Question

A channel of distribution is the part of the supply chain that focuses on getting the product to the ultimate consumers. Over the past 10 years, retailers have seen a shift from brick and mortar to online buying of goods by consumers. As a result, more than 7000 retailers have closed up physical shop this year. Please are some advantages and disadvantage of online versus on ground shopping. If you are hired to slow and increase the number of on ground stores, what would be your strategy from a marketing and distribution strategy?

Answer 1

online shopping

Online stores do not have space constraints and a wide variety of products can be displayed on websites. It helps the analytical buyers to purchase a product after a good search.

The convenience of online shopping

Customers can purchase items from the comfort of their own homes or workplace. Shopping is made easier and convenient for the customer through the internet. It is also easy to cancel the transactions.

Why shop Online

• Saves time and efforts.
• The convenience of shopping at home.
• Wide variety/range of products are available.
• Good discounts / lower prices.
• Get detailed information about the product.
• We can compare various models/brands.

No pressure shopping

• Generally, in physical stores, the sales representatives try to influence the buyers to buy the product. While in online shopping, you're free to do as you will.

Online shopping saves time

• Customers do not have to stand in queues in cash counters to pay for the products that have been purchased by them. They can shop from their home or workplace and do not have to spend time travelling.

Comparisons

• There is a wide range of products online. The sellers display all the stuff they've got. This enables the buyers to choose from a variety of models after comparing the finish, features, and price of the products on display.

Availability

• The mall is open on 365 x 24 x 7. So, time does not act as a barrier, wherever the vendor and buyers are.

Online tracking

• Online consumers can track the order status and delivery status tracking of shipping is also available.

Online shopping saves money

• To attract customers to shop online, e-retailers and marketers offer discounts to the customers as they have cut down on real estate and maintenance cost the sellers won't back out in giving huge discounts.

Disadvantages of online shopping

Ease of use is the prime reason that drives the success of e-commerce. Though the internet provides a quick and easy way to purchase a product, some people prefer to use this technology only in a limited way. Some people also fear that they might get addicted to online shopping. The major disadvantages of online shopping are as follows.

Delay in delivery

• Long duration and lack of proper inventory management result in delays in shipment. Though the duration of selecting, buying and paying for an online product may not take more than 15 minutes; the delivery of the product to customer’ s doorstep takes about 1-3 weeks.

Lack of significant discounts in online shops

• Physical stores claim to give significant discounts when compared to online stores, this is a huge disadvantage for the older generation.

Missing the shopping experience

• The traditional shopping exercise provides a lot of fun in the form of showroom atmosphere e, smart sales attendants, scent and sounds that cannot be experienced through a website. Indians generally enjoy shopping. Consumers look forward to it as an opportunity to go out and shop.

Frauds in online shopping

• Sometimes, there is a disappearance of the shopping site itself. In addition to the above, the online payments are not much secured. The rate of cyber crimes has been increasing and customers’ credit card details and bank details have been misused which raise privacy issues.

Offline shopping

Offline shopping as the name suggests refers to that shopping which is not done online by the consumer rather the consumer himself or herself visits the shop and purchase the goods from the shop. While comparisons will always be made between online shopping and offline shopping and supporters will try to prove that one medium of shopping is better than the other medium and that is the reason why one should look at advantages and disadvantages of offline shopping –

Advantages of Offline Shopping

Checking of Goods Instantly

The biggest benefit of offline shopping is that one can check the goods personally and there is no scope of one getting disappointed with quality of product as one has checked the product physically which is not the case with online shopping where one cannot check the quality of the product which sometimes can lead to one gets completely different product from the ordered product especially when one is ordering products like clothes, shoes and other such items.

Instant Use and No Waiting Period

Another benefit of offline shopping is that one can use the products instantly unlike online shopping where you have to wait for 1 or 2 days in order to get the product in your hand for use. In simple words, in case of emergencies, offline shopping is the only solution, so for example if you are invited for a birthday party and do not have party wear clothes than you have no option but to go for physical shopping for purchasing of party wear clothes.

Personal Touch

When you go to the same shop for purchasing then you maintain good relations with the shop owner and he or she will understand your preference, shopping habits and needs thereby giving products accordingly which is not possible in case of online shopping. In simple words lack of personal touch and understanding about consumer wants and preferences is a big negative as far as online shopping is concerned.

Disadvantages of Offline Shopping

Less Choice

The biggest drawback of offline shopping is the lack of choices because physical shops have limitations when it comes to a variety of choices of products they can provide to its customers which is not the case with offline shopping where choices for products are almost unlimited. Hence, for example, suppose you want to buy trouser for yourself than in case of physical shopping you will get 10 or 20 options but in case of online shopping you will get thousands of options and you will get tired scrolling down the options but options will not end. In simple words when t comes to giving choices for products online shopping has an edge over offline shopping.

More Expensive or Lack of Discounts

Online shopping websites keep running discounts schemes and cash backs and a majority of times the price of products on online shopping websites is low as compared to the price of products displayed on shops. Hence if you are one of those consumers who want to take discounts and cash back then online shopping is better as compared to physical shopping

Time Consuming

In case of offline shopping, you have to go shopping for purchasing of products which can be time-consuming whereas in case of online shopping you can order products with a click of a mouse. In simple words, if you want to save time and get products at your doorstep conveniently than offline shopping is not for you and should stick to online shopping.

As one can see from the above that offline shopping has advantages as well as disadvantages and that is the reason why one cannot completely ignore either online or offline shopping as both have their own merits and demerits and people will continue to use both of them rather than using any one of them exclusively.