Many physical retail stores are shifting to online marketing to make their products more accessible and leverage the e-commerce business boom.
But what benefits can physical retail stores bring for purely e-commerce businesses?
Establishing retail locations can be very beneficial for online stores. Keep reading as we provide tips and explore best practices for transitioning from e-commerce to physical retail.
What Strategic Advantages Does Branching Out Into Physical Retail Offer?
Physical retail can be a profitable new direction for an e-commerce business for the following reasons:
- Browsability: Many shoppers prefer to shop in person, giving them a better understanding of product quality and sizing. They can also discuss the product with staff to ensure it is the best choice for them. Scents, textures, and product sizes are difficult to gauge via online marketing channels.
- Returns policy: When customers shop online, there is a 30% chance of a return being made, whereas this figure is only 10% in person. Since returns take up valuable employee time, keeping return figures to a minimum is in your best interest as a business owner.
- Atmospheric advantages: Your physical retail store’s decor, layout, and displays provide more opportunities to establish unique branding. You are not restricted to logos, website design, or product packaging and can utilize scents, lighting, decor items, and unique displays to communicate your brand’s aesthetic.
- Instant gratification: When they shop at your store, customers can have the product right away. If they need your products urgently, they can visit your store and collect the item on the same day.
For all of the above reasons, it’s in your best interest to explore retail options and provide the service for consumers. But how do you make the transition a successful one?
Tips For Successful Transition Into Physical Retail
By following these tips and best practices, you can create a strategy for your physical retail locations geared toward success.
Selecting In-Store Locations Wisely
It’s crucial to select the correct location for your physical store. In-store locations in countries and regions where your customer base is thin will not lead to the best sales results. Before constructing your physical retail plan and selecting a store location, consider where your customers are based. This way, you are immediately more likely to have demand at your physical store locations.
Choose in-store locations that experience a lot of foot traffic. The more passers-by, the more potential sales. Though these properties may be more expensive to lease, this is accounted for in the increased potential for ROI.
Investing In Physical Security
Once you have selected a suitable in-store location, you must invest in a physical security strategy to prevent losses and shrinkage. Here are some essential physical security features to prioritize:
- Access control: You must keep pedestrians and intruders out of staff-only areas containing valuable stock. Access control keycards and fobs allow staff to enter easily while keeping unauthorized individuals out.
- Security cameras: Having visibility in your store helps to reduce the potential for theft and property damage. Consumers will be aware they are being watched and thus less likely to commit a crime. You will also have a record of theft in the store that will be useful in a security investigation or insurance claim.
- Alarm systems: You need barcode and security tag alarms to prevent theft. You also need alarm systems to alert staff to fires or carbon monoxide leaks on the property – as per compliance regulations.
Get in touch with a local security system installer to establish in-store security before planning your store layout and importing stock, as the stock will not be secure unless you have adequate building security.
Curating Store Displays
Store displays enhance the customer journey to boost sales while attracting window shoppers and drawing them into your store. The more unique, bold, and attractive your displays are, the more interest you will garner from shoppers.
Research store planning that uses psychological techniques to boost sales, such as placing smaller items at the checkout to upsell. And, make sure your store is simple to navigate and attractive to encourage browsing.
Marketing Your New Store
Once you have set up your retail location, you must let your existing customer base know about the opening. Use SMS, email, and social media marketing to advertise the new store location and ensure your customers are aware they can now shop with you in person.
Click-And-Collect
A click-and-collect strategy is the best way to fuse your in-store and e-commerce sales for your business. This allows consumers to access the products they want on the same day. When they visit your store, this is the perfect opportunity to upsell and increase the buyer’s appetite for your brand!
Summary
Are you considering opening a retail store to create an omnichannel e-commerce experience for your business? The advantages are worthy of consideration, and by following the best practices listed above, you can enhance the potential for success. Consider if retail environments will give consumers a better understanding of your products’ look, feel, and quality to increase trust in your brand.
