Something that you have likely noticed in the last few years is that our high streets and malls are dying. What used to be busy places that people would spend hours hanging out with is now down to the odd store and an active food court that has more visitors than any of the nearby shops.

The amount of in-store shops has been on a steady decline for the best part of the decade and many people presume this is simply due to the companies going under and no longer existing at all. This of course is not the case, though some have unfortunately failed, many of the businesses that have removed themselves from our streets are actually thriving.

Something that you may not know is that a lot of these businesses have instead chosen to operate from an online store and it is predicted that by 2030, all of our stores will operate online. But why exactly are these businesses choosing to close up shop and move online? Here is an in-depth look into why so many stores are moving online.

The Costs of Renting Are Expensive

One of the main reasons that people are choosing to ditch in-store operations in favor of the internet is because renting online space can be expensive.

If you want to have a successful business, you need to open your store in an area where other shops are operating. Picking the right location is a must-have so that people enter your shop, but choosing to rent in a popular retail area can be incredibly expensive.

As well as having to rent your retail space, you have to think about paying for things like gas and electricity, which can really eat up a lot of money, especially as the colder months are approaching.

People forget just how expensive setting up a store is too. You can’t just stack boxes of your products around your shop, you need to make it look presentable. This means buying racks and shelves for your items, as well as mannequins to display products if you have a clothing store.

You also need to cover the cost of important items such as tills and bags for your products, so your initial cost of setting up a business is extremely expensive. When you move online, you don’t have to deal with all of these costs. The only costs you really have to worry about are the cost of setting up your website and the cost of shipping your products, which your customers cover within their purchases, so there is a lot more profit to be made when you move online.

Drop-Shipping Has Made Operating Online Easy

Something that sellers used to worry about in the past is the process of sourcing, storing and delivering their products to their customers, as trying to do it successfully can have a few teething problems to start.

However, since the introduction of drop shipping agents, this process has become a lot more straightforward. For those of you that are not familiar with what a dropshipping agent is, to describe it simply, a drop shipping agent takes care of your order from the moment it is ordered. So they deal with getting the product, quality control and shipping the product. To learn exactly what a dropshipping agent is, we recommend that you do further research, as this is something you should really know about if you are considering moving your own business online.

People Prefer to Shop Online

As previously stated, owning an in-store business can be expensive. It becomes even more expensive when nobody comes into your store and you are unable to cover the costs.

People have just started to become much more used to shopping online and so they do not see the point in travelling out in order to get a product that they could have the next day, thanks to next day delivery. If nobody wants to shop in person, is it a good idea to keep your in-person store open to the general public?

The pandemic has only made this worse, as people were told to stay at home and purchase as many items as they can online so that they don’t have to come in unnecessary contact with people during the dangerous time. Though we are steadily moving away from the events of the pandemic, there are still some things that have stuck with us. One of the things that stuck was abandoning in-person shopping in favor of shopping online.

We all just became very familiar with the convenience of being able to shop online and while the world is still not completely safe, it looks as though people are going to continue to stick with online shopping.

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