Online Shop
An online shop is a website where retailers sell goods or services directly to consumers, handling everything from product presentation to checkout digitally.
Definition
An online shop, also referred to as an eShop or eCommerce system, is a website through which a retailer sells products or services directly to consumers. Buyers can browse the assortment, get product information, and complete the purchase through an electronic checkout. Most online shops sell physical goods, but digital products such as software, music, or eBooks are sold the same way.
Many retailers don’t treat their online shop and physical stores as separate channels, but as one connected system, usually coordinated by an Order Management System (OMS), letting consumers move between them depending on what’s more convenient in the moment.
Online shop vs. physical stores
Advantages
- Lower operating costs: retailers can operate with a smaller physical footprint (or none at all) and typically need less staff than an equivalent-sized store
- No opening hours: consumers can shop whenever it suits them, not just during store hours
- Simpler, more convenient purchase process for the consumer overall
Disadvantages
- No personal advice: there's no salesperson to answer questions or guide the decision in the moment
- Limited product presentation: even high-quality images and detailed descriptions can't fully replace physically seeing or trying a product
- Higher return rates: the lack of direct contact with the product before purchase is one of the main drivers of returns in online retail specifically
Connecting online and stores
Typical models that connect both channels:
- Click-and-collect: buy online, pick up in store
- Click-and-reserve: reserve online, pay and collect in store
- Click-and-return: return an online order in a physical store
- Click-and-meet: book an in-store appointment for personal advice
Making these models work reliably requires accurate, shared inventory visibility between the online shop and every store location. Otherwise the online shop ends up promising availability that the connected stores can't actually back up. Availability and Promising prevents this by only showing delivery and pickup options the network can actually fulfill. Done well, this helps retailers maximize conversions and sales, because consumers can rely on what the online shop tells them.