Key points in this article:
- Ecommerce starts with a low investment (from $24.90/month with WiziShop), unlike the heavy fixed costs of physical stores.
- An online store offers international reach, whereas a physical store is limited to its geographical area.
- Physical stores retain the advantage of sensory experience and human connection, keys to loyalty.
- Each model has its constraints: competition and logistics online, timetables and high investments for physical stores.
- The trend is “phygital”: combining ecommerce and brick-and-mortar stores to maximize sales.
Opening a retail business in 2025 is, above all, a strategic choice: should you focus on digital with an online store or invest in traditional brick-and-mortar stores?
Each option represents a different investment, with its own strengths and limitations.
On the one hand, the web allows you to reach a global audience at a lower cost.
On the other hand, physical stores retain the advantage of the sensory experience and human connection.
So, which model should you choose to grow your business this year?
Learn all about the pros and cons each option can provide retailers and shoppers alike in this article!
Online stores
Advantages of online stores
- Low start-up costs (hosting, CMS, domain name much cheaper than premises)
Among the many advantages of ecommerce, the first is obvious. Forget about rent, refurbishment, window displays, and fixed costs that accumulate before you’ve even earned a dollar. On the internet, your expenses are focused on the essentials.
With the WiziShop solution, you can open your online store for $24.90 per month, after choosing a domain name included in your subscription!
- 24/7 accessibility, no time constraints
A customer can discover your business’s products when shopping in the middle of the night on their mobile phone and finalize their order during their lunch break on their computer, allowing the ecommerce model to provide extra convenience. The key is to boost the UX of your online store everywhere for improved shopping experiences!
- International reach: opening up to new customers beyond your geographical area
Whereas a physical store depends mainly on the location’s foot traffic and local word of mouth, ecommerce allows you to reach an audience you would never have been able to reach otherwise. But don’t panic—it’s easy to set up!
Solutions such as Weglot, DeepL, and WiziShop can help you automate your ecommerce business’s internationalization.
- Automation
With the tools available to retailers today, you can program email campaigns that welcome each new customer, follow up on abandoned shopping carts, or offer targeted promotions at the right time. The best strategy is to set up your mailings in advance according to a well-defined reverse schedule.
Cross-selling, upselling, and product recommendations also happen automatically, a natural fluidity that helps consolidate the appeal of online sales for shoppers in various types of ecommerce.
- Social proof available immediately (customer reviews, ratings, testimonials)
Another major advantage of online shopping is social proof. Before making a purchase, consumers want reassurance. They want to know if the product delivers on its promises, if the quality is there, and if other customers have been satisfied.
According to statistics from a WiziShop ecommerce study, customer reviews influence online buyers by more than 56.2%, the #1 trust signal!
This is why it’s advantageous to have customer reviews, ratings, and testimonials directly accessible on the product page like the Chewy website.
- Ability to sell digital products (ebooks, online courses, music, etc.) with instant delivery
Whereas a traditional store is limited to physical goods, an online store opens the door to a world of intangible offerings: ebooks, online classes, software, music, podcasts, video on demand, subscriptions, and more. The unique feature of these products is that they require no management of inventory storage, logistics, or shipping.
WiziShop, Podia, and Etsy facilitate the sale of downloadable, customizable products, and online training courses in all fields.
Disadvantages of online stores
- Often fierce global competition
On the internet, you’re not only competing with the store next door, but with thousands, sometimes millions of businesses selling products similar to yours. Some retailers have colossal resources, such as Amazon and Temu, while others offer unbeatable prices thanks to their huge volumes.
- Dependence on SEO, SEA, and social media to generate traffic
Another major disadvantage is the dependence on organic search engine optimization, paid search engine optimization, and social media to attract traffic. Unlike a physical store that benefits from foot traffic or local reputation, an online retail store simply does not exist if shoppers do not visit it online.
- Complex logistics management (inventory, shipping, returns)
Whereas a physical store can deliver products directly to customers, an online store must plan ahead for storage, packaging, order preparation, and delivery.
Here is the list of the main reasons for shopping cart abandonment in 2025 according to Baymard Institute, many of which are related to ecommerce logistics.
- Remote after-sales service is more difficult to manage
In a physical store, a dissatisfied customer can come directly to you, express their problem, and leave with an immediate solution. Online, everything is done through email exchanges, forms, or phone calls.
- Variable costs on each sale (payment gateways, marketplace commissions)
Each transaction made via a payment gateway, such as PayPal or Stripe, generates a commission, usually in the range of 2 to 3%. If you sell on a marketplace, the bill is even higher: for example, Amazon charges a percentage on each product sold, sometimes with additional fixed fees, ranging from 3% to 45% plus $0.99 per item sold (source: Amazon).
In summary:
✅ Advantages of online stores
- 💸 Low start-up costs (no physical stores, no fixed costs, a website from $24.90/month with WiziShop)
- 🕒 24/7 accessibility: Your products and services are available everywhere, all the time.
- 🌐 International reach: Selling beyond your geographical area worldwide becomes a major lever.
- 🤖 Automation: Emails, upsell, dynamic pricing… the online store works even without you.
- 📁 Sale of physical and digital products: Ebooks, online courses, subscriptions, etc. can be delivered instantly, unlike physical stores.
⚠️ Disadvantages of online stores
- 🌍 Global competition between websites and online stores
- 📉 Dependence on data and digital marketing
- 📦 Complex logistics compared to traditional businesses
- 📞 Remotely managed customer service
- 💳 Commissions on each sale
Brick-and-mortar stores
Advantages of brick-and-mortar stores
- Unique sensory experience: see, touch, test before buying
Customers can see products, touch them, feel their texture, try on a size, compare colors, or even test how they work and learn more about them before making a decision with physical commerce locations.
Retail brands can play on customers’ senses, as is the case with LUSH cosmetics brick-and-mortar stores, which have made olfactory marketing a trademark: on the street, shoppers can recognize the scent from the brand’s inventory from dozens of feet away.
- Direct human interaction, a source of loyalty
Many customers return to a brick-and-mortar store because they appreciate the attention they receive from these businesses, the warm tone of the storekeeper, or the little touches and experiences the store will provide that make all the difference, as seen in LEGO retail stores.
@tj.bricky LEGO Store grand opening was a blast! Definitely long overdue in this location. Loved the fun activities and seeing all the cool builds by ULUG! … #lego #legostore #grandopening #ulug #legocommunity #legofan #legotok #legotiktok #bricktok \u266c A happy song perfect for the opening(1601429) - Kids Sound
- Competition limited to the immediate geographic area
In a local environment, a good reputation, positive word of mouth, and well-developed visibility (signage, flyers, participation in neighborhood events) can be enough to build a loyal and regular customer base.
According to a 2021 Nielsen study, 88% of consumers trust recommendations from those around them more than other channels when making purchases.
- Impulse sales made easier (unplanned in-store purchases)
A customer may walk into a physical commerce shop to purchase a specific item and walk out with several additional products, enticed by a window display, the ambiance, a shelf promotion, or even a simple piece of advice from the sales associate.
In brick-and-mortar retail stores, who hasn’t fallen for little candies at the supermarket checkout, or special low-cost finds in the dollar section at Target?
@meili_zzz New Halloween items in Target’s bullseye playground section!!\ud83e\udd29\ud83e\udde1 #target #targetfinds #targetdollarspot #targethaul #targetrun @target \u266c original sound - Meili Zhang
- No delivery delays or fees: Buy now and take with you
A physical commerce store also allows shoppers to avoid waiting and additional delivery fees. Buying on-site means fulfillment is immediate you can take your product home immediately.
Disadvantages of brick-and-mortar stores
- High fixed expenses (rent, layout, utilities, salaries)
Opening a brick-and-mortar store involves incurring high fixed expenses. Here is a comprehensive list of basic expenses for a physical store:
| Expenses | Approximate costs | Frequency |
|---|---|---|
| Premises rent | $1,000 to $5,000 per month (more expensive in the city center) | Monthly |
| Development work | $10,000 to $50,000 (depending on the condition of the premises and compliance with standards) | On time (opening) |
| Decorations & furniture | $5,000 to $20,000 (displays, counter, booths, chairs) | On time |
| Equipment (cash register, IT, security) | $3,000 to $10,000 | On time |
| Fixed costs (water, electricity, internet, insurance) | $500 to $1,500 per month | Monthly |
| Salary & social security contributions | $1,800 to $2,500 per employee per month | Monthly |
| Initial stock of goods | $5,000 to $30,000 (based on sector) | On time (at launch, then renewal) |
- Limited hours, less flexibility
A physical store is only accessible during fixed hours: opening hours, evening closing, and public holidays must be taken into account.
A customer who walks past the window after closing will have to return... if they don’t choose to buy directly online in the meantime.
- Business limited to the local geographic area
The catchment area is also a limitation: a physical store only reaches customers located in the nearby geographic area.
In summary:
✅ Advantages of brick-and-mortar stores
- 🛍️ Unique sensory experience: Seeing, touching, testing products before purchasing, a strong point compared to ecommerce.
- 🤝 Direct human contact: Welcome, personalized advice, loyalty, a practice still highly appreciated in many brands.
- 📍 Reduced local competition: Opportunity to stand out through reputation, proximity, and service strategy.
- 💡 Impulse sales made easy: Customers often leave with more than expected.
- ⚡️ Immediate purchase: No delays or delivery costs, product collected directly from the store.
- 🔄 Simplified returns: Immediate exchange or refund, an advantage that some brands are highlighting compared to ecommerce sites.
⚠️ Disadvantages of brick-and-mortar stores
- 💸 High fixed costs compared to online outlets
- ⏰ Limited hours, unlike the permanent availability of the web
- 🌍 Business limited to the brand’s geographical area
- 🏗️ Heavy initial investments
- 👥 Dependence on the physical flow of visitors
How do you choose between online and brick-and-mortar stores?
Products
Some items require a sensory experience: fashion, cosmetics, home decor, food. Your customers want to see, touch, smell, and try them on. In these cases, physical stores have a clear advantage, as they reassure and build loyalty.
Other products, however, lend themselves perfectly to the web: accessories, books, electronics, and digital content.
Resources
A brick-and-mortar store requires significant investment. We’re talking several thousand, sometimes tens of thousands of dollars.
Conversely, you can launch an ecommerce business and start an online boutique with a few hundred dollars per year for hosting, a CMS, and a domain name.
But above all, think about the team. An ecommerce business can operate alone or with a few service providers thanks to automation. A physical store, on the other hand, requires a constant presence: checkout, restocking, reception, and maintenance.
Target
Knowing your target audience means knowing where to focus your efforts. Even with the best product and a solid budget, if you choose the wrong channel, you risk missing out on your market.
Your choice should be based on a simple reasoning: where do your customers buy and how do they like to consume? Adapting to their habits will maximize your chances of success.
Objectives
If you’re aiming for rapid growth, ecommerce is the logical choice. Launching an online store takes little time, costs remain affordable, and scale is virtually unlimited.
If your brand’s priority is local roots, a physical store remains the solution.
In summary, keep in mind that today, according to eMarketer, ecommerce will represent 20.5% of total global retail sales in 2025, up from 19.9% in 2024, with growth continuing through 2028.
According to the same source, global retail ecommerce sales will reach $6.419 trillion in 2025, with year-on-year growth of +6.8%.
For your project, everything depends on your ambitions, but know that an online presence is essential to reassure customers: an Instagram account and a presence on Google Business are the minimum, and selling online is (almost) a necessity to survive over time.
More and more businesses are opting for the synergy of both models: a brick-and-mortar store for the experience and proximity and an ecommerce website to expand their customer base and sell non-stop.
| Criterion | Ecommerce | Brick and mortar |
|---|---|---|
| Products | - Ideal for standardized items (books, electronics, accessories, digital content) - 24/7 availability and fast delivery | - Asset for sensory products (fashion, cosmetics, decor, food) - Reassured by direct testing |
| Resources | - Reduced investments (CMS, hosting, domain name) - Requires digital marketing skills | - Heavy investments (premises, development, stock, costs) - Relies on a team and a constant presence |
| Target | - Broad targeting, beyond the local area - Customers looking for convenience and speed | - Local clientele attached to human contact - Depends on traffic and word of mouth |
| Objectives | - Fast growth, easy to go live, virtually unlimited scale | - Strong local roots, human connection, progressive stability |
FAQ
Can businesses combine ecommerce and brick-and-mortar stores?
Yes, it’s the “phygital” model: online visibility + in-store experience = more sales.
Can you test an online business before opening a physical store?
Yes, and it’s even recommended: ecommerce allows you to validate your intuition and your brand’s products with fewer risks.
Is ecommerce necessarily more profitable for retailers?
It costs less to launch, but it requires regular marketing investments to exist in the face of competition.
Do you need a lot of technical skills to start an ecommerce business?
Not necessarily. CMSs like WiziShop make setup simple, but a minimum knowledge of digital marketing is essential. (Don’t panic: the solution offers comprehensive training!)
Can a physical store attract more customers through the web?
Yes: Google Business Profile, social networks, SEO, and local online advertising are powerful levers for generating in-store traffic for retailers.
