Brick and Mortar stores have been around for many years. It’s only in the past decade or so that the popularity of brick and mortar stores has begun to decline. With eCommerce becoming more and more convenient and popular, maybe one day, brick and mortar stores will be confined to the history books. It sounds like an absurd thought but let’s talk about some simple facts.
Covid has shown to the world just how important the internet is. Just how easy it is to use and how it never stops even with a raging virus and a pandemic in the way. Brick and mortar stores on the other hand had to close in lockdown. They couldn’t do business if they didn’t have a website. If you have a look you will see that the businesses that have increased in value over the last year, most of them are online-based. Whether it’s Amazon or Zoom. Most eCommerce businesses crushed it last year and did monumental sales figures. The same thing will probably happen again this year too.
Rent prices are going up every year, it’s getting harder and harder for brick and mortar stores. The minimum living wage is going up to $15 soon which for many small businesses is a real issue. They can’t afford that as it’s practically double the living wage now. Therefore, more employees will probably be laid off as things get tougher. Many small businesses will look to go online this year since it’s easier, cheaper, better long-term gains, a wider audience, and it reduces many overheads.
A small business nowadays can run quite easily from somebody’s house. Fulfillment centers exist so no need to worry about packing, the store and orders can be managed by a laptop or computer and there are plenty of Virtual Assistants all over the world who can help you with accounting, content, building the store, ads, etc. Is there any need then for actual employees?
The world is becoming more and more digitized. This is bad news for the employee because most businesses can survive without them. Car factories can utilize robots, warehouses can use robots, businesses can get more customers via a website, delivery in the future will be done via drones and robots, etc. You can increase the living wage all you want but we live in an era where actually employees are becoming less of a necessity and more of a hassle. You can get more done essentially with robots nowadays and they don’t need sick pay, holiday pay, lots of insurance, etc.
It’s the same with virtual assistants too. These are people who work for you via freelance. They are not your employees legally, they don’t need any sick pay or holiday pay, they can be laid off at any time and they are far easier to deal with. Oh, and they’re cheaper and if you get one in a different timezone, they can work whilst you sleep. Excellent and you can see why many companies prefer to use them over domestic employees.
Small Businesses Are In a Deep Hole
At this moment in time, many small businesses are in a deep deep hole. Covid has hit bad, the new election means they will receive less support, the wages for their employees will go up and rent is increasing. It is a battle for survival each day and let’s not forget that many were looted during this year’s riots.
Unfortunately, many small businesses will go under, and already many have. Not all small businesses can go online. Or can they?
A cafe is an example we will use. They need employees and a store to serve from right? Well, what if they could do this all a bit differently with a bit of help from the world of technology. They could focus more on home delivery takeouts, utilize local delivery bots and sell their food online for next-day delivery, etc. However, you may be thinking through what’s the point of that? Nobody goes into a cafe to get a coffee for tomorrow? They want it now. Well, this is where creativity comes in. Cafes can sell their own coffee beans online, recipe books, cups, mugs, etc. However, how about the edibles like cakes, etc. Well, that’s where home delivery and takeouts exist. You can get customers to order their food via your website or an app and then you can use a delivery service like Uber eats to deliver your food. The Uber eats employee isn’t your employee so no need to worry there. You can even cut costs by hiring freelance chefs.
Small businesses can really expand if they sell online. It is though a lot harder. Selling online requires different skills such as SEO, store design, ads, etc. Luckily an agency can help you out with this. If a small business wants to survive in the next ten or so years they need to get a website because that’s the only way they will be able to reach out to more potential customers. The internet is a bigger world. So big in fact that your business could be based in Fresno and you could have customers in Adelaide Australia.
Online eCommerce businesses are worth a lot more too and they are easier to sell when need be. Investors will be more interested in your business if it’s online and let’s face it, online is the future. You see the most valuable businesses nowadays they’re not focusing their main attention on their brick and mortar stores. It’s all about their websites now, especially after last year. Even Apple who is famed for its brick/mortar stores is focusing more on its website and online support.
In fact, we bet you in the next decade Apple will begin to close their stores. Maybe not the main ones like the one on 5th avenue or the one in Dubai but the smaller ones in malls. Things are just getting more and more expensive and with online logistics improving and profit margins increasing, it really is a no brainer for most businesses to go online.
Brick and mortar stores do spice up a neighbourhood and it is always a nice experience when shopping in them, but until this pandemic etc ends the route for most stores is slim. Bigger corporations may survive as they can afford it, but expect a lot of store closures soon. It just seems running a typical store nowadays is near enough impossible. Though let’s face it, the community feel these small businesses give locally is second to none.