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Five MORE Differences 
Between Offline and 
Online Stores 
Charles E. Crouch 
© Charles Crouch 2004-14
A short review of Part 1: 
Photo: Microsoft
While we’ve been building offline 
stores for thousands of years... 
Fast Food Restaurant, Pompeii, 79 AD 
Online stores a...
When going online, we find that things are 
different. In part one we saw five ways 
offline and online stores are not the...
Location 
Offline stores have a physical location that 
requires customer commitment in time 
and effort to go there, maki...
Construction 
Offline stores occupy physical spaces that require 
time, money and space to construct. Modifications 
are c...
Size 
Offline stores must be large enough for the 
merchandise, staff, customers, and inventory. 
Online stores are sized ...
Presentation 
All merchants must display their offering to 
attract customers and encourage them to buy. In 
offline store...
Personnel 
Offline stores must hire, 
train and manage staff for 
face-to-face service. 
Online stores also use 
staff to ...
Here are five MORE ways 
offline and online stores differ 
Data 
Fulfillment 
Payment 
Security 
Regulation 
Photo: C. Cro...
Photo: C. Crouch 
Offline stores get valuable customer data through 
personal contact. The feedback is immediate and 
foll...
Data 
Online stores can gather vast amounts of data 
about their customers, often in real time. 
can be used to provide a ...
Fulfillment 
Offline stores must deal with 
physical goods requiring: 
• storage in good condition 
• attractive display 
...
Fulfillment 
Like offline, online stores must attractively display their 
goods, but using a screen interface. Firms selli...
Volatility 
Since online stores are open 24/7, they can be subject 
to wide swings in order levels. This problem is 
compo...
Payment 
Offline stores receive payment in several ways, 
cash and credit cards being very popular. Because 
sales staff c...
Payment 
Online stores frequently accept payments by credit 
card. Because the physical card is not present and 
all infor...
Payment 
With the growth of mobile, new 
payment systems are being 
introduced that combine ease of 
use with increased se...
Security 
Offline stores use 
physical means such 
as guards, tags and 
alarms to protect 
both goods and the 
store itsel...
Security 
Online firms may have to protect warehouses, 
but the bigger risk comes from the complex 
technology they use. E...
Regulation 
Offline stores are regulated by the body of 
laws and regulations which are applicable in 
their physical loca...
Regulation 
Sales 
HQ 
Prod. 
Develop. 
Phone 
Test 
R&D 
Online stores exist in a more fragmented virtual 
world. It is n...
Putting it All Together 
Respect the differences between 
offline and online stores 
Use them to your advantage 
Keep your...
Other Presentations 
on SlideShare 
Photo: C. Crouch
Questions Comments and Suggestions? 
Charles Crouch 
info@charlescrouch.com 
CharlesECrouch 
www.charlescrouch.com 
Photo:...
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Five MORE Differences Between Offline and Online Stores

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When moving online, businesses quickly discover the rules are different. This presentation discusses five more reasons why offline and online businesses are different: data, fulfillment, payment, security and regulation. A brief summary is given from part one, Five differences Between Offline and Online Stores

Published in: Business
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Five MORE Differences Between Offline and Online Stores

  1. 1. Five MORE Differences Between Offline and Online Stores Charles E. Crouch © Charles Crouch 2004-14
  2. 2. A short review of Part 1: Photo: Microsoft
  3. 3. While we’ve been building offline stores for thousands of years... Fast Food Restaurant, Pompeii, 79 AD Online stores are barely 20 years old! Dell, circa 1996 Images: C. Crouch, telegraph.co.uk
  4. 4. When going online, we find that things are different. In part one we saw five ways offline and online stores are not the same: Location Construction Size Presentation Personnel Photo: C. Crouch
  5. 5. Location Offline stores have a physical location that requires customer commitment in time and effort to go there, making them more likely to buy. Existing virtually where competitors are only a click away, online stores must work harder to acquire committed customers. Photo: iStockPhoto
  6. 6. Construction Offline stores occupy physical spaces that require time, money and space to construct. Modifications are costly and done infrequently. Since it has no physical presence, an online store can be quickly built and new features easily added. However, skilled people are required to construct both store types. Photo: iStockPhoto
  7. 7. Size Offline stores must be large enough for the merchandise, staff, customers, and inventory. Online stores are sized by bandwidth, processing power, and data storage. It is easier and faster to add size to an online store. Photo: C. Crouch
  8. 8. Presentation All merchants must display their offering to attract customers and encourage them to buy. In offline stores customers can use all their senses while making a purchasing decision. For an online merchant the main connection with your customers is through a screen, making the visual presentation even more important. Photo: C. Crouch
  9. 9. Personnel Offline stores must hire, train and manage staff for face-to-face service. Online stores also use staff to provide a pleasant experience, but they can work virtually from all over the world. In both cases staff require ongoing management attention. Photo: C. Crouch
  10. 10. Here are five MORE ways offline and online stores differ Data Fulfillment Payment Security Regulation Photo: C. Crouch Photo: C. Crouch
  11. 11. Photo: C. Crouch Offline stores get valuable customer data through personal contact. The feedback is immediate and follow-up questions can be asked.
  12. 12. Data Online stores can gather vast amounts of data about their customers, often in real time. can be used to provide a customized experience for each visitor. However information overload is a frequent problem as too much uncoordinated data is available to make good Photo: Microsoft
  13. 13. Fulfillment Offline stores must deal with physical goods requiring: • storage in good condition • attractive display • pick, pack, & delivery • customer Photo: C. Crouch
  14. 14. Fulfillment Like offline, online stores must attractively display their goods, but using a screen interface. Firms selling physical goods often need a warehouse with the same issues of storage, picking, packing, shipping and returns. But online stores also must deal with...
  15. 15. Volatility Since online stores are open 24/7, they can be subject to wide swings in order levels. This problem is compounded when they offer little or no information on availability and make promises for prompt delivery which they cannot meet.
  16. 16. Payment Offline stores receive payment in several ways, cash and credit cards being very popular. Because sales staff can check the credit card and the person presenting it, the merchant’s exposure to fraud is limited. Photo: iStockPhoto
  17. 17. Payment Online stores frequently accept payments by credit card. Because the physical card is not present and all information is passed digitally, the possibility of fraud is increased, and higher processing fees are charged by card companies
  18. 18. Payment With the growth of mobile, new payment systems are being introduced that combine ease of use with increased security. These may be used in both offline and online stores.
  19. 19. Security Offline stores use physical means such as guards, tags and alarms to protect both goods and the store itself. Photo: C. Crouch
  20. 20. Security Online firms may have to protect warehouses, but the bigger risk comes from the complex technology they use. Exposed to attacks from around the world, this technology can fail. Much of the value in online firms is the data they contain, making theft easier and exposing companies to massive loss and public exposure. Photo: iStockPhoto
  21. 21. Regulation Offline stores are regulated by the body of laws and regulations which are applicable in their physical locations. In general these regulations will change slowly as governments and regulators usually act according to slower time frames. Photo: Microsoft
  22. 22. Regulation Sales HQ Prod. Develop. Phone Test R&D Online stores exist in a more fragmented virtual world. It is not clear who has jurisdiction over a firm which is split across many countries, often has no physical presence, and can change parts at frequently to meet changing conditions. Image: Ktrinko, Wikimedia
  23. 23. Putting it All Together Respect the differences between offline and online stores Use them to your advantage Keep your customers’ needs at the top of your store criteria Photo: iStockPhoto
  24. 24. Other Presentations on SlideShare Photo: C. Crouch
  25. 25. Questions Comments and Suggestions? Charles Crouch info@charlescrouch.com CharlesECrouch www.charlescrouch.com Photo: iStockPhoto

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