{"type":"document","data":{"id":"e73ae315-1028-47a3-a5f0-81ee03f8572c","localeString":"en-GB","publishDate":"2025-04-04T10:19:09.239+02:00","contentType":"onecms:editorialPage","hasMacro":false,"flexPageMetadata":{"afmBanner":false,"robotInstruction":{"noIndex":false,"noFollow":false},"description":"Selling through an online store or a physical shop? It’s a question many entrepreneurs face. Discover the pros and cons of each sales channel here."},"mainHeaderZone":{"componentType":"editorialHeader","coreHeader":{"title":"Online store vs physical store: how to choose the right sales channel?","subtitle":"Which is better to have an online store or a physical store? As a new entrepreneur, deciding between the two can be a challenging decision. There is no single ‘best’ choice, as each sales channel has its own (dis)advantages. Additionally, various other factors, such as your target audience, budget, and product type, are essential to consider.","body":"What are the pros and cons of each sales channel? What types of online stores are there? This article will help you make an informed decision that suits your specific business needs and goals."},"backLink":{"textLink":{"url":"/en/business/starters","text":"Starting your business"}},"date":"2024-07-16","readingTime":5},"flexZone":{"flexComponents":[{"componentType":"sectionTitle","title":"Online store vs physical store: pros and cons"},{"componentType":"paragraph","richBody":{"value":"<p>When choosing between <a rel=\"noopener noreferrer\" target=\"_blank\" data-type=\"internal\" href=\"/en/business/starters/webshop\">e-commerce</a> and a physical shop, it’s important to consider the advantages and disadvantages of each sales channel for your business. Below you can find an overview of the key aspects for each channel.</p>"}},{"componentType":"paragraph","title":"E-commerce"},{"componentType":"highlight","richBody":{"value":"<p><strong>Advantages</strong>:</p><ul><li>Lower operational costs: No need to pay rent for physical locations or expenses for store personnel.</li><li>Broad market access: You can reach potential customers worldwide without geographical limitations.</li><li>24/7 availability: Your customers can shop at any time.</li><li>Flexibility: An online store is easier to adjust following ever-changing needs and trends.</li><li>Extensive data analysis: An online store provides detailed insights into customer behaviour and sales trends through data.</li></ul><p><strong>Disadvantages</strong>:</p><ul><li>No physical interactions: Customers cannot see or try products, and you as a shop owner do not have direct contact with your customers.</li><li>High competition: The online market is already very saturated, making it difficult for your online store to stand out from the others.</li><li>Logistical challenges: The costs and complexity of shipping and returns are just one example.</li><li>Technical issues: You fully depend on website performance and security.</li><li>Need for a reliable payment system: Setting up reliable and user-friendly online payment systems can be complex and costly. Fortunately, the basic package from <a href=\"https://www.ing.be/en/business/payments/incoming-payments-ing-checkout\">ING Checkout</a> offers small businesses and startups a free all-in-one payment solution for online stores with more than 25 payment methods.</li></ul>"}},{"componentType":"paragraph","title":"Physical shops"},{"componentType":"highlight","richBody":{"value":"<p><strong>Advantages:</strong></p><ul><li>Personal interaction with customers: You can provide direct customer advice and service.</li><li>Trust and loyalty: Physical stores can build trust through personal contact and customer-focused advice, leading to higher customer satisfaction and loyalty.</li><li>More impulse purchases: Customers are more likely to make spontaneous purchases during a physical shopping experience.</li></ul><p><strong>Disadvantages:</strong></p><ul><li>Higher operational costs: Including rent, utilities, and staff expenses. In Belgium, you are also required to accept electronic payments in your store, which adds to the costs. Still looking for the right and most affordable option? Discover how <a href=\"https://www.ing.be/en/business/payments/incoming-payments-merchant-services-business\">ING Merchant Services</a> can help you with that.</li><li>Limited market access: You depend on your geographical location and local customers.</li><li>Limited opening hours: Less accessible outside regular store hours.</li><li>Less flexibility: A physical store is harder and slower to adapt to market changes.</li></ul>"}},{"componentType":"sectionTitle","title":"Types of online shops"},{"componentType":"paragraph","richBody":{"value":"<p>If you opt for an online store, the first option that comes to mind will probably be a traditional website. However, there are several types of online shops that you can consider as a business starter, once again each with its own features and benefits:</p><ul><li><strong>Commercial website</strong>: As mentioned, this is the most traditional form of an online shop, where you build and manage your own e-commerce website.</li><li><strong>Marketplaces</strong>: Websites like Bol.com or Amazon offer entrepreneurs the opportunity to sell their products on their platforms, which already have a large existing customer base. While this allows you to reach customers quickly, you often have to pay a commission on each sale.</li><li><strong>Social media shops</strong>: Platforms like Instagram, Facebook, and Pinterest offer features that allow you to sell directly from your social media account. This is particularly interesting for businesses with a large following and a strong focus on visual marketing.</li><li><strong>Dropshipping stores</strong>: With dropshipping, you sell products through your online store without stocking up on goods. Instead, each product is shipped directly from the supplier to the customer. This reduces your risk and inventory costs, but it can also lower your profit margins.</li><li><strong>Affiliate marketing</strong>: With affiliate marketing, on the contrary, you don’t sell your own products but promote products from other companies and earn a commission for each sale made through your link. This type of e-commerce requires less capital but is often less profitable.</li></ul>"}},{"componentType":"sectionTitle","title":"Combining an online and physical store"},{"componentType":"paragraph","richBody":{"value":"<p>When weighing the pros and cons of each sales channel, it becomes clear than an <strong>online store and a physical store can complement each other well</strong>. However, for new entrepreneurs, managing both can be challenging due to the significant investment of time, money, and resources required.</p><p>In the long term, this so-called <strong>&apos;omnichannel approach&apos;</strong> can definitely be worthwhile. By being present both online and offline, you can reach a broader audience and offer customers a consistent and flexible shopping experience. In short, choose the channel that best fits your current needs and capabilities. Start small and gradually expand as your business grows and your resources allow.</p>"}},{"componentType":"highlight","title":"Build your business with confidence","richBody":{"value":"<p>Discover the <a href=\"https://www.ing.be/en/business/starters/starterspackage-current-account\">ING Starters Package</a> – everything new entrepreneurs and startups need, all bundled into one comprehensive package.</p>"}},{"componentType":"paragraph","title":"Disclaimer","richBody":{"value":"<p><small class=\"footnote\">This article is for informative purposes only and the information set out herein may change with time. We therefore recommend that you always reference specific regulations and requirements with the competent authorities for the latest information. Additionally, we advise that you seek professional advice on a case-by-case basis before making any decisions. Please note that ING Belgium SA/NV cannot be held liable for any decision taken on the basis of the information provided.</small></p>"}}]},"complementaryZone":{"flexComponents":[{"componentType":"cards","cards":[{"componentType":"productCard","cardType":"product","cardSize":"small","title":"Opening an online shop: how do you get started?","intro":"Your own online shop in 9 steps.","image":{"transformBaseUrl":"https://assets.ing.com/transform/087e3508-4d9a-4a23-be49-ad401cfa8c6c/A-man-uses-an-application-on-a-smartphone-to-deliver-food-and-vegetables","type":"image","width":859,"original":"https://assets.ing.com/m/7696a0b0ac0db00e/original/A-man-uses-an-application-on-a-smartphone-to-deliver-food-and-vegetables.jpg","extension":"jpg"},"link":{"url":"/en/business/starters/webshop"}},{"componentType":"productCard","cardType":"product","cardSize":"small","title":"Receiving payments in your webshop","intro":"Offer your customers a wide range of payment options.","image":{"transformBaseUrl":"https://assets.ing.com/transform/3e3d54dd-25fa-4189-9856-9e62f6f37c45/young-woman-using-laptop-while-sitting-on-table","type":"image","width":5932,"original":"https://assets.ing.com/m/70f0938332128562/original/young-woman-using-laptop-while-sitting-on-table.jpg","extension":"jpg"},"link":{"url":"/en/business/payments/incoming-payments-ing-checkout"}}]}]},"legalZone":{"flexComponents":[{"componentType":"paragraph","title":"Disclaimer","richBody":{"value":"<p><small class=\"footnote\">This article is for informative purposes only and the information set out herein may change with time. We therefore recommend that you always reference specific regulations and requirements with the competent authorities for the latest information. Additionally, we advise that you seek professional advice on a case-by-case basis before making any decisions. Please note that ING Belgium SA/NV cannot be held liable for any decision taken on the basis of the information provided.</small></p>"}}]}}}