Although many people feel that ecommerce has taken over everything, brick and mortar stores are still alive and well. Although online buying is more convenient and offers a better shopping experience, it only accounts for 14.3% of all retail transactions globally.
Is this something you want to overlook as a retailer? You can see that internet retailers account for less than 15% of the market, while brick and mortar businesses account for the remaining 85%. Most likely not.
Pop-up shops, on the other hand, are becoming more popular, particularly during the Christmas season. Online merchants are employing pop-up shops to increase income, and although they are quicker to put up than brick and mortar stores, they do come with their own set of issues.
We’ll compare brick and mortar stores to pop-up shops in this post to find which is best for you.
What is the difference between a brick and mortar store and an online store?
Even if it’s just one, a company or retail store has a physical location. Because you may visit these establishments and make a purchase in person, all of the retailers in your neighborhood are considered brick and mortar stores.
A brick-and-mortar shop is more costly to run than an online store since it has higher overhead expenditures.
People that visit shops in person, on the other hand, are in a purchasing mentality, therefore conversion rates are greater in brick-and-mortar businesses. Because there are no distractions, customers will make a purchase as soon as they locate the correct goods.
Customers may instantly compare prices and items across different brands and platforms using ecommerce sites, limiting the possible conversion rate.
What exactly are pop-up stores?
Pop-up stores are temporary storefronts set up by ecommerce companies to assist them attract new consumers and connect with current ones. They’re popular in major cities because of the high foot traffic, and they may be leveraged to directly generate additional sales.
There are no long-term expenditures connected with maintaining and operating a conventional storefront, making them quicker and more cost-effective to start up.
Putting together a pop-up shop
Even while pop-up stores seem to be simpler to set up, they do have their own set of obstacles. That’s why hiring an agency to handle the majority of the procedure for you may save you a lot of money. You’ll need to hire a seasoned firm to put things up the way you want them.
Setting up a pop-up store costs money.
Pricing is crucial since you don’t want to run out of money as soon as you open your business. When it comes to expenses, there are several factors to consider. These are some of them:
- Permits, licenses, and insurance
- Rent is expensive.
- Costs of employees
- Shipping and logistics, as well as maintenance and design
- Store software and hardware marketing
Pop-up stores, as you may know, are only open for a limited time, and the shorter the duration of the pop-up shop, the cheaper the total expenditures. To save money, be as detailed as possible with your timeframe.
Choosing a place for a pop-up business is a difficult task
Because the primary goal of a pop-up store is to raise brand recognition, you’ll want to make sure it’s in an area with a lot of foot traffic. You must first determine where your possible prospects are, then choose the best spot among the throng, come up with a few possibilities, and then visit them at various times of the day.
Keep an eye on foot activity, prospective customers, and nearby retailers and restaurants. Use these parameters to narrow down your choices and make a decision.
Pop-up store for licensing
Licensing prices, restrictions, and rules vary by city; you’ll also need a business license to safeguard your shop and the items within. Make sure to verify your local licensing requirements, since they might vary depending on where you are.
Now let’s talk about how to open a physical business.
Creating physical storefronts
A brick and mortar business is more difficult to open than a pop-up store since it requires a lengthier commitment. You may be buying or leasing a storefront, which means you are financially tied to the area for a certain amount of time. But first, let’s go through some of the actions you should follow.
Plan out your strategy
We can presume that if you’re launching a shop, you want to remain in it for the long haul. You must establish a comprehensive business plan in order to run your firm properly and finally generate a profit.
You must create a strategy that covers the following topics: your product, target clients, employee types, competition, and pricing range. Check out this post for a more in-depth look at how to write a business plan.
Choose a name for your retail establishment
It’s also crucial to choose the appropriate name; it should be straightforward, have a meaning, and be distinctive. Please don’t take chances with your brand name. Work on and revise your name till it’s short and straightforward yet memorable enough for your customers to recall. This is a fantastic essay on how to name your company.
First and foremost, take care of the legalities
Make sure you chat with the correct legal team that can advise you on how to legally set up your shop. Licenses, permits, employment identification numbers, and seller’s licenses are all required.
Locate a suitable place
In retail, location is everything; you want a location that’s simple to locate and has a lot of foot traffic. You’ll need to come up with a few location alternatives, much like with a pop-up shop, and then go check them out at various times of the day.
Keep in mind that you may need to completely renovate or remodel the area, so pay special attention to the space and the amount of money you’ll have to spend before choosing on a location.
Examine your marketing options
Even if you’re in a popular region, you’ll need to be prepared to spend a lot of money on marketing; you’ll need to advertise your shop as much as possible. The greatest place to start is on social media, where you can engage with local audiences and show them what you have to offer.
If you have the funds, you can engage a social media marketing business to handle the work for you, but if you don’t, here’s a terrific piece to get you started.
Which one would you choose now? Start your business online and market your items in a prospective pop-up shop if you wish to test the waters. Consider opening a brick-and-mortar business as time goes on.