As technology improves and the world moves towards and online market, there are plenty of bricks and motar businesses opening up e-commerce stores to enable their customers to purchase products online. The cost of running a physical store is also skyrocketing these days and most local shops find it more profitable to convert to a complete online based business. For example your local lighting store selling lights for homes can easily close down and move to a complete online business and save thousands in rent every month and still offer the same range of products to their customers.
As business move to the online market, there is one negative effect which can start to impact sales. By moving online, businesses lose their physical presence and lose their ‘local’ customer base. ‘local’ customer basses can be extremely important especially if a business thrives on return sales from their ‘local’ customers.
Generally, people prefer to make purchase or buy services from a business that is ‘located’ close to them as it provides a sense of security. In simple terms, would you buy an expensive item for example a ‘television’ from an online store located in your city or would you buy it from a neighbouring city located 300 kms away if the price is exactly the same? In fact, you would probably buy from the online store located in your city even if the price is about 10% more because you know that if something goes wrong, you can always take the ‘television’ back to the store in your city for a fix or refund.
Now the question is, how do you make your online store show a presence to its ‘local customers’ while still maintaining sales to its distant customers. At the end of the day an online store’s goal is to look big and nationwide while still maximising its sales to the local customers in its city. I mean why not attract local customers as it is much easier to make local sales? It is an opportunity that every business to take advantage of.