Zum Inhalt springen
Personal, from the Hildesheim region
E-Commerce

Online Shop for Local Retailers: When It Pays Off

13 min read
OnlineshopE-CommerceEinzelhandelMittelstand

Should my shop sell online? Almost every local retailer asks this question, at the latest when walk-in custom fluctuates. The honest answer is: it depends. An online shop is not a sure-fire success and not the right move for every range. But the size of the market is clear: 79 percent (Bitkom) of internet users in Germany buy online regularly, almost every adult also uses a smartphone for such purchases – the share is around 90 percent (Bitkom) – and German e-commerce revenue was recently in the high double-digit billions (HDE). This article helps you decide soberly: when does an online shop pay off, which models exist from the simple showcase to the full shipping shop, and what really matters when it comes to effort, shipping and advice?

Does an online shop pay off? Three ways onlineShowcaseShow products,enquiry and pickuplow effortno shippingClick and CollectOrder online,pick up in storebridge to the storeno parcel shippingFull shipping shopOrder, pay,have it shippedwidest reachmore effortCheck: do the range, the effort and the margin fit?Speaks for itshippable productsgood margin per itemclear target groupSpeaks against itadvice-intensivehard to shipthin marginStart small firsttest part of the rangesettle the workflowthen expand79%buy online regularly (Bitkom)~70%cart abandonment rate (Baymard)0one-size-fits-all recipesShowcase | Click and Collect | shipping shop | start small, do the honest math

Key takeaways

  • An online shop does not pay off across the board – what matters is the range, margin, shippability and the honestly calculated effort.
  • There are several levels: a digital showcase, click and collect and the full shipping shop – not every shop needs the highest level.
  • For many local retailers, click and collect is the most sensible entry, because it combines online reach with the existing store.
  • Around 70 percent (Baymard) of shopping carts are abandoned – a simple, trustworthy ordering process is therefore decisive.
  • Starting small, settling the workflow and only then expanding protects against oversized solutions and unnecessary costs.

When an Online Shop Really Pays Off

Before talking about technology and design, there is a simple but often skipped question: does my range suit online selling at all? Some products almost sell themselves online, others live on advice, fitting or the in-store experience. The online share has been growing for years: more than half of consumers now shop online at least monthly (Bitkom). A specialist shop for special tools with clearly describable, shippable items has different prerequisites than an advisory business whose strength lies in the personal conversation. Suitability depends on four factors that should be gone through soberly.

The first factor is shippability. Can the product be sent safely, affordably and without great effort? Bulky, heavy or fragile goods make shipping expensive and complicated. The second factor is the margin. After deducting packaging, shipping, payment fees and returns, is there enough left? With thin margins, online selling can quickly become a loss-making business. The third factor is the advice intensity: products that need detailed explanation are harder to sell online, but can often be supported with good content.

The fourth factor is demand. Do people outside your store even search for your products? Here a sober look at search behaviour and competition helps. If all four factors are right, an online shop can be a valuable second pillar. If they are not, a lean solution such as a digital showcase is often more sensible than a full shipping shop. For us, this honest pre-check belongs at the start of every project – much like the question of whether a website relaunch pays off.

Speaks for an online shop

Easily shippable products, a sufficient margin per order, a clearly defined target group and recognizable demand beyond your own region. Then reach pays directly into revenue.

Rather speaks against it

Highly advice-intensive, bulky or perishable goods, thin margins and a range that lives on the in-store experience. Here a lean online presence is often the better way.

Three Models: From Showcase to Shipping Shop

Not every online shop is the same. Between a mere business card and a fully developed mail-order operation lie several sensible levels. The simplest is the digital showcase: you present your products attractively with images, descriptions and prices, without selling directly online. Prospects inform themselves, enquire or come by. This model is cheap, quickly implemented and ideal for advice-intensive ranges. It brings visibility without you having to deal with shipping and payment processing.

The second level is click and collect: customers order and pay online but pick up the goods in the store. This model combines the reach of the internet with the strength of the local business. It saves parcel shipping, brings people into the store where they often make further purchases, and lowers the hurdle for the first online step. For many local retailers, click and collect is the most economical entry, because it uses existing workflows and requires no logistics centre. Click-and-collect offerings have gained considerable importance in recent years and have become a standard for many shoppers (HDE).

The third level is the full shipping shop: customers order, pay and have the goods sent to them. This variant offers the widest reach, far beyond the region, but also demands the greatest effort for storage, packaging, shipping and returns. It pays off when range and margin are right and there is enough supra-regional demand. Which model suits your shop is best clarified in a personal conversation – often a staged path that begins with a small step makes sense.

ModelEffortSuits
Digital showcaseLow, no shippingAdvice-intensive ranges, first step
Click and collectMedium, no parcel shippingLocal retailers with a store
Full shipping shopHigher, with logisticsShippable goods, supra-regional demand
Marketplace in additionMedium to high, feesStandard products with price competition

Start small, then expand

You do not have to begin with the full shipping shop. It is often wiser to start with part of the range or with click and collect, settle the workflows and gather experience. What proves itself can be expanded in a targeted way later. This avoids an oversized solution that costs more than it brings in.

The Ordering Process Decides Revenue

Once the decision for a selling shop has been made, the quality of the ordering process decides success or failure. The numbers are clear: on average around 70 percent (Baymard) of customers abandon the purchase in the cart. The reasons are well researched and mostly homemade: unexpected extra costs at checkout, a forced customer account, an ordering path that is too long or complicated, missing payment methods or a lack of trust. A considerable share of abandonments is due solely to unexpected extra costs such as shipping and fees that become visible too late (Baymard). Each of these points can be fixed, and every improvement acts directly on revenue.

A good ordering process is short, clear and honest. Shipping costs and delivery time should be visible early, not only on the last page. A purchase as a guest must be possible without a forced account. The common payment methods should be offered so that no one leaves for lack of a suitable option. And the entire flow must work just as smoothly on the smartphone as on the computer, because over 60 percent (Statista) of web traffic today is mobile. How strongly the website's loading speed weighs in here is often underestimated: a slow page costs purchases in a shop too.

Trust is the invisible currency in online trade. A complete imprint, transparent shipping and return conditions, visible contact options and a professional appearance signal seriousness. For a local retailer this is a real advantage: the connection to a real store with an address and a face creates trust that pure online providers first have to build. You should make this local anchoring visible in the shop rather than hiding it.

  • Show shipping costs and delivery time early and clearly, not only at checkout
  • Allow purchase as a guest, no forced customer account
  • Offer common payment methods so that no one leaves for lack of an option
  • Keep the ordering process short and test it on the smartphone
  • Build trust through imprint, clear conditions and visible contact
  • Visibly emphasize the connection to the local store

Visibility: A Shop Alone Does Not Sell

A common misconception is: once the shop is online, customers will come by themselves. The opposite is the case. An online shop is like a store on a side street – it has to be found. This is exactly where it is decided whether the investment bears fruit. Since around 46 percent (Google) of all searches have local intent, findability is especially valuable for regional retailers. Organic search engine optimization ensures that your products and categories appear for matching searches. Good product texts, clear categories and a clean technical structure pay directly into findability. How these fundamentals work is described in our article on SEO basics for local businesses.

In addition, paid ads deliver short-term visibility, especially at the start when organic reach is still small. With them, individual products or promotions can be advertised in a targeted way. It is important here too to use the budget in a traceable way rather than scattering it widely – how that succeeds is shown in our article on how to use Google Ads wisely. For local retailers, the Google business profile is also valuable, linking the shop with the real store and making it visible for local searches.

Finally, it is worth looking at existing customers. Those who have already bought from you are more likely to buy again – acquiring new customers is considerably more expensive than maintaining existing ones. Against this backdrop, a large share of small and medium retailers in Germany now sell at least partly online (Bitkom). A simple newsletter, friendly service and reliable processing ensure that a first purchase turns into a relationship. An online shop is therefore not a one-time project but a channel that wants to be maintained – much like a well-run store.

Your local advantage is your trump card

As a local retailer you do not appear as a faceless online provider but as a known store with an address, advice and a face. This closeness creates trust, enables click and collect and makes you distinctive. Play this advantage deliberately, instead of trying to beat large mail-order retailers on their own field.

Effort, Costs and a Realistic Roadmap

An online shop causes not only one-time costs for setup and design but also ongoing effort. Products have to be maintained, orders processed, enquiries answered and returns handled. This operational effort is frequently underestimated and belongs honestly in the calculation. It makes sense to clarify in advance who in the business takes on which task and how much time that realistically costs. A well-planned shop saves a lot here by simplifying and automating workflows where possible.

The ongoing technical operation is part of it too: updates, security, backups and availability must be ensured, because a shop that goes down or is insecure immediately costs revenue and trust. This maintenance can be well organized within a fixed framework, as we offer it in website maintenance. This keeps the shop reliably available without you having to deal with technology every day. That frees your mind for what counts: range, customers and service.

In the end, the most honest path leads through small, verifiable steps. Start with the model that suits your range and your resources, measure the results and expand what works. An online shop is then not a risk but a plannable extension of your business. Whether and in what form the move pays off for you is something we are happy to check together and without pressure – with an eye on effort, margin and real enquiries rather than on the largest possible solution. Our page on the online shop from Hildesheim offers the right framework for this.

This article is based on data from: Bitkom (share of regular online buyers in Germany and smartphone usage), the German Retail Association HDE (e-commerce revenue and the importance of click and collect), the Baymard Institute (average cart abandonment rate and abandonment reasons), Statista (share of mobile web usage), Google (share of local searches) and our own projects with regional retailers. The values mentioned are averages and can vary depending on industry, range and region; figures marked (project experience) are based on our own projects and do not represent guaranteed results.