Physical Store vs Online Store

Tag: start-ups

Physical Store vs Online Store


Physical Store vs Online Store

One fine morning, you wake up and you stumble upon a business idea that you instantaneously believe in and you think it will work great in the marketplace. You start working on your business plan and then you stop at a critical juncture, you start evaluating the feasibility and costs of starting a physical store vis a vis an online store.

Let’s look at the scenarios and help you take a wise decision.

When you decide to open a physical store, there are costs that need to be borne in terms of infrastructure, furniture, labor, etc.…. Furthermore, you must invest in the security of the store, the maintenance of the store, etc.… The costs involved in setting up and operating a physical store to sell your products are very high to begin with, not to mention you would have to indulge in some outdoor marketing to attract customers to your store. If you think you don’t need to do marketing, then your store better be in a good location to cash in on the automatic visibility. But, a good location comes at a cost.

Sometimes, the rent of the store will be abysmally high, due to locational advantages. Oh, last but not the least, there are regulatory clearances from the civic body & government that needs to be sought, before you start operating a physical store. In many countries, receiving regulatory clearances is not easy as sometimes, the process is cumbersome and tedious.

Therefore, purely from a short to medium term, it certainly doesn’t make sense to open a Physical Store, because it will take a while before you realize your return on investment. Hence, what’s the other option? Online, right!

It is 2017, the peak of the e-commerce revolution, the possibilities are immense. You don’t need to worry about location, physical security and outdoor marketing, to start shop. Sure, these elements exist in the online space as well but it is easier to deal with. To start up in the online space, you don’t particularly need any regulatory clearances. You would just need a few computers and a good internet connection.

However, you must ensure that you have adequate stock to service your orders. It is imperative to have a good supply chain and logistics system in place, because if the first 100 costumers, like your products, chances are that your orders will increase in a very short span of time, aided by digital marketing.

Having said that, the most important factor is the experience you provide to customers, when they land on your online store. The UX/UI (User Experience/User Interface) of your website needs to be top notch. Right from the homepage to the payment gateway, the amount of time that a customer will spend on your online, he should be blown away by the experience. The UX/UI will be your single most important driving factor for your online store, initially.

Contact us and we will be able to guide you on setting up a viable online business, apart from providing a seamless payment experience for your online store. Sign up for a free demo to understand the value of our payments solutions.

How’s Fintech Accelerating the Digital India Vision!

How’s Fintech Accelerating the Digital India Vision!

Digital India has been at the very heart of Prime Minister Narendra Modi’s vision and the Fintech Industry has been at the forefront of that vision by enabling technologies that fundamentally change the way Indians transact in the new economy.  The statistics point to a large scale Fintech movement taking shape in India:

  • The Indian Fintech industry is poised to grow to $2.4 Billion by 2020.
  • The total transaction value of the entire Indian Fintech industry is forecasted to reach $73 Billion in 2020 growing at a CAGR of 22%

The tremendous talent advantage that India has coupled with the cost benefit provides a lucrative proposition for Fintech start-ups to sprout in India or to have bases in India. The increasing adoption of Fintech technologies by the large base of Indian consumers has positioned India as an attractive market worldwide. The primary players of any Fintech ecosystem include the following

  • Government & Regulators
  • Investors
  • Financial Institutions
  • Incubators, Accelerators, Innovation Hubs
  • Start-ups
  • Tech Vendors

For any upcoming industry to thrive in a vast and complex country like India there needs to be enough impetus from the government in terms of policies, infrastructure and taxes to build confidence among entrepreneurs.

In a diverse economy such as India, a wide range of Fintech products and services are required to cover the needs of a diverse demographic. Fortunately, India has the entire range of new age Fintech products and services, be it insurance financial services marketplaces, payment gateways, mobile wallets and payment aggregators.

As a testimony to the Indian market, PayTabs has recently started operations in India and you can experience the full scale of PayTabs’ global payment processor for receiving international payments by signing up for a free demo. We are a leading enabler in connecting Indian merchants to buyers across the world.

Data Sources: KPMG India Fintech Report