Twenty years ago, nobody would have thought that major retailers would be facing a decline in sales. Retailers like Macy’s, Dillard’s, and Sears which used to be household names have severely reduced their number of retail stores in recent years. In addition, malls across America have faced decline in sales. While these stores have faced a decline wholesalers and the online market have boomed. Why are people moving away from retail stores to the online marketplace?
Convenience
The ease of online shopping has contributed greatly to its success. When in a matter of 4 clicks consumers can buy an item and have it delivered to their house for the same amount as going to a physical storefront, it is easy to see the advantages of online shopping. With online shopping, buyers are able to shop at any moment, even during their lunch break, where before the internet they would be unable to buy anything due to the restrictions of location. Online clothing wholesalers make the process even more seamless by giving a wide variety of selection of clothes including wholesale jeans, shirts, pants, dresses, sunglasses, and many more pieces of apparel all in one place. The consolidation of all of these articles of clothing allows the consumer to more efficiently find what they are looking for.
Wider scope
Early on retailers only faced competition between retailers within the same physical area as them. With the introduction of the internet and online shopping, retailers now face competition from stores that could be thousands of miles away. With this also comes the ability for retailers to reach more people which results in more sales. For example, if a retail store opened in a town with a population of 1,00o people they would only be able to sell to those in the town. With the internet, if that business transitioned to online, they could reach millions of people which increases their chance of making more sales.
Easier to track purchases for business
Many retail stores use to utilize a membership card or loyalty card to track what members bought what items to then send targeted advertisements. While this method of tracking is useful to determine what one person buys, it fails to allow businesses to track the items people look at and don’t buy. The online platform allows to track this missed opportunity by providing the online business with useful consumer analytics to provide more items to the buyer that they may be interested in.
Safer
The coronavirus pandemic has shown that even in times of uncertainty online businesses are more able to stand on their own when compared to physical retail stores. With an increase of cases of COVID-19, many governments have issued a stay at home orders where non-essential businesses are asked to close their storefronts to decrease places of public gathering to ensure proper social distancing recommendations issued by the World Health Organization (WHO) and the Center of Disease Control (CDC). Meanwhile, online operations are able to stay open and do business. With retail stores no longer being an option for consumers online sellers are now reaping even more of the benefit of doing business online.
So, why are people making the switch from retail? With all the points mentioned above, it mainly comes down to the conveniences it gives to buyers and sellers. Buyers don’t have to travel to go shopping and are able to shop from the comforts of their own home while retailers are able to reach a larger population and target their products directly to the consumer. While retail still has its place with certain products the transition to online seems to still be an upward trend.
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