Brick and mortar vs. e-commerce store: What is right for your business
re you launching a new B2C venture and struggling to choose the right business model? Should you invest in a brick-and-mortar store, establish an e-commerce store, or adopt an omnichannel approach that blends both? Brick-and-mortar businesses have long been the foundation of retail, offering customers a direct, quicker, in-person shopping experience. From boutique fashion stores to specialty grocery shops, physical retail has thrived on personal interactions and immediate product access. However, with the rise of digital commerce, the retail landscape has shifted dramatically. Online stores—from online clothing stores to online furniture stores—offer unparalleled convenience, wider reach, and the ability to operate with lower overhead costs. But which model truly drives more sales, and more importantly, what is the best fit for your business?
In this guide, Qalara breaks down the benefits and challenges of both brick-and-mortar stores and e-commerce stores to help you make an informed decision. Whether you are considering a retail shopping store, an e-commerce online store, or a hybrid approach, understanding the pros and cons of each can shape your strategy for success.
As a leading B2B wholesale platform, Qalara enables businesses to source high-quality lifestyle and décor products effortlessly, supporting both traditional retailers and digital-first brands. Read on to discover which retail model aligns best with your goals.
Table of contents:
Brick-and-mortar stores: The traditional touchpoint
Benefits for retail businesses
Integration with wholesale supply chains
Success stories of the brick-and-mortar model
E-commerce stores: The digital frontier
Cost efficiency and scalability
Leveraging wholesale B2B e-commerce platforms
Brick-and-mortar stores
The traditional touchpoint
The traditional mode of conducting business relies heavily on personal interactions and hands-on product exploration that is very tactile and physical in nature. This is an experience that digital platforms simply cannot replicate. Customers visiting brick-and-mortar businesses enjoy the ability to browse in person, compare options, try out products, and make informed purchase decisions on the spot. This shopping model is deeply ingrained in consumer behavior and remains an essential part of the retail landscape.
Despite the rapid rise of e-commerce stores, brick-and-mortar stores continue to hold their ground. Grocery stores, specialty boutiques, and luxury retailers benefit from face-to-face interactions and the ability to provide immediate fulfilment. Convenience stores, in particular, cater to impulse buying. Additionally, businesses that rely on tactile engagement, such as furniture showrooms and luxury boutiques, thrive in a brick-and-mortar business setting.
Customer experience
One of the biggest advantages of a brick-and-mortar store is the ability to provide personal interactions, tactile product exploration, and instant gratification. Unlike online shopping, where customers rely on product descriptions and images, visiting a retail store allows shoppers to see, feel, and try items before making a purchase. The visceral experience of walking out with a product in hand, without waiting for shipping, remains a key reason why customers still prefer brick-and-mortar businesses over digital alternatives.
A recent study conducted in March 2024 among US online shoppers found that 37% of respondents preferred shopping in brick-and-mortar stores to avoid shipping costs. Additionally, about 30% said they would visit a retail store only when exclusive discounts and promotions were available. While e-commerce stores continue to improve user experience through AI-driven tools, nothing can fully replace the sensory engagement of in-store shopping. Customers want to touch, test, and compare products in real-time—something that even the most advanced digital e-commerce online store interfaces struggle to replicate.
Also read: The art of effectively using AI in retail
Operational challenges
With a physical store comes the responsibility of managing it. In a brick-and-mortar set-up, there are multiple costs to consider, from daily operations to long-term expenses. Once a commercial store is established, overhead costs quickly follow—rent, utilities, payroll, inventory, staff management, and more. And that is not all. The initial investment in store design, fixtures, interiors, and signage adds to the financial burden.
According to a study conducted by a zero-waste grocery store, retail space rental alone can account for 10-15% of a store’s revenue, while the labor-intensive nature of a brick-and-mortar business can drive staffing costs up to 30%. These are huge numbers, regardless of how profitable the business is. The reality is that operational costs take a major cut from revenue, making it essential for retail store owners to evaluate whether a physical storefront is financially viable for their business.
Benefits for retail businesses
One of the biggest advantages of having a brick-and-mortar store is the trust it builds with customers. A physical presence reassures shoppers about product quality, return policies, and overall brand credibility. This is especially crucial for businesses selling high-involvement products like furniture, electronics, or luxury goods, where customers prefer to see and test items before making a purchase.
Additionally, a well-located brick-and-mortar business can create a strong local presence, attracting repeat customers and fostering community loyalty. Smart merchandising strategies, such as eye-catching displays and seasonal promotions, can further drive foot traffic and impulse purchases. When paired with a skilled sales team, the in-store experience becomes even more effective at converting walk-in customers into loyal buyers. For businesses like boutiques, specialty stores, and convenience stores, this ability to offer personalized service and immediate purchases can be a game-changer.
Integration with wholesale supply chains
For any brick-and-mortar business, staying stocked with the right products at the right time is key. That is where wholesale distribution channels come in. Whether you are running a retail store or a specialty boutique, working closely with manufacturers, distributors, and wholesalers ensures smooth inventory flow. A well-structured supply chain helps you replenish stock efficiently and even expand your product range as demand shifts.
To avoid last-minute inventory shortages, it is essential to integrate daily operations with your supply chain. Whether you are managing a clothing boutique, home decor shop, or convenience store, ensuring timely restocking prevents missed sales and frustrated customers. A strong wholesale supply chain management strategy helps you maintain a steady flow of products, keeping your business running seamlessly while minimizing lead times.
Success stories of the brick-and-mortar model
While luxury brands are embracing digital innovation, they are not abandoning their brick-and-mortar stores anytime soon. Why is that? What makes their retail store presence so essential despite the rise of e-commerce? Luxury retailers understand that an in-store experience offers something irreplaceable—a chance for customers to immerse themselves in their brand, feel the craftsmanship, and enjoy personalized service.
The same principle applies to novelty brands like Uniqlo, Muji, and Everlane—their success is deeply tied to physical retail stores. Their secret? Captivating walk-in customers with innovative designs and encouraging impulse purchases. With well-curated store layouts, novelty products, and engaging in-person shopping experiences, they have successfully maintained a strong brick-and-mortar business. If your brand thrives on in-person customer engagement, a physical store could be the right move.
Luxury retail, in particular, thrives on sensory experiences—browsing, touching, and testing high-end products is what sets luxury brick-and-mortar stores apart. A well-curated experience with top-tier assistance is something that digital counterparts still struggle to replicate, though advancements in AI and virtual shopping tools are gradually bridging the gap. Think of brands like Burberry, LVMH, and Hermès—despite their digital efforts, they continue to invest significantly in their retail shopping stores. In fact, only a fifth of luxury brands have integrated their official page with Facebook Shop, proving that while an omnichannel approach is growing, brick-and-mortar is here to stay—especially in the world of high-end retail!
Personal data safety
There is no doubt that e-commerce stores are great for gathering customer data to refine marketing strategies. While this is beneficial for retailers, the experience isn’t always as reassuring for customers. Many online shoppers are wary of sharing personal details like addresses, contact numbers, and banking information, especially at checkout. If they feel their data isn’t secure, they might abandon their purchase altogether.
On the other hand, brick-and-mortar stores offer a layer of privacy that digital transactions often lack. Shoppers can simply walk in, make their purchase, and leave—without handing over sensitive information beyond their payment method. This quick and straightforward exchange makes brick-and-mortar businesses particularly appealing for those who prioritize data security. Whether you run a specialty boutique, a retail store, or a local convenience shop, providing customers with a secure shopping environment can be a strong advantage in today’s privacy-conscious market.
So, is a brick-and-mortar store the right fit for your business? If customer experience, immediate product access, and personalized service are priorities, then investing in a brick-and-mortar business can be highly rewarding. For businesses seeking a hybrid approach, combining brick-and-mortar retail with an e-commerce store can maximize reach while maintaining the advantages of in-person sales.
E-Commerce stores
The digital frontier
As of 2024, the United States has a staggering 273.49 million online shoppers, proving that the e-commerce industry is booming with no signs of slowing down. From fashion and home décor to lifestyle products, kitchen essentials, sports gear, and even luxury items—everything is just a click away. Given this rapid digital expansion, does it make sense to switch entirely to an e-commerce store? Some businesses thrive online, while others benefit from a physical presence. Let us break it down and explore which industries are making the most of the e-commerce surge and whether it is the right move for your business.
Cost efficiency and scalability
E-commerce stores offer undeniable advantages when it comes to cost efficiency and scalability. With lower operational expenses, automation, and streamlined omnichannel logistics, businesses can save significantly—especially without the need for a physical space or large staff. However, this model isn’t a one-size-fits-all solution. If you are running a boutique or planning to open a patisserie, starting with a brick-and-mortar store allows you to build a loyal clientele before expanding online. Once established, an e-commerce store can serve as an additional revenue stream, helping you reinvest in your physical store and enhance efficiency.
On the other hand, if your business revolves around contemporary fashion, launching an online store should be a no-brainer. Platforms like Shopify or other retail POS systems make setting up an e-commerce store seamless. With the right marketing strategy, you can scale rapidly and tap into a global customer base. However, keep in mind that while operational costs are lower, you will need to factor in shipping expenses.
Also read: How to measure and optimize your retail KPIs
Enhancing user experience
Enhancing user experience is key to boosting sales in an e-commerce store. Once you get the hang of the trade, you shall discover how to optimize your platform and drive conversions efficiently. One major advantage of e-commerce stores is their ability to encourage impulse buying. By strategically placing last-minute purchase prompts at checkout—such as a complementary or frequently bought-together item—you can easily increase your average order value.
For businesses in stationery, hospitality supplies, or even home essentials, this tactic can be particularly beneficial, as customers often stock up on these products in bulk. To further enhance user experience on your e-commerce store, focus on optimization strategies like personalized recommendations, seamless navigation, and faster checkout processes. Integrating AI-driven suggestions, loyalty programs, and easy payment methods can also elevate the shopping experience, ensuring customers keep coming back. Whether you are running a brick-and-mortar business looking to expand online or diving headfirst into an e-commerce store, refining the customer journey is what will set you apart in a competitive market.
Leveraging wholesale B2B e-commerce platforms
Leveraging wholesale B2B e-commerce platforms is a game-changer for businesses looking to streamline e-commerce inventory management and simplify sourcing. If handling stock feels like a hassle, then e-commerce—particularly through dropshipping—might be the right solution for you. With this model, even the burden of maintaining a warehouse is eliminated. In fact, the global dropshipping market is projected to hit $1,253.79 billion by 2030, according to Grand View Research. Already, 27% of online retailers use dropshipping as their primary order fulfillment method, proving just how lucrative it can be.
For businesses focused on artisanal, handmade, fair-trade, or sustainable products, dropshipping offers an efficient way to access unique goods without holding inventory. Through Qalara’s dropshipping services, online store owners can forward customer orders directly to suppliers, who will then ship the products. With low MOQs, a subscription-based model, and a catalog of 5,000+ products, Qalara makes it easy for businesses to scale while keeping costs low. Get in touch to explore how this model can work for you!
Also read: How Qalara has made life easier for buyers
That said, dropshipping isn’t for everyone. It is a fantastic option for startups, niche brands, and businesses looking to test new products without large upfront investments. However, if maintaining control over inventory, shipping times, and product quality is crucial for your brand, then a traditional brick and mortar store or a more hands-on e-commerce store might be the better fit. While dropshipping offers low overhead costs, flexibility, and scalability, retailers should also be mindful of lower profit margins, supplier errors, and increased competition. Evaluate your business needs and choose wisely!
Industries thriving online
Online shopping trends in the U.S. continue to evolve, with fashion and clothing leading the way. A large-scale survey conducted between October 2023 and September 2024 with over 10,000 participants found that 43% of U.S. consumers purchased clothing online—making it the top pick for digital shoppers. This highlights the growing dominance of online clothing stores in the retail industry.
Big retail names like Walmart, Shein, and Amazon are continuously expanding their online store presence, drawing in millions of shoppers daily. However, online furniture stores aren’t far behind. With its model rooms, in-store café, and competitive pricing, IKEA has long been a leader in the furniture space with its one-of-a-kind in-store experience. Today, brands like IKEA have mastered the balance between digital and physical retail, offering customers a seamless retail store vs e-commerce experience.
If you are in the furniture business, an e-commerce store could be a great move—provided you invest in an interactive platform with 3D room visualization, personalized recommendations, and in-store pick-up options. A strong brand image and engaging user experience will set you apart, ensuring your customers get the best of both worlds—convenience and confidence in their purchase.
Logistics and challenges
Logistics can make or break your business, especially in the e-commerce space. While you might save big on operational costs by skipping a brick-and-mortar store, expect to spend a chunk of that on shipping systems, shipping charges, and logistics management. A seamless wholesale logistics setup is key to fulfilling orders accurately and efficiently—because the last thing you want is frustrated customers due to delayed or mixed-up deliveries.
If you are running an online clothing store, this process is relatively straightforward. Packaging, returns, and deliveries are much more manageable compared to, say, an online furniture store, where bulky shipments and high return rates can complicate operations. On the other hand, businesses dealing with fragile, high-value, or perishable goods may find it easier to operate from a brick-and-mortar business, avoiding shipping complexities altogether.
Ultimately, choosing the right model depends on your business type, product category, and ability to manage logistics smoothly.
Retail store vs. e-commerce
Striking the right balance
Still torn between a brick-and-mortar store and an online store? That’s completely okay! Let us dive deeper into the differences between the two, and you might just discover which model suits your brand best. Or, you may realize you don’t have to choose at all! Many retail businesses successfully blend both physical retail and e-commerce, creating a strategy that maximizes reach and revenue. Let’s explore how you can do the same.
Your business model
If your business model resembles that of a convenience store, rest assured—you will always have demand! The immediacy and ease you offer keep customers coming back. The same goes for grocery stores or organic product stores, where physical retail holds a strong edge over e-commerce due to freshness, accessibility, and trust.
Before jumping into the online store space, take a step back and analyze your model. Identify key competitors, study their strategies, and see how they are thriving. If your business has growth potential in e-commerce, go for it! Start small, test the waters, and scale up once you see results. Consider hybrid models, where you maintain a brick-and-mortar store while leveraging an online platform to expand your customer base. This approach works well for specialty food stores, artisanal brands, and niche retailers who benefit from both local foot traffic and e-commerce sales.
Target audience
Understanding your target audience is key to choosing the right business model. If your customers are digitally savvy, always in tune with the latest trends, and comfortable navigating online stores, then investing in e-commerce makes perfect sense. Think about fast fashion brands, beauty products, or tech gadgets—their audience thrives in the digital space, making an online store the ideal choice.
On the other hand, if your target group leans toward an older demographic or prefers a more hands-on shopping experience, having a brick-and-mortar store is the smarter move. Traditional shoppers appreciate the ability to see, touch, and try before purchasing—whether it is for home essentials, artisanal goods, or specialty foods. A physical retail presence builds trust and offers personalized service, making it a great fit for businesses that cater to customers who value familiarity and direct interaction over digital convenience.
Omnichannel strategies
You don’t have to choose between brick and mortar or e-commerce—why not have both? An omnichannel strategy lets you blend the best of both worlds, offering a seamless shopping experience for your customers. They can browse online, purchase in-store, or vice versa, giving them the flexibility they crave.
For example, a fashion retailer can let customers try on clothes in-store but offer online exclusives to drive digital sales. A home décor business can allow shoppers to preview furniture online before visiting the store for a final decision. Even specialty food stores can offer click-and-collect services, making shopping more convenient.
By integrating both channels, you expand reach, increase engagement, and boost sales. But remember, to succeed, ensure a consistent experience across all touchpoints—whether it is pricing, promotions, or customer support. A cohesive omnichannel approach can give your business an undeniable edge!
Profitability and margins
Your profitability goals will play a huge role in deciding whether to go for e-commerce or a brick-and-mortar store. E-commerce can be a great way to cut down on overhead costs, saving on rent, utilities, and staffing. However, challenges like cart abandonment, high return rates, intense competition, and the cost of digital marketing can eat into your profit margins. If your business relies on repeat customers, building brand loyalty online can take time and effort.
A physical store, on the other hand, gives you direct customer interaction, allowing you to implement creative strategies like visual merchandising, get aboard sign spinners, and offer in-store promotions to drive foot traffic! Businesses that thrive on in-person experiences, such as boutiques, specialty gift shops, or artisanal bakeries, may find this model more profitable. Ultimately, weigh your cost structures, marketing expenses, and long-term scalability before making the call!
Conclusion
Finding the right fit for your business
Deciding between a brick-and-mortar store and an e-commerce platform is no small feat. Both come with their own set of advantages and challenges. While embracing the digital revolution is crucial, it is equally important to align your strategy with your business’s unique needs. Whether you are running a fashion boutique, a home décor store, or a sustainable lifestyle brand, understanding where your customers are and how they prefer to shop is key.
At Qalara, we make sourcing fashion, lifestyle, and décor products seamless for businesses like yours, whether you are operating online, offline, or both! With our extensive wholesale catalog and flexible sourcing solutions, we help retailers find the right products to stay competitive. Looking to source high-quality, ethically crafted products? Explore Qalara’s curated collections today and build a retail model that works best for you!
~ Written by Gauri
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