- Jul 17
- 5 min read
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Retail refers to the traditional method of selling goods and services to consumers through physical stores. Known as brick-and-mortar establishments, these stores offer a tangible shopping experience where customers can interact with products firsthand.
On the other hand, eCommerce encompasses the buying and selling of goods and services over the internet. This model allows for a broader reach as businesses can connect with customers globally without the need for a physical presence.
Wix is an all-in-one eCommerce platform that supports physical products, services, specialized business models like rentals or online ordering and digital programs such as online courses, all from a single backend.
The relevance of each model in today's business environment cannot be overstated. While traditional retailing relies on physical interaction and personal touch, eCommerce offers convenience and accessibility. Both models have their unique advantages and cater to different customer preferences.
As you consider both when starting your business, it's essential to understand their roles in shaping customer experiences and driving sales in a digital age where online shopping continues to gain ground in terms of reach and sales.
TL;DR: eCommerce vs. retail
eCommerce is buying and selling online, while retail is selling through physical brick and mortar stores. eCommerce wins on reach, cost and round the clock availability, while retail wins on personal service, immediate ownership and hands-on product experience. Many businesses run both to meet customers wherever they shop.
Factor | eCommerce | Retail |
Reach | Global, no location limit | Local, tied to store location |
Startup and overhead cost | Lower, no rent or utilities | Higher, rent, staff and utilities |
Availability | Open 24/7 | Limited to store hours |
Customer experience | Convenient, easy price comparison | Hands-on, personal service, immediate ownership |
Product selection | Vast, few space limits | Limited by shelf and floor space |
Best for | Wide reach and lower overhead | Products people want to see, touch or take home now |
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eCommerce vs. retail: the brick and mortar advantage
Despite the rise of online shopping, there's a significant advantage to maintaining a brick-and-mortar presence. Physical stores offer unique benefits that can enhance both business performance and customer satisfaction, leading to both sales and repeat customers. These include:
Personal touch: In-store interactions allow for personalized service, which can lead to stronger customer relationships and loyalty.
Immediate gratification: Customers can leave with their purchases immediately, satisfying the desire for instant ownership.
Sensory experience: The ability to see, touch and try products can increase consumer confidence in their purchase decisions.
While eCommerce is often highlighted for its convenience, physical stores also provide conveniences that are hard to replicate online:
Location: Strategically placed stores can attract foot traffic and impulse buys.
In-person support: Immediate assistance from staff can resolve issues quickly and improve the overall shopping experience.
Community presence: Stores contribute to local economies and can become integral parts of communities.
eCommerce vs. retail: the eCommerce advantage
The rise of the internet has ushered in a new wave of commerce—eCommerce—that allows businesses to extend their reach far beyond local boundaries. Starting an eCommerce business opens up a world of opportunities, with advantages that traditional retail simply cannot match.
Wix supports global and omnichannel eCommerce with multilingual storefronts, multi-currency payments, marketplace and social selling, mobile apps and integrated point-of-sale systems for online and offline sales.
Wider reach: With an online store, your business can attract customers from around the globe, not just those within a certain radius.
Cost saving: Operating online can significantly reduce the overhead costs associated with physical stores, such as rent and utilities.
24/7 availability: Ecommerce platforms are always open, giving customers the freedom to shop at their convenience, any time of day or night.
Learn more: eCommerce advantages and disadvantages
Shopping online is not just beneficial for businesses—it's also incredibly convenient for customers:
Easy access: Consumers can shop from the comfort of their own homes without traveling to a store. Create an eCommerce website to give potential customers 24/7 access to your products.
Vast selection: Online stores can offer a wider array of products than physical stores due to fewer space constraints.
Comparative shopping: Customers can easily compare prices and products from different vendors to find the best deals.
Learn more: How to start an online store
Retail vs. eCommerce and which to choose for your business
Choosing the right sales model for your business—whether to invest in a brick-and-mortar store, an eCommerce platform or both—is a decision that requires careful consideration of various factors. Here's a guide to some of them to help you weigh your options and determine which works best for achieving your business goals.
Target market: Consider where your customers are most likely to shop. Are they seeking the in-person experience or the convenience of online shopping?
Product type: Some products, particularly those that customers prefer to see or try on, may be better suited for retail. Others can be easily sold online.
Costs: Evaluate the start-up and ongoing costs associated with each model. Retail may require more significant upfront investment, while eCommerce can be more cost-effective.
Market analysis: Research consumer behavior and market trends to understand where your products fit best.
Competition: Look at what your competitors are doing and where you might have an advantage.
Brand experience: Decide how you want customers to interact with your brand and which model best delivers that experience.
Many businesses do not pick one and instead sell across both at once. Running every channel where your customers already shop is the idea behind extended commerce, which pairs a physical presence with an online store and other sales channels.
As businesses expand across websites, mobile apps and other digital experiences, many also explore what is headless commerce to gain more flexibility over the customer experience.
Learn more: eCommerce vs brick and mortar
The future of retail and eCommerce
As we look ahead, the landscape of retail and eCommerce is set for continued evolution and growth. Innovations in technology and shifts in consumer behavior are likely to shape the way businesses sell and customers buy. Understanding potential trends can help you stay ahead of the curve when it comes to selling.
Technological advancements: Emerging technologies like augmented reality and AI could transform the shopping experience both online and in-store.
Consumer expectations: As consumers become more tech-savvy, their expectations for convenience, personalization and service will increase.
Sustainability: Eco-consciousness is on the rise, potentially impacting purchasing decisions and driving demand for sustainable business practices.
eCommerce vs. retail FAQ
Is Amazon considered retail or eCommerce?
Amazon is primarily known as an eCommerce giant due to its vast online presence. However, with its acquisition of Whole Foods and the launch of Amazon Go stores, it also has a growing brick-and-mortar footprint.
Can businesses benefit from retail and eCommerce?
Yes, adopting an omnichannel approach that includes both retail and ecommerce can provide a rounded sales and customer experience, leveraging the strengths of each model.
