Four Reasons Why Sellers Close Their Brick-and-Mortar Stores

A survey by Paxel and Media Buffet reveals that relying solely on brick-and-mortar stores is no longer relevant. 66% of respondents with physical stores reported that their online sales revenue exceeded their physical store revenue. The survey highlights four reasons why sellers are closing their physical stores. The primary reason, cited by 67%, is that online sales are more profitable than physical store sales.

The ease of buying and selling on e-commerce platforms has eliminated geographical limitations between sellers and buyers, allowing sellers to reach a wider potential customer base. The second reason, cited by 48% of sellers, is keeping up with the times. Lower overhead costs were another reason, cited by 47%. Finally, 15% of sellers found selling offline more difficult.

This survey was conducted between January and June 2019, involving 535 respondents. Respondents were categorized into three groups: 33% were new businesses operating for less than a year (Beginner Sellers), 33% had been in business for one to two years (Experienced Sellers), and 34% had been in business for more than two years (Veteran Sellers).