Retail stores are facing a lot of problems and shutting down their businesses. There are many reasons behind it such as high rents, taxes, market competition, and many other reasons. Over the past few years, most of the physical stores are either closing their operation or struggling to survive in the market.
One of the main reasons is the rise in e-commerce and online shopping. Due to the popularity of online shopping, consumers are not interested in shopping from any physical store. As a result, retail stores are not able to profit as much as they need to pay the rents and taxes. Now let us see how online shopping is having a negative impact on the physical stores.
1. Unavailability of Different Brands
Before online shopping, people were relying on the brands that physical store offers. In those days, people were only buying what the brands available in the store. But today consumers are searching for different brands in physical stores with the advent of online shopping.
As there are thousands of brands available in online stores, they go to the store with a specific brand and product which they find online. Further, consumers are now going to shop from the market after reviewing a product or brand online.
2. Online Reviews Have a Big Impact
A few years back, people were asking their friends and family members before they buy something from the market. They want recommendations and suggestions from the salesperson some times. But today, consumers look into different websites, blog reviews, customer reviews in different online shopping sites, etc. Most people are also watching YouTube videos for product recommendations before buying something. This has a big impact on physical stores.
3. Customer Engagement on Online Platforms
Social media has a great impact on retails stores. Because most of the big companies post their new products on their social media pages and groups. They post good quality content along with the product descriptions. This increases customer engagement in various online platforms. This also has a great impact on the purchase decision of a customer. When customers go for shopping at a retail store, they search for those brands which they have found in those content on social media.
4. Easy Payment Options
Online shopping offers various payment options such as paying through debit card, credit card, net banking, cash on delivery. This is a great advantage that people are getting from online shopping. Every e-commerce website offers such payment system which very easy and convenient for customers. Nowadays, some e-commerce websites are also accepting payment through digital currencies. Generally, they pay through bitcoin and if you want to know about bitcoin, visit bittrader
However, this problem has solved due to the acceptance of the digital payment system in retail stores. However, still there are some stores that have limited options for payments.
5. Smartphones Have a Bad Impact on Retail Stores
Another negative impact on retail stores is the usage of smartphones. Consumers are now using smartphone to compare different product and their prices on retail stores while they are purchasing.
Many people go to retail stores, then they look for different products, and then they compare the prices online. They purchase a product when they find the price is comparatively low in retail stores.
In fact, most of the retail stores are going through a hard time due to online shopping. However, they can also adopt digital platform and provide online services. This will help retail stores to attract more customers and retain them for a long time. If you have a physical store then make sure to use social media and create your own website to provide valuable content about your products. It is very important to have an online presence for every retails store to survive in the market.