car, a friend’s car or an auto. This can be done fortnightly or weekly or everday on the basis of how often you go to the store.
On the other hand, the logistics involved online would vary between Rs. 120-150 per delivery in case it is outsourced. So let’s say that you are performing in a decent way with approximately 75 orders every months. This would roughly cost around R. 9000.
Again if the customer wants to return the product or the product is damaged en route or if you send the wrong product, then the costs of logistics double.
- Branding - Branding and designing are very crucial part of any venture. This will cost more or less the same amount in case of both the traditional shops and the ecommerce businesses. But the packaging for online selling would entail more protection in order to prevent breaking of the product.
- Marketing – The marketing that one needs to do is minimal just by having a store at a prime place. One can take help of the basic guerrilla techniques of handing out pamphlets. Moreover, if your store is located at the right place then there would be daily walk-ins anyway.
On the contrary, there are hundreds of stores that have opted for selling goods online. That is why, one has to resort to a number of ways to scream to check your website that sells stuff. The first step, in this case, is to set up a Facebook page and ask your friends to like and share the same. You will have to ensure that your site is made SEO compatible. Digital marketing should also be started that is not limited to Google Adwords, Facebook ads. You will have to outsource this. It would cost you around 25,000 a month. This is not a one-time fee but a continuous process that every website must undergo.
- Manpower- If it is considered that you are just starting out then you are going to try out everything or at least you need to try. So the cost of manpower that you need for selling in a brick-and-mortar shop Vs Selling online is more or less the same.
Author Bio
Akshay Sharma is a writer for Super 99 store, one of India’s leading retail stores that offers a wide range of products.
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