Why Brick-and-Mortar Stores Cost Consumers So Much More

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In today’s interconnected world, it just a fact of the matter that, in general, brick-and-mortar stores cost more money to shop in. You can buy almost anything on the web today and have it delivered right to your home, often within a day or two. There are always some things that will just work better purchased from a store, say clothes, or shoes, items which likely need to be tried on before they are purchased, but the general buying habits of the public are changing. There are distinct limitations that plague brick-and-mortar stores which simply do not apply to Internet retailers.

Businesses that operate in a physical building are immediately subject to increased cost of business because they are responsible for rent or mortgage, building maintenance, landscaping, signage, taxes, display fixtures, and many other costs. Businesses are in it to make a profit, and so they must pass on these costs of business to the consumer through higher prices. When a business operates solely online many of these costs are immediately eliminated which allows them to bring the exact same products to consumers while keeping their price point much lower.

Physical storefronts have another major limitation that does not affect online retailers: location. This limitation presents itself in many ways. One the one hand, having a prime location for a storefront can help bring additional business in, but those prime locations are few and far between and often come with a premium price tag, further increasing markups for the consumer. Secondly, a physical building is just that; a building cannot be in two places at once. If a business is located in Chicago it will not likely be doing business with consumers from Atlanta. You simply cannot reach all the possible consumers of your product if you operate out of a physical storefront. The Internet has no such physical limitations and it is just as likely that an Internet company will sell to people all over the country and even all over the world!

There is also a large convenience factor for online businesses versus physical storefronts. Many people enjoy being able to order products and have them delivered directly to their homes without having to drive around and search for their product. Stores, by their very nature, have a limited selection of products, but on the Internet, if you don’t find a product on one website, it is very easy to just try another website until you do find what you are looking for.

Online only businesses are truly able to pass on incredible cost savings to their consumers because they are taking advantage of what the Internet offers them. There are no building costs, no display racks to purchase and maintain, and no landscaping to keep up; costs are significantly lower and that allows them to sell that much lower to their consumers. People don’t often like shopping for home office supplies or computer equipment in a store where they may have to drive all around time. It is much easier to find ink and cables and plenty of other products online and have them arrive at their home, no hassle. Products can often be much cheaper and easier to purchase online, and many people are taking advantage of this great opportunity for cost savings!