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Is it worth it for businesses to make the switch to online retailers? -…
Is it worth it for businesses to make the switch to online retailers?
Customer trends showing the lean towards online purchases
Covic-19 - need to remove face to face interaction
Easy to shop from home
convenient for the customer
direct to customer
less need for brick and mortar store fronts
younger generations utilizing online resources more
Less brick and mortar stores
Initial infrastructure costs for starting online store
lower costs
Less rent and utilities
less wages when system is automated(sales reps)
Stock and shipping issues
Stock availability (having a warehouse or distribution center)
increased production?
Shipping
Shipping time schedule (how long it will take to get to the customer) not generally an issue in brick and mortar stores
Shipping cost
does the company absorb the cost?
expensive
figure out a way to package the product for less cost on shipping
create infrastructure to make deliveries themselves (amazon)
expensive
employ's more people
more wages
Purchase trucks
Do they give the cost to the customer?
imbed it into the cost of the product
creates a higher price point which might make customers second guess purchase
charge a separate shipping cost
creates another cost that might make customers second guess purchase if cost is high
Returns
having a return policy in place
customers have to ship product back
expense to customer (might make them think twice about initial purchase)
expense to business
more likely to make initial purchase
absorbing cost must be included in initial sale price of product
online advertising increase
Harder to find unless a larger retailer
search optimization- to keep relevant and easily accessible
increased need for advertising
increased costs to advertising on popular social media sites
Hiring a social media ambassador /influencers
having social media pages for the business that require active posts to create sales
constant need to create new content to help sell
Current economic situation due to Covid-19
decrease in customers due to face to face interactions
unable to keep businesses running (bankruptcy)
less foot traffic because more people are staying home
increased costs for material or stock
customer frustration which can lead to decreased sales
increased production time due to factory shortages
Customer frustration for not having stock in brick and mortar location when they could have just ordered at home