This is a question many businesses ask themselves before opting for an online or shop front business. With the popularity of e-commerce, many businesses now wonder if it is even worth opening a shop front anymore.

However, this entirely depends on the kind of business you want to conduct and what experiences you want your customers to have. If you are a small business it also depends on the budget you have.

This is why here are some pros and cons for you to consider before opening a shop front.

Pros of a shop front

Many consumers still prefer shop fronts

Yes, online shopping is more convenient but in 2018 it was estimated that in the retail sector only 14% of purchasing was done online. Meanwhile, most people bought from shop fronts. This shows that many people still like going to stores and choosing products themselves.

Gives your brand exposure

If your location is good then chances are that many people will pass by your store daily making it known to many people. An attractive design and a busy location is the perfect way to make your business known to hundreds of people daily. The attractiveness of your store may also lure customers in which means an increase in sales for you!

Direct relationship with customers

It will allow you to reach your customers more easily as any issue can be resolved there and then. You can provide amazing customer service which means that if you have a website as well, a consumer will be more likely to order online from you as well next time if they had a great experience in your store.

Cons of a shop front

Additional costs

This is why many small businesses don’t start with a physical store. It has costs such as rent, insurance, staff wages, and many other hidden costs that not every business can afford to pay at first. It also means low profits in the first year and may take a while for your business to breakeven. This is why many people opt for an online store these days.

Riskier 

It is riskier in a way that you will have to physically keep many things in your store and chances are not all of them may sell. This means that you might not be doing as much business as you’d like to but you will still be incurring the cost.

It is not for everyone 

Not everyone intends to open a shop front and that is completely fine as well. Many people don’t want to have such a big responsibility while first starting out and so an online store always seems like a better option.

Final words

Many other things will help you assess if you need a shop front or not. This is a question only you can answer for your business. However, these pros and cons will help guide your decision and make you understand better the risks and benefits that come with it.

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