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Comparing Brick-and-Mortar and Online Business Models

Posted on Dec 12, 2025 in Physical Activity and Sports Sciences

Comparison Between Brick-and-Mortar Model and Online Business Model:

Basis of Comparison	Brick-and-Mortar Model	Online Business Model (E-Business)
Meaning	Traditional business with a physical store where customers visit to buy goods/services.	Business conducted over the internet through websites or apps without a physical store.
Presence	Physical presence (shops, offices, showrooms).	Virtual presence (website, e-commerce platform).
Customer Interaction	Face-to-face interaction with customers.	Interaction through digital means like chat, email, or call.
Operating Hours	Limited to business hours (e.g., 10 AM – 8 PM).	Available 24/7; customers can shop anytime.
Cost Structure	Higher fixed costs – rent, utilities, staff salaries.	Lower fixed costs – mainly website maintenance and delivery logistics.
Reach	Limited to a local or regional area.	Global reach – can attract customers worldwide.
Inventory Management	Requires physical storage space for inventory.	Can use drop-shipping or centralized warehouses.
Marketing	Traditional methods – print ads, banners, local promotions.	Digital marketing – social media, SEO, email campaigns.
Customer Experience	Tangible – customers can touch, try, and feel products.	Intangible – relies on photos, videos, and reviews.
Examples	Reliance Smart, Big Bazaar, local retail shops.	Amazon, Flipkart, Myntra, Meesho.

Advantages of E-Auction (Electronic Auction):

Sr. No.	Advantages of E-Auction	Explanation
1	Transparency	All bids are visible online, ensuring fair competition and reducing chances of corruption or favoritism.
2	Wider Reach	Buyers and sellers from different locations can participate, increasing market reach and competition.
3	Cost-Effective	Reduces expenses related to physical auction setup, travel, and paperwork.
4	Time-Saving	The entire process is conducted online, saving time for both buyers and sellers.
5	Convenience	Participants can join from anywhere with internet access, making it easy and flexible.
6	Better Price Discovery	Competitive bidding often results in fair or higher prices for sellers and lower prices for buyers.
7	Efficient Record Keeping	All transactions and bids are recorded electronically, ensuring easy documentation and audit trail.
8	Reduced Human Intervention	Automated systems minimize manual errors and biases.
9	Environment Friendly	No need for paper, physical meetings, or travel, contributing to sustainability.
10	24/7 Accessibility	Some e-auction platforms allow bidding at any time, offering flexibility to global participants.

Feature	Traditional Commerce	E-Commerce (Electronic Commerce)
Transaction Medium	Physical location (stores, markets, offices) and face-to-face interaction.	Electronic network (Internet, websites, mobile apps).
Geographic Reach	Local or Regional; limited by physical proximity to the store.	Global; accessible to customers worldwide.
Operating Hours	Fixed business hours, limiting customer access.	24/7/365 availability, enabling anytime shopping.
Cost of Setup/Overhead	Higher; includes rent, utilities, physical inventory, and store staff salaries.	Lower; focuses on website development, hosting, and digital marketing; reduced need for physical storefronts.
Customer Interaction	Direct and personal; customers can see, touch, and try products.	Indirect (via chat, email, calls, or automated support); no physical inspection before purchase.
Transaction Processing	Manual (e.g., handling cash, physically swiping cards, paper receipts).	Automatic; transactions are processed digitally and instantly.
Delivery of Goods	Instant (customer leaves the store with the product).	Delayed (involves shipping and logistics, taking time from purchase to receipt).
Marketing	One-way or mass marketing (e.g., billboards, print ads, flyers).	Interactive and Personalized (e.g., SEO, social media, email marketing, targeted ads).
Scalability	Slower; requires physical expansion, new stores, and increased staff.	Rapid; relies on digital infrastructure, allowing quick expansion to new markets.