Is online selling getting you more profits than your offline counterparts? But don’t relax just yet!

Questions like “Is offline or online business better” seem to be replaced by statements like “Online selling is the place to be” lately. Everyone has assumed that very soon we will probably have to say goodbye to most of the physical retail stores. But is that really true?

Yes, e-commerce is definitely expanding at an exponential pace, proved by figures everywhere. But that does not in any way mean that physical retail is doomed!

A recent report indicates e-commerce sales of $294 billion across 30 product categories in 2014. No longer a surprise, this figure is estimated to rise to $414 billion by 2018. Internet penetration is increasing amongst the different sections of society and online retailers are taking advantage leveraging on what the internet does best – 24 x 7 connectivity and access. Different varieties of products are offered at competitive rates, most often lower than physical stores, and free shipping or shipping at minimal rates.

But before we conclude that this means doom for offline retail, let us bust some myths about offline retail.

• Retail real estate is over. True, real estate prices are soaring, and have been so for some time, in the country. But if we look at any of the metros or smaller cities, there is no dearth of shopping malls and shopping centres that have come up in these years. In fact, more and different kind of shopping structures are being built to attract more customers.

• Physical stores are dying. It is a fact that majority of Indian population still don’t have complete access to internet. A lot of people are still not technology literate and out of those who are, there are many skeptical customers too. These people still depend on physical stores for their purchases.

• No one visits malls now. Completely untrue. People may buy online during weekdays but weekends are reserved for exploring and hanging out at malls.

Understanding the need to compete with online retailers, offline retailers are now exploring different methods to attract customers.

How should an Indian Online Seller counter the competition from offline stores?

If you are concentrating on competition from other online sellers only, undo the thought and identify that competition can come from offline counterparts also. Alter your marketing strategy and offers to accommodate competition from offline retailers also, so that customers will always prefer you over others despite other offers and options.