by John Cane

Created on: April 29, 2008

The internet has dramatically changed the way that retailers do business, but it seems that early fears that the internet would kill retail stores was an unfounded fear. The stores that have had difficulty competing are those that failed to adapt. Here is a fun exercise; walk into any retail store and ask them what their web address is. You will find that almost every one has a website where they advertise their services, and many (if not most) will actually be able to take orders over the internet. Conversely, you can send an e-mail to almost any internet store and ask them where their retail location is, and they will have one or more retail stores, where you can walk in and shop.

Everyone from the big box stores (office Max,WalMart, Sams Club etc.) to Pizza Delivery, and mom and pop toy stores are selling on the web. I personally work in the Bicycle industry where there was a large outcry that internet shopping would put the shops out of business and that people would no longer have a place to go get their bikes fixed. While the dynamics of the industry have changed, the shops are still there and still fixing bikes.

So what has changed. Almost every shop I know of is selling online. If they don't have a well designed online store with a large inventory, they at a minimum have one guy sitting in back hawking stuff on e-bay. The internet business gives them enough volume to stay competitive with the online retailers on the high end, and on the low end, there is no way that an online store can compete with a retail store. For low dollar parts, the shipping charges quickly eat up and savings that you may have had on the product. So the average person who wants a $10 part and wants it put on for them will go to the retail store.

The other thing that has changed is the service fees. Often if you buy parts at retail the mechanic will put it on for free or at discount. If you come into the store with parts you purchased online, you will find that you will pay full boat on the labor.

The biggest issue that local retailers face is the people who come in just to touch and feel products they intend to buy online. Things like shoes are difficult to purchase online because size is so difficult. So if a local retail stocks a shoe that is available at a discount online, they may have trouble getting rid of stock, but will have a lot of people trying on the shoes. Despite this concern, it seems that most people once they have the shoe, or other product in had, will go ahead and buy it so that they can have and use it immediately.

In short while the internet has changed the way you do business, local stores still have the following advantages.
1. Allow people to touch and feel product which alleviates quality and size concerns.
2. Service
3. Rapid delivery.
4. No shipping charges on low dollar and heavy items
5. Local stores can also compete in the internet market.

So sorry to all the folks who think the internet is going to take over the world. The retail shops are here to stay.

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