E-Commerce vs. Local Store: Why E-Commerce Is the Future of Retail?

Cubix

15 May, 2020

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4 min read

E-Commerce vs. Local Store

Are you struggling to operate your local store and unable to increase sales? Then, you need to look into going online with your business.

We live in a digital world, where people expect high-quality, advanced products, and hassle-free processes such as shopping from home. Meaning, hiring an e-commerce development company isn’t a choice but a necessity to survive the competitive market.

Global e-commerce sales are expected to exceed $7 trillion by 2025 and could surpass $8 trillion by 2027. By 2030, forecasts suggest that e-commerce will account for over 25% of total global retail sales, driven by increasing digital adoption, mobile commerce, and expanding online marketplaces. So, now is the time to hire a Magento developer and be a part of this thriving industry with an e-commerce store.

This blog highlights key points to help you understand why e-commerce can boost your revenue from 2025 to 2030, whereas a local store may not:

E-Commerce vs. Local Store: Top Trends Shaping the Future of Retail

If you have an idea for an e-commerce store, then 2025 is the year to invest and launch your startup as the industry skyrockets in the coming years. Let us look at the top trends that will bring in impactful changes:

Emerging Markets

If you have an idea for an e-commerce store, then 2025 is the year to invest and launch your startup as the industry skyrockets in the coming years. E-Commerce vs. Local Store has become a major debate, as online shopping continues to reshape consumer behavior. India, Russia, South Africa, and Brazil are some of the emerging markets that will shape the upcoming e-commerce industry. By 2026, it is estimated that over 5 billion people will have access to the internet, driving a significant surge in e-commerce revenue with a massive influx of potential customers. Let’s explore the top trends that will shape the future of online commerce and bring impactful changes.

By 2026, an estimated 25% of all retail sales will come from customers in emerging markets. This highlights the growing importance of e-commerce, as setting up an online store will provide access to a vast, untapped pool of potential sales.

AI Integration

Unlike brick and mortar stores, one eCommerce demerit that exists is that consumers can’t examine the products up close before purchase. By 2026, surveys indicate that around 60% of consumers see the inability to touch and feel products before purchasing as the biggest drawback of online shopping.

But with the advancements in technologies, e-commerce retail stores show unlimited potential to progress and grow. Augmented reality, for example, lets you provide a hypnotic shopping experience where the customers will have the opportunity to interact with the products.

Furthermore, Shopify will also be rising in popularity as Shopify AR permits brands to display consumer products in natural environments. Customers can make smarter decisions conveniently and swiftly, as they get to witness whether the item fits their purpose or not.

Online vs. Physical Stores

The online vs. physical store discussion is never-ending, where people fall into two groups. When it comes to the future of the e-commerce industry, one group believes that it will not be long before physical stores fade away, and we shift towards virtual shopping.

Contrarily, the other group sees an era of roaming the malls, transitioning to a renaissance.

The reality is that e-commerce sales may be rising exponentially, but that doesn’t mean physical stores cannot be of benefit. Instead of being just a physical representation of their online counterparts, brick-and-mortar stores are aiming to provide exceptional shopping experiences.

Nike, for example, opened up stores in New York and Shanghai. In its physical stores, the brand offers exclusive products, hands-on customization experiences, in-store fitness tests, games, and more. It’s an experience you can’t replicate online, which will play a significant role in securing their customers’ loyalty.

Thus, it can be said that e-commerce alone won’t be the source of revenue in the years to come. But a combination of physical and online stores will help take your business to the top.

B2B Businesses are on the Rise

B2C is not the only driving force in the e-commerce industry. By the end of 2026, B2B e-commerce revenue is projected to exceed $9 trillion, reflecting significant growth in digital business transactions.

By 2026, e-commerce will see a significant rise in businesses purchasing products, services, and software to streamline their operations and enhance team efficiency. With increasing digitalization, optimization will remain a top priority for companies worldwide.

Meaning, companies will need to switch to machine learning and artificial intelligence software to automate their processes and optimize productivity. Contrarily, they will also move towards purchasing ergonomic chairs for the comfort & wellbeing of their staff.

Continuous advancements in technology change our lives for the better. Not just in our everyday lives, but for businesses and company operations as well. So, it’s a no-brainer to understand why entrepreneurs are looking for ways to optimize their workflow and boost productivity.

That said, for B2B retailers, the road ahead offers unlimited potential for success, if you have an online address suitable to carry out bulk orders, volume-based discounts, invoicing, and more.

Fulfillment & Shipping

Another evolution on the horizon in the E-Commerce vs. Local Store debate is the rapid expansion of shipping and fulfillment centers worldwide. As more consumers shift to online shopping, the demand for fulfillment centers is growing to bridge the gap between supply and demand, ensuring swift and efficient product deliveries.

Global fulfillment centers are undergoing a major transformation with advanced technology integration to automate processes. These innovations enable businesses to offer faster shipping, enhance customer service, and significantly improve the online shopping experience, further strengthening the advantage of e-commerce over traditional local stores.

In a nutshell, with multiple warehouses across the country or around the continents, means you can have your products stored closer to your target market. Meaning, you can raise your profits and improve service quality by decreasing the shipping costs and time.

Wrapping Up

The future of e-commerce is undeniably positive. With the continuous innovations coming to light, it’s not far-fetched to say that the industry will experience an influx of customers, conversions, sales, and revenue.

So, hire an e-commerce developer and go online to leverage the potential of the growing industry. Contact us today, and we’ll help your e-commerce business take a flight.

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Cubix

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