Blog 4: Online Store

If I were to actually make a business plan, the first step in determining whether it should be an internet store or an actual physical store, would be to make a pros and cons list. The pros that were given in the prompt are very relevant to the decision. These are...

1. Online sales are growing significantly each year as transferring money online becomes easier and more secure.
2. Online stores cost less to operate and can be managed out of the home.
3. Online stores have far greater reach because they can be viewed on a global scale.

These are all great things, but there are also cons to consider. These might be...

1. Customers might not trust the online store as much as a regular store.
2. Customer service is not face to face- no human interaction.
3. Less incentive to make the company succeed.

If I were to open a store, I think that the decision would have to be completely situational.  If I were in a situation where I had a great business plan and the correct amount of funds, I think I would make it a physical store. If the business plan I had was for a newer cutting edge service or good, I would make it online.

I believe that the internet has improved commerce, because it has given people a low cost alternative to present the public with their goods or service. This has also lead to an influx of terrible goods and services, but as the economics always does, it weeds out the losers.

I do not think that traditional stores will be a thing of the past, because there are things that we need that cannot be shipped. Sure there are places like restaurants and grocery stores that allow the customer to shop perishable goods for quick service, but they will always be around. I still believe that stores have a factor that will always keep it's reliability above online stores and that is the one on one interaction. Having someone there to give you help when you need advice is a service that can never be replaced by a screen.