Physical or virtual store: Which is better?

Check out the pros and cons of opening physical or virtual stores in this article and find the best model to start your business.

Understandably, a new entrepreneur could have doubts about which channels to use to advertise their products: physical or virtual stores. Naturally, both types of channels have advantages and disadvantages.

In this article, learn about the differences between the two models so you can choose which one best suits your business or, perhaps, invest in both. Check it out!

Learn more about physical stores

Physical stores are the most traditional sales outlets and were probably the first option on your mind. Before making a decision, know the pros and cons of this type of establishment:

Advantages of the physical stores

The tradition of going to a physical store has a certain charm, don't you think? After all, inside a store, you can smell the products, try on clothes and shoes, or get your mouth watering when you see a cake on display. In other words, the sensory experience is more authentic!

In addition to the face-to-face relationship between consumers and products, it is impossible not to highlight the enormous advantage of humanized service in direct, personalized contact with salespeople. This can certainly increase sales!

That is why physical stores continue to be valued and attract audiences of all ages, as well as bringing local credibility to your brand and making it possible to hold major promotions and launches.

Disadvantages of the face-to-face model

With the unique experiences of physical stores, come big expenses for the entrepreneur, such as rent, space maintenance, paying employees, and electricity and water bills. So, before you open your store, make sure your financial resources fit in with the costs of running a business.

In addition, geographical limitations are possibly the biggest disadvantage of physical stores, especially if your brand does not sell online on platforms such as Facebook or has its own website. This limits its audience reach, which automatically reduces its profit potential.

Virtual Store: convenience and global reach

The virtual store, also known as e-commerce, has grown a lot with the COVID-19 pandemic, a period when the use of technology had increased. Therefore, having an online store has many advantages, but also some disadvantages - check them out:

Advantages of virtual stores

The freedom to access an e-commerce site or app and make purchases from anywhere in the world and at any time is one of the greatest assets of virtual stores. This convenience allows your business to reach a much larger audience than in a physical location, as well as ensuring that the store is always "open" and ready to serve customers.

Another significant advantage is the reduction in costs. Without the need for a physical space, expenses such as rent, maintenance, and hiring employees are reduced. In addition, expanding the product catalog or adding new features to the site is generally simpler and cheaper than in a physical store.

Disadvantages of virtual shops

Despite the advantages, the virtual shop also presents some challenges, such as the competition in the online market, which is extremely fierce and can make it difficult to differentiate your brand.

It is also important to mention the dependence on logistics services. After all, your company needs to have adequate logistics so that your products reach the consumer safely. However, the quality and cost of deliveries can vary, directly impacting the customer's shopping experience.

Finally, what is the best option?

After analyzing all the pros and cons, you should choose the store model according to your business’ characteristics and the public you want to reach. Today, many companies combine virtual and physical stores to create an omnichannel sales strategy to get the best of both worlds.

So if your product requires a sensory experience or if you want to create a humanized relationship with the customer, a physical store can work. However, if you are looking to reduce initial costs and reach a wide and diverse audience, e-commerce is certainly the best option!

Discover the Cetro stores!

Whatever you choose, you need to plan carefully, understand your customers' needs, and be prepared to adapt to changes in the market.

With this in mind, Cetro seeks to provide a complete shopping experience for different audiences with showrooms in the cities of Bauru, São Paulo, Rio de Janeiro, and Belo Horizonte in Brazil, Orlando – FL, and China.

In addition, the company stands out for its integrated Marketplace, where customers can easily find innovative solutions for their business in just one click and with personalized service. Click here and check it out!

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