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Will e-commerce eventually replace traditional brick and mortar retailing? Why or why not?

E-commerce comes in different variants. It can be business to Business, B2B, business to Consumer, B2C, consumer to Consumer, C2C, and Consumer to Business, C2B, etc. B2C is the retail part where the business and customer meet, and that is the form that is sweeping across the retail market across the world, threatening the success and existence of the traditional retail structure. Research has shown that the number of consumers making purchases online has continued to increase.

The cost-saving and synergies enjoyed in the online space cannot be beat!  People shop online because of the convenience, choice and timesaving it affords them.

 The growth of e-commerce would eventually compel some brick and mortar businesses to restrategise on the way of doing business. But at the moment, they are yet to affect sales because most people still prefer to feel and touch whatever they want to buy, even the pay on delivery adopted by e-commerce operators has not convinced many to join the trend.

Yes, e-commerce pose a competitive threat to traditional retailers and takes away a large portion of its customer base; however it could never replace offline commerce because they serve different purposes. For instance, sometimes one just fancy going to a shopping mall by oneself and touching the actual products, talking to the sales representative in person, etc. Just like TV didn’t kill the radio, e-commerce couldn’t kill offline commerce. But instead online business would only complement brick and mortar businesses than threatening its existence. Hence both of them can work hand in hand to ensure the best and most complete shopping experience for the customer.

What are the benefits that traditional retail stores provide that e-commerce cannot provide?

E-commerce retailers have a lot of advantages over bricks-and-mortar stores — diverse inventory, low prices, minimal overhead. But bricks-and-mortars' key asset is they're still where people can go to see and feel products. E-commerce is lagging behind because of lack of security, fraud, actual shopping experiences and shipping charges. Some of the benefits that traditional retail stores provide that e-commerce cannot provide are explained below:

Customer Rapport

In a retail setting, customer rapport benefits both you as a buyer and as a seller. Retail outlets allow customers to see what they are buying up close and, as opposed to online stores, they provide instant gratification, because the customer walks away with their purchases immediately. A friendly and helpful staff also helps to build customer loyalty, ensuring that customers return again and again. From a business standpoint, retail outlets allow you to reach a customer base that might be put off by the online marketplace.

Greater Sales Potential

With a retail outlet, one can sell a variety of products and expose customers to items that they didn't even know they needed. For instance, a customer might enter the outlet looking for a pair of jeans, but then wind up purchasing jeans, three shirts, a belt and a tie. By consolidating a variety of merchandise in one central location, you dramatically increase your sales potential.

Less Drama

If deciding whether to sell in a retail outlet vs. online, consider that a retail outlet spares one from having to charge shipping costs and from having to deal with lost packages, tracking codes, customer addresses and complicated online sales databases. With a retail outlet, one can make each sale with greater confidence and fewer conflicts.

Benefits from Consumers

If you are consumer and are considering reasons to shop at traditional retail outlets, as opposed to online, consider some of the same benefits. You can save on shipping costs, receive instant gratification, inspect your items carefully before making your purchase and not have to worry about packages getting lost in the mail. You also can have all of your questions answered immediately by helpful staff, rather than having to rely on email messages and phone calls.

 Competition

Being part of a world market means that everyone can be a customer. It also means that everyone can be a competitor. If your brick-and-mortar company has a rural, geographically focused marketing base then it would be a bad idea to invite competition from all over the world. Simply focus the marketing efforts on own customer base.