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Physical channels are ways of selling in person, such as shops and face-to-face selling.

Shops and face-to-face selling

A shop lets customers visit, browse and interact with goods first-hand. You can see, feel, try on or experience a product before buying, such as trying a guitar in a music shop. Shops can stock a range of goods, and sales staff can advise and answer questions. A shopfront can also advertise the business to passers-by.

Face-to-face selling happens in shops, and when salespeople visit customers instead of customers going to them. For example, a salesperson might visit a home to demonstrate a sewing machine. It gives advice, demonstrations and reassurance, building trust and a relationship. It is especially important when a product or service needs explanation, demonstration or personal trust.

Location and footfall

Footfall is the number of people who pass by a business's premises or step through its doors. It matters because a shop needs customers to come in. Higher location costs add to expenses and can lower profit unless the site brings in enough extra sales. Large city centre sites are typically the most expensive places to locate a retail store. Premium brands may choose them deliberately for visibility, prestige and high footfall, because a busy, visible site can bring in enough trade to cover the higher costs.

Advantages and disadvantages

PointWhy it matters
Advantage: physical experienceCustomers can see, feel and try products, so they buy with confidence.
Advantage: staff and displaysStaff answer questions and demonstrate products; displays and the shopfront attract attention.
Advantage: personal touchStaff build trust and relationships, encouraging repeat custom.
Advantage: demonstrations and after-salesCustomers can try demo products free and get in-person help after buying.
Advantage: observing behaviourStaff can watch how shoppers browse, helping the business improve.
Disadvantage: high street costsRent, bills, wages and security costs reduce profit.
Disadvantage: travel and accessCustomers must reach the location, limiting the customer base to those who can access it.
Disadvantage: opening hoursUsually limited to normal shop hours, so customers cannot visit at other times.

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