The retail industry has changed a lot since the development of eCommerce. The introduction of giants such as Amazon and eBay caused a huge amount of disruption to traditional brick-and-mortar stores. However, while they may be competing industries, there are enough differences between them to mean that they can still coexist. Although eCommerce may provide a lot of benefits, there are still advantages to shopping in person. In addition, many retailers have stopped selling online after experiencing the hidden costs of eCommerce.
Has the Success of Amazon Stifled eCommerce?
Amazon is the UK’s leading eCommerce platform, with around 86% of surveyed shoppers using the site at some point. In addition, there are now more than 15 million UK subscribers to Amazon Prime, showing just how popular the site is. Many feel that with the popularity of Amazon so high, there isn’t much opportunity for rival eCommerce sites.
The vast majority of online sellers use fulfilled by amazon (FBA) to carry out their orders, making the most of the services distribution centres as well as its superior reach and online traffic. However, there are still many other successful eCommerce platforms within the UK that either directly compete with Amazon or operate within another niche. eBay is perhaps the biggest, with 22 million active users.
Aside from eBay, there are other platforms such as Argos, John Lewis and Currys. These stores all operate eCommerce platforms while also having brick-and-mortar stores, allowing consumers to visit them in person. There are some big advantages to having physical stores, which is one of the reasons why retail vs eCommerce isn’t as much of a direct comparison as it first looks.
Why Retail Shops are Still Popular Among UK Shoppers
Although eCommerce is growing, analysts don’t expect it to wipe out retail shopping any time soon. There are still many benefits of retail shops that mean they’re popular with UK shoppers. Instead of eclipsing the role of the physical store, eCommerce is simply helping to change it and provide a better experience for consumers.
Brick-and-mortar shops will likely always be popular as they provide a way for consumers to see, feel and try on a product before buying. One of the main disadvantages of buying online reported by consumers, is that there’s no way to try before you buy. This can lead to differences in the expectations and realities of a product.
The Hidden Costs of eCommerce
Aside from the benefits offered by retail stores to UK shoppers, there are also hidden costs associated with eCommerce that have put off a lot of businesses. Although eCommerce can potentially open up a store to make more sales, this can come with a lot of additional costs that are not always obvious at first.
The first of these costs is in advertising. When a store is on the high street, it will always be found by shoppers. However, it’s a different story online. Shoppers find what they want online by using a search term in a search engine or by going to one of the eCommerce platforms they know and trust. For smaller businesses, it can be hard to be found online. Link building services in Europe can help brands achieve more visibility online, but they often still get overlooked for the larger platforms.
Managing deliveries and returns can also bring with it hidden and unexpected costs. Online shopping has changed consumer behaviour, and recent research suggests that 30% of UK shoppers deliberately over-purchase items before sending unwanted ones back. This can lead to a lot of high costs for eCommerce sites, both in handling deliveries and returns that then cause a loss of revenue. This particularly affects online-only and smaller businesses.
