Question

What are the major differences between virtual storefronts, such as Bluefly, and bricks-and-clicks operations, such as Walmart? What are the advantages and disadvantages of each?

Answer 1

Difference

1. Themajor difference between virtual store front and brick and click operation is the physical transaction. Virtual store are online stores and thus doesn't offer the buyer to be present and physically examine the product and buy it . But in brick and click operation, they are both online and offline stores and thus offers the buyer to be physically present and buy and the product.

So we can say that virtual store doesn't offer a location like brick and clicks does.

2. There ia flexibility of payment in virtual stores as they offer different online payment options as well as banking and cash payments whereas brick and click mainly offers cash and card payment options.

3. Customer are paid more attention in brick and click outlet as there is someone to guide them present, which is absent in virtual stores and customers are more likely to leave the product if they are in doubt.

Advantages of virtual store:

1. People find it more convenient to shop online because they have the flexibility of time , as they can access the website whenever they are free and not only during working hours.

2. Virtual stores are comparatively cheaper to offput thana good brand image line stores as they only require a good website, packaging materials and good marketing.

3. Also they are cheaper to start a business as the operation can be conducted sitting at home too.

4. Virtual stores are also good for owner as the customers are not aware how many other customers have visited the store unlike in offline stores and thus are not influenced by it.

Disadvantages:

1. Virtual stores doesn't provide physical examination of the product which many times leas to loosing their customers.

2. They have huge competition and a slight reduction in their competitors price can lead to loss for the store.

3. New Virtual stores need a lot of PR strategy to get known in the market as people can never ve aware of them just walking by as they are in offline stores and so a lot of promotions.

Advantages of brick and click stores:

1. Customer are more likely to have more trust and confidence when buying from a offline store as they can examine the product. By having only online business the customer might not be as confident but by having both the customer will be able to select a product online and then can go to the store and physically check the product before buying. This helps in building trust among the customer.

2. The customers are personally attended in offline stores where their queries can be met and they are assisted in buying a product and thus are less likely to leave the store without buying.

3. Customer can exchange or return the product themselves which will lead to reduction in the shipping cost for the seller which they have to bear in online stores.

Disadvantages of brick and click:

1. Very costly: the owner has to rent an outlet to start a offline store and pay rent or buy the property which is not the cash in virtual store. Also they have to pay the employees and other maintenance cost to be taken which increases the cost of operations.

2. Also as they are both online and offline they would require staff to maintain the online customer base by always being updated with the Changing market, online trends and upgrading the website. This again increase the cost for them

3. They also have customer limitations as they are at a location at the starting point and can tend to local customers only and will need a lot of marketing to grow their customers base to national level.