In-store shopping vs online shopping is a debate that has become increasingly popular in recent years. According to eCommerce statistics, online shopping has steadily increased over the last few years. This is primarily due to the prevalent use of smartphones and internet services.
Some people, however, prefer to visit retailers in person while purchasing. Sometimes, shoppers will even research online before making the final in-store purchase.
What does the future of in-store vs. online shopping look like for customers in light of all of these scenarios? What benefits do they have? This article covers everything.
In-Store Shopping Vs. Online Shopping
Here is a detailed analysis of customer preferences and behaviors in in-store shopping vs. online shopping,
Customers’ Online Shopping Preferences
Online shopping has given shoppers of all ages many reasons to turn to the web to find their favorite products. This is due to the variety of products available, its contactless nature, and the ease it provides.
There are various reasons why people are transitioning to online shopping. Customers can shop at their leisure with 24/7 availability, allowing them to purchase anytime.
Finally, online shopping enables those without transport or time to make purchases. It even motivates people to buy more than they normally do in the store.
Benefits of Online Shopping
The benefits of online buying are hard to dispute. After all, having access to extensive online research and reviews boosts buyer confidence. Few would argue against the convenience of 24-hour shopping from the comfort of one’s living room sofa. Highlighted below are the benefits of online shopping:
Online Grocery Shopping
Everyone needs to buy food, but the COVID-19 pandemic has expedited the transition to online grocery shopping. The perks are obvious, especially for those who may find it difficult to find an hour or more per week to browse the grocery store shelves. You will not only fill your cart from the comfort of your own home, but you can also speed things up by saving common items in your app.
No Sales Pressure
While sales professionals can give useful knowledge and expertise, they can also make some in-person shopping experiences stressful for customers. It’s no wonder that some people prefer to avoid the pressure entirely by buying online, where they can take their time and not feel pressured into a sale by someone working on commission.
Research and Customer Review
The internet is an excellent resource for researching and comparing products before purchasing. Blogs and other web publications from reputable, unbiased sources can help you save time and money by testing products, outlining the benefits and drawbacks of various brands, and comparing prices. Customer reviews are another excellent resource for choosing a reliable product that meets your requirements.
Convenience
When comparing online shopping to in-store shopping, the convenience of online shopping easily wins. Owing to online shopping platforms, a shopping list that used to take a whole day to complete can now be completed in a matter of hours. You may also go shopping whenever you have time, whether during a 20-minute break at work or after the kids go to bed.
The Future of Online Shopping
Over the last ten years, consumer behavior has dramatically shifted from traditional in-person shopping to online platforms, significantly accelerated by the COVID-19 pandemic. Current data forecasts that 20.1% of all retail purchases will be made online by 2024, with the global e-commerce market projected to reach $6.3 trillion that same year.
However, the surge in e-commerce payment processing volumes tells only part of the story. Equally compelling is the evolution of what drives consumer loyalty and spending toward certain brands.
The primary factors influencing consumer choices in physical stores have traditionally been price, availability, and location. Online, these factors are less decisive. Instead, consumers are gravitating towards brands that offer a seamless, comprehensive shopping experience tailored to their specific needs and preferences, minimizing any hassle.
This means success in the competitive online market hinges on brands’ ability to let consumers shop on their terms: anytime, anywhere, and in any way they choose. In practice, here’s what this looks like the most forward-thinking brands are concentrating on several key areas to provide a superior digital shopping experience:
- Checkout optimization
Checkout optimization involves a set of tactics that brands employ to refine the eCommerce checkout process, making it smoother and easier to use. This facilitates higher conversion rates and encourages customers to make repeat purchases. However, the scope of checkout optimization extends beyond the checkout experience itself.
- Diverse Payment Options:
Depending on your goals, you might consider implementing ‘one-click’ payment options to simplify the purchasing process for repeat customers. Alternatively, you could provide a variety of payment methods specifically tailored to different markets or customer demographics. For instance, if your target audience is primarily millennials, offering buy-now-pay-later (BNPL) options such as Affirm and Apple Pay Later could be beneficial.
Meanwhile, if your sales strategy focuses on social media or mobile platforms, incorporating payment solutions like Apple Pay and Google Pay would likely enhance the customer experience.
- Conversational Commerce
Conversational commerce refers to using chatbots, voice assistants, messaging apps, and other communication tools to facilitate interactions and transactions between businesses and customers. This approach allows customers to engage with businesses in real-time and naturally, enhancing the shopping experience with interactive and personalized communication.
As customers increasingly value high-quality products and engaging and immersive experiences, conversational commerce is gaining popularity. Through conversational marketing, customers can seamlessly make purchases or inquire about services using a chatbot or speaking with a live agent.
- Live Shopping
Live shopping represents an advanced stage in the evolution of social shopping. Already a hit in China, it’s expected to gain traction globally. This method integrates shoppable links into live videos, enabling influencers and video bloggers to capitalize on peak engagement moments with their audience. This format leverages direct interaction and real-time connection, allowing viewers to buy products while engaging with content.
Customers’ In-Store Shopping Preferences
Shopping in-store is still highly popular today. Even though online shopping has become significantly more popular, most shoppers still make in-store purchases. This lets shoppers take advantage of special discounts, cut shipping costs, and see the product before purchasing.
Moreover, some types of in-store purchases will never go away. These are businesses that offer in-person service, food and beverages, and a variety of other services.
Benefits of In-Store Shopping
Despite the numerous benefits of the Internet, shopping in-store continues to have massive benefits and a significant place in retail. Some aspects of an in-person experience are unique, such as physically inspecting a product or speaking with a knowledgeable sales assistant. Let’s not forget the peace of mind from knowing exactly what you’re getting when you walk out the door with your purchase. Nobody wants to be worried about the reliability and consistency of online order deliveries. So, whether it’s saving money on shipping or checking out clothes from their favorite store, in-store shoppers enjoy a plethora of benefits, including:
Support Local Businesses
One of the most compelling reasons to buy in-store is to support local businesses. Many people are willing to trade convenience and savings in order to support their local community. When you shop locally, you acquire more than just a product. You’re supporting the local economy.
Easily Test Products
Some items are easier to purchase if you can inspect them in person to ensure quality. When it comes to clothing and cosmetics, stores allow you to test the items to ensure that they are perfect for you. Many products, from eyeglasses and mattresses to a new car, are worth the additional time and effort to test before purchasing.
Returning Items
Removing items from your shopping cart can be a pain on a poorly designed website. Sometimes, customers must leave their page to remove an item from their shopping cart. Shopping in stores eliminates this inconvenience because the shopper can physically remove the item.
Personalized Experience
A friendly and knowledgeable sales assistant and an up-close view of the products give a more personal shopping experience. This is especially common for local and specialized stores where you’ll probably speak with someone familiar with the products. Personal recommendations and expert advice can both be quite valuable.
The Future of In-Store Shopping
One significant change in consumer behavior is the shift towards online retail, which has become more apparent as we observe the retail sales dynamics in the US. While retail sales are projected to grow by 2.5% to 3.5% in 2024, this marks a slight decrease from the 3.6% growth rate of 2023. In January 2024, retail sales in the US saw a year-on-year increase of 2.34%, a figure that, although positive, reflects a slowdown, partly due to the impact of online sales.
The widespread availability of smartphones and high-speed internet has enabled consumers to access a global marketplace from their homes. The ease of online shopping—where customers can effortlessly browse products, compare prices, and make purchases—continues to reshape consumer habits. Both large e-commerce platforms and small businesses have adapted to this trend, fostering a competitive environment that constantly drives innovation.
However, in-store shopping still retains a significant role in the retail ecosystem. Many consumers start shopping online to research products and compare prices but purchase in physical stores. This hybrid shopping approach ensures they get the best value before making a purchase decision.
Meanwhile, traditional brick-and-mortar stores are not standing still. They are integrating technology to enhance the customer experience. For example, Amazon Go stores have revolutionized the physical retail experience with their “just walk out” technology. This technology eliminates the need for traditional checkouts and cashiers by using advanced technologies such as computer vision and deep learning to monitor which products are taken and automatically process payments.
No matter the future of in-person shopping, online shopping will always be involved.
What Products are Typically Purchased Through Each Sales Channel?
The option to shop online has empowered customers to choose whom they buy from and how much they pay. Yet, the nature of the product plays a significant role in deciding whether to purchase online or in-store.
Consumers are more likely to purchase familiar products online, where they have a clear expectation of the outcome of their purchase. On the other hand, when it comes to less familiar products, they might prefer shopping in person, particularly if there’s a chance they might need to return the item, opting out of the convenience of online shopping for greater assurance.
Small business owners can use strategic pricing and marketing to capitalize on these consumer preferences in each channel. For instance, well-known branded products that are widely available from other retailers might be more economically sold online, where aggressive pricing can be applied. Conversely, exclusive or newly launched products that customers prefer to see and feel in person might be better suited for in-store sales, justifying the costs of physical store space and inventory without the need for heavy discounts.
Additionally, retailers can benefit from adopting an omnichannel strategy. For example, products that require significant sensory engagement, like perfumes or shoes, might be sold in-store to attract first-time buyers while also being available online for convenient repurchases.
Exploring the Synergy Between Brick-and-Mortar Stores and Online Shopping
Integrating brick-and-mortar stores with online shopping offers unique advantages. When customers choose to shop in person, they’re driven by specific benefits such as personal assistance and the immediate gratification of leaving the store with their purchase in hand, despite potential drawbacks like higher prices or the item being out of stock.
Conversely, online shopping demands minimal effort but doesn’t compromise on customer expectations. Shoppers are drawn to online stores for the wide range of choices, transparent inventory levels, and the ability to compare prices, read customer reviews, and find promotional offers.
So, should your business focus solely on one channel? Not necessarily. Adopting an omnichannel approach allows you to leverage both brick-and-mortar and e-commerce platforms. Small business owners can maximize their sales potential by understanding how each channel meets customer expectations.
Here’s how you can blend the two effectively:
- Highlight in-store services: If your customers expect personal attention when they visit your store, ensure that your staff is trained to provide a hands-on shopping experience.
- Enhance online convenience: For your e-commerce site, cater to customers looking for speed and ease. Optimize your product descriptions with keywords they are likely to search for, offer fast shipping options, and allow for guest checkouts using preferred payment methods.
- Merge strategies for greater convenience: Consider innovative approaches like buy online pick up in-store (BOPIS), which combines the convenience of online shopping with the immediacy of physical stores. This method is growing in popularity; a report by the National Retail Federation found that 70% of U.S. consumers prefer the convenience of BOPIS. Additionally, enable your in-store staff to assist customers with online orders for unavailable in-store items. This hybrid strategy meets varied consumer preferences and enhances overall customer satisfaction.
Conclusion
The ongoing debate between in-store and online shopping reveals a nuanced landscape shaped by evolving consumer preferences and technological advancements. While online shopping offers unparalleled convenience, extensive product selection, and seamless transactions, in-store shopping retains its appeal through personalized experiences, product testing, and support for local businesses.
The future of retail lies in a hybrid model, where customers leverage the advantages of both platforms, initiating their shopping journey online and finalizing purchases in physical stores. Businesses must adapt by optimizing online checkout processes, diversifying payment options, embracing conversational commerce, and exploring innovative concepts like live shopping. As consumer behaviors evolve, the retail landscape will undoubtedly undergo further transformations. Yet, the symbiotic relationship between in-store and online shopping ensures that both market sections will remain integral to the shopping experience.
Frequently Asked Questions
What are the main reasons consumers prefer in-store shopping over online shopping?
Consumers favor in-store shopping because it offers direct product interaction, personalized assistance, and the immediacy of taking items home without waiting for delivery, enhancing their shopping experience.
How do online and in-store shopping compare in terms of product selection?
Online shopping typically offers a broader product selection due to unlimited virtual shelf space, showcasing various brands and categories of items. In contrast, in-store options may be more limited by physical constraints.
Are there specific product categories that consumers prefer to buy in-store?
Yes, products like appliances and home theater systems are often preferred for in-store purchases, allowing consumers to assess quality firsthand. Conversely, items like computers and tablets are commonly researched and bought online.
What challenges do consumers face with online shopping?
Challenges include the inability to inspect products physically, potential shipping delays, extra delivery costs, and concerns about data security and product returns despite the convenience of online shopping.
How has the trend toward omnichannel retailing affected consumer shopping behavior?
Omnichannel retailing blends online and in-store benefits. Consumers start online to research and compare, then complete purchases in-store for immediate possession and potential discounts. This approach combines the strengths of both channels for an enhanced shopping experience.
