| Q: Is the online world the best place to sell a product | | | | setting up online points of sale. One example is |
| or service these days? My friends seem to think that | | | | Sears.com, which saw online revenues skyrocket |
| brick and mortar stores will totally disappear in the | | | | 40% in the past year. Forrester Research says US |
| future. I debate this all the time with them, but it | | | | online sales will hit $145 billion in 2005, which translates |
| seems to be heading that way. Your thoughts? | | | | to 7% of US retail sales. That's a 26% rise in 2 |
| - Alex H.At last report, Alex, Sam Walton was still | | | | years.Wal-Mart will no doubt have a big effect on |
| resting comfortably in his discounted grave, so I'd say | | | | online sales as they bring their "lower prices |
| brick and mortar is safe, at least for the next few | | | | everyday" mentality to the Web. Just as they |
| years.During the dot-com boom the mantra was | | | | muscled suppliers for the lowest prices in their stores, |
| "Brick and mortar is dead!" Then when most of the | | | | so will they bring their weight to bear online. This is |
| dot-com's crashed like an elephant sitting on a wicker | | | | great news for consumers. As more retailers go |
| chair, the mantra suddenly changed back to "The | | | | online consumers will have more choices and find |
| Internet is dead! Long live brick and mortar!"In both | | | | lower prices.One thing that may ensure that some |
| instances those doing the shouting were dead wrong | | | | brick and mortars never go away is what I call "The |
| (and highly annoying). The correct mantra should be | | | | Try It On Factor." If you have to try it on or want |
| "Long live ecommerce enabled brick and mortar!" It's | | | | to see how you look in it, there will always be a |
| not as catchy, but a lot more accurate.So to formally | | | | need for brick and mortar stores. For example, I |
| answer your question, Alex: I have to agree with | | | | wear cowboy boots (I have a pointed foot) and I |
| you: brick and mortar is safe for many years to | | | | would never buy a pair of cowboy boots without |
| come. That's not to say that online selling will not | | | | trying them on first, so until some genius comes out |
| continue to grow and overshadow in store sales in | | | | with a way for me to hold my big foot up to the |
| the coming years. But smart retailers realize the | | | | computer monitor and get a perfect fit, I will only |
| potential - and limitations - of the internet and are | | | | buy my boots in the store.I do believe that someday |
| making plans accordingly.Smart retailers know that | | | | the majority of products will be purchased online. We |
| while the Internet has the potential of opening up | | | | are already seeing this trend in many industries. |
| new sales channels for them, they also know that | | | | DVDs, CDs, videotapes (which will definitely go the |
| not all customers will shop online, at least for another | | | | way of vinyl records in a couple of years), books, |
| generation or two. Until every man, woman, and child | | | | cellphones, televisions, computers, stereos, etc. are all |
| on the planet can operate a computer as easily as a | | | | big sellers online. It's also possible to buy a car from |
| cellphone, there will always be consumers who will | | | | the comfort of home and shop for a house. I know |
| not buy online.Smart retailers also understand that a | | | | because I've done them both several times.When |
| successful online strategy depends on the mindset of | | | | debating the death of brick and mortar you must |
| the buying public. They understand that the internet | | | | also consider the fact that shopping is a social |
| is not erasing business models: it is changing business | | | | experience for many consumers, i.e. females, who |
| models. Those that adapt will succeed, those that do | | | | happen to control the purse strings and make most |
| not, will one day close their doors.When burst onto | | | | of the buying decisions for their families.Case in point: |
| the scene with big plans to change the way people | | | | Every year my wife and her mother trek to |
| buy books, Barnes and Nobles did not close their | | | | Birmingham and Atlanta for annual shopping trips. |
| brick and mortar stores out of fright. They also did | | | | When I point out that there are perfectly good malls |
| not ignore the trend toward online shopping. Instead | | | | right here in our own backyard, I am told that I'm |
| they directed resources toward building their own | | | | missing the point. The point of these trips is not to |
| online sales arm to compete in the online | | | | buy anything. The point is to shop, to eat, to hang |
| marketplace.Many large retailers that were slow to | | | | out, to bond. If a purchase is made, oh well. Scientific |
| jump on the online shopping bandwagon are now | | | | studies on these phenomena have concluded that |
| getting serious about online sales. They are using the | | | | "It's a girl thing..."For men, shopping is a chore. For |
| Web to launch new product lines and sell things you | | | | women, shopping is an experience. So until my wife |
| normally would not find in their stores. Wal-Mart for | | | | and mother-in-law can get the same satisfaction |
| example, sells products online that would be too pricy | | | | sitting in front of a computer monitor as they do |
| for their retail stores, like $6,000 plasma TVs and | | | | exploring the malls, there will always be brick and |
| expensive sports memorabilia.Setting up an online | | | | mortar.Here's to your success!Tim KnoxSmall Business |
| shop is also cheaper than ever before. A web store | | | | Q&A is written by veteran entrepreneur and |
| that would have cost hundreds of thousands of | | | | syndicated columnist, Tim Knox. Tim serves as the |
| dollars just a few years ago can now be built for less | | | | president and CEO of three successful technology |
| than $10,000. Online retailers can also stock more | | | | companies and is the founder of |
| items than brick and mortar stores that only have so | | | | DropshipWholesale.net, an online organization |
| much shelf space.As more consumers have access to | | | | dedicated to the success of online and eBay |
| broadband you will continue to see a rise in online | | | | entrepreneurs. |
| shopping and a rise in the number of companies | | | | |