Logistics

Since the advent of technology, most business is conducted online at the comfort of a consumer’s sitting room. Consumers search for the information about the product or service they are interested in buying online, order for the product in stores operating via the internet and wait for it to be delivered. However, such products need evaluation before they can be purchased thus locations are still important.

Products, such as vehicles, furniture, clothes and other appliances need a customer to see and evaluate them before making the purchase. Moreover, physical locations provide the consumer with an opportunity to touch, feel and try the products on sale (Kotler et al., 2010). Online stores are opening physical stores in the densely populated urban areas, for instance Target is opening up stores in urban areas while closing those in the suburban areas thereby moving closer to the consumers. Amazon also decided to launch a physical store in Manhattan, close to the Empire State Building due to the traffic of people in the area. 

It is also important for online stores to first understand consumer preferences and buying specifications before establishing a physical store. For instance, Amazon, in order to ensure that customers get the festivity feel, they have decided to launch physical stores. Department stores also offer lenient credit terms that make them attractive to consumers (Decandia et al, 2007). Moreover, the state an online store wants to set up shop is important for taxation considerations. Affordability of the location to establish a physical store should also be considered, not only for the business but also for employees and customers, for instance does the place have a free parking (Grewal, Iyer & Levy, 2004).

Further, the management should consider the safety and prestige of the location. The area should be well lit and should put into consideration the wealthy clients as well. Establishing physical stores has seen consumers move freely between online and physical stores thereby creating convenience.

 

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