While traditional retail stores are familiar, when a store goes online, merchants quickly discover the retail environment is not the same. There are major differences between offline and online, and one must take these differences into account when constructing a new store or refitting an existing one. Five differences between offline and online stores are discussed: - Location - Construction - Size - Presentation - Personnel In the end, retailers can use these differences to their advantage, always remembering that customer needs come first.

1. Five Differences: Offline
and Online Stores
Charles E. Crouch
© Charles Crouch 2004-14

2. While we’ve been building offline
stores for thousands of years...
Fast Food Restaurant, Pompeii, 79 AD
Photo: C. Crouch

3. Online stores are barely
20 years old!
Dell circa 1996
Images: telegraph.co.uk
Amazon circa 1996

4. When going online,
merchants quickly
found that selling
is not the same!
Markets are altered
Customers actions change
and
Stores become different!
Photo: C. Crouch

5. Here are five ways offline
and online stores differ
Location
Construction
Size
Presentation
Personnel
Photo: C. Crouch

6. Location
Offline stores have a physical location which
must be taken into account:
• easy street address to be found
• convenient customer access
• no (hopefully) nearby competitors
Offline stores require a commitment in time and
effort by customers to go there. This often
Photo: iStockPhoto
makes them more likely to buy.

7. Location
Online stores are located someplace in an online
world where:
• there is no obvious physical presence
• accessible by a worldwide audience, 24/7
• competitors are (unfortunately) only one click away
Online stores require less customer commitment; a
simple click to visit. Keeping potential customers on
the website is a major challenge for online stores.

8. Construction
Whether building a new store or refitting an existing
one, constructing an offline store is a significant task:
• months, if not years, in time
• major cost, especially for high quality retail space
• specialty contractors and skills required
• changes and modifications are not easy
Offline stores operate on longer time frames.
Changing them can be a major effort, so alterations
Photo: iStockPhoto
are typically made every five to ten years.

9. Construction
Since it has no physical presence, an online store is
built in a different manner:
• days to months, especially using pre-built packages
• variable cost, depending on features and functions
• but specialty developers are still required
Changes and modifications to an online store can be
made any time. This means online stores can react
Photo: iStockPhoto
faster to changing market conditions.

10. Size
Offline stores must be large enough to accommodate:
• the size of the merchandise
• the expected number of staff and customers
• space for deliveries and storage
Constructing an offline store large enough to hold
Photo: C. Crouch
everything can be a major cost.

11. Size
Online stores are sized in a different manner:
• bandwidth to send and receive data
• power to show websites and process transactions
• storage to retain website and customer information
While it is easy to add capacity to an online store,
fast changing conditions, such as an overly popular
sale, can still overwhelm servers and cause the
Photo: iStockPhoto
store to go down.

12. Presentation
All merchants must display their products to
attract customers and encourage them to buy. The
physical layout of your store reinforces both:
• your company image
• the type of customers you attract
In an offline store, customers can use all their
senses to enhance their selection criteria
Photo: C. Crouch
Photo: C. Crouch

13. Presentation
For an online merchant the main connection with
your customer is through a screen:
• customers can only see and hear
• criteria such as size and weight are not possible
The visual presentation is even more important, as
this is the main selection criteria for customers.
Photo: C. Crouch

14. Personnel
Offline stores must hire,
train and manage staff for
face-to-face service:
• each store location
• local regulations must
be observed
While face-to-face staff provide a great advantage,
they require ongoing management attention.
Photo: C. Crouch

15. Personnel
Online stores also use staff to:
• provide a pleasant experience,
even if not face-to-face
• use partners and service
providers for many functions
Whether own staff or external partners, online
stores can use people from worldwide locations.
Photo: Hubspot

16. Putting it All Together
Respect the differences between
offline and online stores
Use them to your advantage
Keep your customer needs at
the top of your store criteria
Photo: iStockPhoto

17. Other Presentations
on SlideShare
Photo: C. Crouch

18. Questions Comments and Suggestions?
Charles Crouch
info@charlescrouch.com
CharlesECrouch
www.charlescrouch.com
Photo: iStockPhoto