How to Transition Your Brick and Mortar Business to Online: A Step-by-Step Guide

What does ‘transition brick-and-mortar business to online’ mean?

Brick-and-mortar online represents the evolution of traditional retail into the digital age. This term describes physical businesses that have expanded their operations to include online selling, creating what's often called a hybrid retail model (also known as “brick and click” or “click and mortar”). Unlike businesses that operate exclusively online or offline, brick-and-mortar online businesses leverage the strengths of both a physical and digital presence.

A traditional brick-and-mortar store refers to any business with a physical location where customers can visit, touch products, and make purchases in person. When these businesses move to an online store, they don't necessarily abandon their physical presence—instead, they create complementary digital channels that serve customers who prefer online shopping while maintaining the personal touch that makes physical stores valuable.

Examples of successful brick-and-mortar retail stores that can transition to online retailers include the following:

• Local bookstores that offer online retail ordering with in-store pickup
• Clothing boutiques that showcase inventory online and provide virtual styling services
• Hardware stores that combine local expertise with ecommerce convenience
• Restaurants that maintain dine-in service while offering online ordering and delivery

Why move your brick-and-mortar business online?

Expanding your brick-and-mortar business to have an online component offers compelling advantages that can significantly impact your bottom line and long-term sustainability. Below are the benefits of selling online and maintaining an online presence.

• Expanded reach beyond geographic limitations. Your brick-and-mortar store serves customers within a specific radius, but an online retail presence can attract buyers from across your region, country, or even internationally.
• Lower operational costs. Expanded reach translates directly into increased sales opportunities without the overhead costs of opening additional physical locations. You can leverage existing inventory, staff expertise, and supplier relationships while reaching new customers through digital channels. Digital sales may provide higher profit margins due to reduced per-transaction costs.
• 24/7 availability. With an online retail presence, your business never closes. Customers can browse your products, read reviews, and make purchases at any time. This round-the-clock accessibility often leads to more sales, especially from customers who work traditional hours and prefer to buy online during evenings or weekends.
• Enhanced customer and sales data. Digital platforms provide detailed analytics about customer behavior, preferences, and purchasing patterns that brick-and-mortar stores cannot easily track. This data helps you make informed decisions about inventory, online marketing strategies, and customer service improvements.
• Resilience against local disruptions. Businesses with online store capabilities can be more adaptable during challenging periods, maintaining revenue streams even when physical operations face restrictions. This diversification provides security and stability that solely physical operations lack.

How to transition your brick-and-mortar business online in 6 steps

Successfully transitioning your brick-and-mortar business online requires a strategic, step-by-step approach. The key is starting small, learning from each phase, and gradually expanding your online presence as you gain confidence and expertise. This methodical approach allows you to maintain your physical operations while building a sustainable online business that complements, rather than competes with, your existing brick-and-mortar store.

Step 1: Assess your current business

Moving a physical store online isn’t a one-size-fits-all approach. Different businesses will have different goals for their online retail presence. That’s why it’s important to understand your online goals, whether that’s simply providing online ordering for your restaurant or building an ecommerce website where customers can shop 24/7. 

You also need to take a pulse on your customers’ preferences. Consider sending out a survey that asks your valued customers how they shop, what they usually shop for, what they look for in an online shopping experience, and so on. After all, your customers are one of the keys to a successful online transition.

Step 2: Sell through online marketplaces first

Before investing in your own ecommerce website, gain experience with online selling through established online marketplaces. This approach offers several significant benefits: 

• Immediate access to established customer bases
• Built-in payment processing and security features
• Lower initial investment and technical requirements
• Opportunity to learn online customer service and fulfillment
• Reduced marketing costs due to existing platform traffic
• Ability to generate revenue while learning the digital retail landscape

Specialized marketplaces offer targeted audiences for specific types of products. Etsy works well for handmade, vintage, or unique items, while Beyond Main focuses specifically on supporting local businesses by creating "shop-local" online retail marketplaces. Mercato provides a platform designed for independent grocers, with local delivery capabilities.

Step 3: Build your ecommerce website

Once you've gained experience with online retail store sales through marketplaces, it’s time to develop your own ecommerce website for greater control over the customer experience and higher profit margins. However, this step requires careful planning and professional execution to ensure success.

First, choose the right platform. Popular options like Shopify, WooCommerce, and BigCommerce offer different advantages depending on your technical expertise and specific needs. Consider factors such as transaction fees, customization options, ease of use, and integration capabilities with your existing business systems. Consider hiring a professional to help you build and maintain your website to get the most out of the platform’s features. 

Top ecommerce platform features to look for include the following:

• Design that is responsive to mobile devices
• Secure payment processing with multiple payment options
• Inventory management integration with your brick-and-mortar store
• Customer account creation and order-history tracking
• Search functionality and product filtering capabilities
• Customer reviews and ratings systems

Step 4: Integrate online and offline inventory and logistics

Maintain a seamless integration between your physical and digital operations in the following ways:

• Implement unified inventory management systems that track stock levels across both online and physical sales channels in real time. This prevents the frustration of customers ordering items that are actually out of stock and helps you make informed decisions about restocking and product promotion.
• Develop efficient fulfillment processes that can handle both online store orders and in-store pickup options. Many customers appreciate the flexibility of ordering online and picking up at your brick-and-mortar location, which also provides opportunities for additional in-store sales. Consider offering services like curbside pickup or local delivery to enhance convenience.
• Train staff to handle both online and offline customer interactions seamlessly. Your in-store staff and online team should be able to assist customers who call with questions about online shop orders, process returns from online purchases, and help customers who want to examine products in store before completing online purchases.
• Establish clear policies for returns, exchanges, and customer service that work across both channels. 

Step 5: Launch digital marketing and local SEO campaigns

Effective marketing bridges the gap between your established local presence and your new online retail capabilities. A well-rounded marketing strategy should include local SEO, email and text marketing, social media, and content marketing. Plus, you should create loyalty programs and customer referral programs—all to leverage existing customer relationships while attracting new online shoppers.

Step 6: Monitor performance and refine your strategy

Successful online shop expansion requires ongoing attention to performance metrics and continuous improvement based on data and customer feedback. Regular monitoring helps you identify opportunities for growth and meet customer expectations while addressing challenges before they become significant problems. Take the following into account: 

• Track key performance indicators, including website traffic, conversion rates, average order values, and customer acquisition costs. Compare these metrics across different marketing channels to understand which strategies provide the best return on investment.
• Analyze customer behavior using tools like Google Analytics to understand how visitors interact with your website. Identify pages where customers frequently exit, products that generate the most interest, and checkout process bottlenecks that may be preventing sales.
• Gather customer feedback through surveys, reviews, and direct communication to understand their online shopping experience. Use this feedback to make improvements to your website and customer service approaches.
• Stay flexible and responsive to changing market conditions and customer preferences. The online retail landscape evolves rapidly, and successful businesses adapt their strategies based on new opportunities and challenges.

Marketing and SEO essentials for brick-and-mortar online

Effective marketing for brick-and-mortar online businesses requires a strategic blend of digital marketing techniques and local community engagement. The key is creating integrated campaigns that drive traffic to both your physical and digital locations while building lasting relationships with customers across all touchpoints.

Optimize local SEO for brick-and-mortar businesses

Local SEO represents one of your most powerful tools for attracting customers who are specifically looking for businesses like yours in your area. Unlike purely online retail stores, your physical presence provides significant advantages in local search results when optimized correctly. Here’s where to start. 

• Optimize your Google Business profile with complete, accurate information, including your address, phone number, hours of operation, and website URL. Regular updates about special events, new products, or seasonal hours help keep your listing fresh and engaging. Encourage satisfied in-person and online shoppers to leave reviews, as positive ratings significantly impact local search rankings.
• Incorporate location-specific keywords throughout your website content, product descriptions, and blog posts. For example, instead of just targeting "handmade jewelry," optimize for "handmade jewelry in [your city]" or "custom jewelry store near [local landmark]." This approach helps you compete effectively against larger online retailers by emphasizing your local presence.
• Create location-based content that demonstrates your community involvement and local expertise. Blog posts about local events, partnerships with other businesses in the area, or guides to your neighborhood can attract local search traffic while establishing your business as a community resource.
• Maintain consistent information across all online directories, social media profiles, and website pages. Inconsistent information confuses search engines and can hurt your local search rankings.

Create engaging online content for your store

Content marketing helps establish your expertise while providing value to customers beyond simple product promotion. Your content strategy should leverage the knowledge and experience you've gained through years of serving customers in your brick-and-mortar store. You can do this in the following ways:

• Develop educational content that helps customers make informed purchasing decisions. How-to guides, product comparison articles, and maintenance tips demonstrate your expertise while attracting organic search traffic. For example, a hardware store might create guides for common home repair projects, while a clothing boutique could offer styling advice for different occasions.
• Share behind-the-scenes content that humanizes your business and builds emotional connections with customers. Stories about your business history, employee spotlights, or the process of selecting new products help customers feel connected to your brand in ways that purely transactional relationships cannot achieve.
• Create seasonal and timely content that addresses customer needs throughout the year. Holiday gift guides, seasonal maintenance reminders, or trend forecasts keep your content relevant and encourage repeat visits to your website.
• Optimize content for search engines by conducting keyword research and incorporating relevant terms naturally throughout your articles. Focus on long-tail keywords that reflect how customers actually search for information related to your products and services.

Use social media to build community and drive more sales

Social media platforms provide powerful tools for maintaining relationships with existing customers while attracting new ones through authentic engagement and community building. Reach various customers by:

• Choosing platforms strategically based on where your customers are most active. Facebook often works well for local businesses due to its strong community features and local business tools, Instagram excels for visually appealing products, and LinkedIn might be appropriate for B2B services.
• Setting up shops on social media platforms. Facebook Shops and Instagram Shopping provide excellent starting points for local businesses. These platforms leverage your existing social media presence and allow customers who already know your brand to browse items through familiar channels, then purchase directly from your website. Setting up these shops is typically free and can be accomplished in a few hours, making them ideal for testing the waters of online retail shop sales.
• Sharing authentic, valuable content that goes beyond product promotion. This approach builds genuine engagement and positions your business as a valuable community resource.
• Engaging actively with your audience by responding to comments, sharing user-generated content, and participating in local online conversations. 
• Using social media advertising strategically to reach potential customers in your local area or those interested in your specific products. Platform advertising tools allow precise targeting based on location, interests, and behaviors, making your advertising budget more effective.

Incorporate paid advertising

While organic marketing provides long-term value, strategic paid advertising can accelerate your online growth and help you compete effectively in crowded digital marketplaces. The following are paid advertising strategies and best practices.

• Start with Google Ads, focusing on local search terms and product-specific keywords. Local service ads and Google Shopping campaigns can be particularly effective for brick-and-mortar shops expanding to online retail stores. Begin with small budgets and expand successful campaigns gradually.
• Consider Facebook and Instagram advertising to reach customers in your local area or those interested in your specific products. These platforms offer sophisticated targeting options and can be particularly effective for businesses with visually appealing products or strong community connections.
• Implement retargeting campaigns to re-engage visitors who viewed your website but didn't make purchases. 
• Monitor and optimize continuously by tracking metrics like click-through rates, conversion rates, and return on ad spend. Successful paid advertising requires ongoing attention and adjustment based on performance data.

How to measure online success for your brick-and-mortar retail business

Measuring the success of your online expansion requires tracking both traditional ecommerce metrics and unique indicators that reflect the integrated nature of your brick-and-mortar shop and online shop business. Understanding the following metrics helps you make informed decisions about where to invest your time and resources while identifying opportunities for improvement and growth:

• Website traffic and engagement metrics provide insights into how effectively you're attracting and retaining online visitors. Monitor unique visitors, product page views, time spent on site, and bounce rates to understand user behavior. Pay particular attention to traffic sources to identify which marketing channels provide the best results for your investment.
• Conversion rates and sales metrics reveal how effectively your website turns visitors into customers. Track overall conversion rates, average order values, and cart abandonment rates. Compare these metrics across different traffic sources and customer segments to identify optimization opportunities.
• Customer acquisition costs and lifetime value help you understand the long-term profitability of your online expansion. Calculate how much you spend to acquire each new online retail shop customer and compare this to their total value over time. This analysis helps you make informed decisions about marketing investments and customer retention strategies.
• Cross-channel integration metrics are particularly important for brick-and-mortar shops that move their store online. Track how many online customers also visit your physical store, how in-store customers engage with your online presence, and the overall impact of your integrated approach on loyal customers and consumer spending.
• Local search and review metrics reflect your success in maintaining a strong local presence while expanding your store online. Monitor your Google Business insights, review ratings and frequency, and get insights on local search rankings for relevant keywords.
• Inventory turnover and fulfillment efficiency become more complex when managing both online and offline sales channels. Track how quickly products sell across different channels and monitor fulfillment costs and delivery times to ensure operational efficiency.

Common challenges when moving brick-and-mortar to a retail store online—and how to overcome them

Transitioning from brick-and-mortar to online operations presents unique challenges that require patience, strategic thinking, and often significant learning curves. Understanding these common obstacles and their solutions can help you navigate the transition more smoothly while avoiding costly mistakes that derail many well-intentioned online expansions:

• Technical complexity and website management often overwhelm business owners who excel at running brick-and-mortar stores but lack digital expertise. The solution lies in recognizing your limitations and investing in professional help rather than attempting to handle everything yourself. 
• Inventory management across multiple channels can create confusion and customer dissatisfaction if not handled properly. Implement systems that update stock levels in real time across all sales channels. This prevents overselling and ensures consistent product availability information for customers.
• Customer service expectations differ significantly between online and offline environments. Online customers often expect immediate responses and 24/7 availability, which can strain small business resources. Address these challenges by setting clear response time expectations, implementing automated systems for common questions, and training staff to handle digital customer service effectively.
• Shipping and fulfillment logistics represent entirely new operational challenges for businesses accustomed to face-to-face transactions. Start simple with reliable shipping partners and clear policies, then expand your capabilities as you gain experience. Consider offering local delivery or in-store pickup options that leverage your physical presence.
• Marketing budget allocation becomes more complex when balancing online retail store advertising with traditional local marketing efforts. Begin with small digital marketing budgets and scale successful campaigns gradually. Track return on investment carefully to ensure your marketing dollars are working effectively across all channels.
• Time management and resource allocation can become overwhelming when managing both physical and digital operations simultaneously. 

Legal considerations when moving your brick-and-mortar business to an online retail shop

Expanding to an online store introduces new legal requirements and compliance considerations that differ significantly from traditional retail operations.

Your business structure and registration requirements may need updating when you begin selling through an online store, especially if you plan to sell across state lines. Your current business entity might require modifications or additional registrations, like a seller’s permit, to accommodate online sales activities. Consider whether your existing LLC or corporation structure adequately protects your expanded operations and provides the tax advantages you need for online retail shop sales.

Sales tax compliance becomes significantly more complex when selling online to customers in multiple states. Most states require businesses to collect sales tax on online sales if they meet certain economic thresholds, even without physical presence in those states. You'll need to register for sales tax permits in applicable states, collect appropriate taxes, and file regular returns. 

Online privacy and data protection requirements mandate specific policies and procedures for handling customer information. Your website may require a comprehensive privacy policy that explains how you collect, use, and protect customer data. Depending on your customer base, you may need to comply with regulations like the California Consumer Privacy Act or other state privacy laws that affect online businesses.

Terms of service and return policies require careful drafting to protect your business while meeting customer expectations and legal requirements. These documents should clearly outline customer rights and responsibilities, return procedures, shipping costs and policies, and dispute resolution processes. 

Intellectual property considerations become more important when operating online, where your brand, product images, and content are more easily copied or misused. Consider trademark protection for your business name and key product names, especially if you plan to expand beyond your local market. Additionally, ensure that you have proper rights to all images and content used on your website and in marketing materials.

Employment law implications may arise if your online expansion requires hiring additional staff or changing existing employee responsibilities. Online customer service, order fulfillment, and digital marketing often require different skills and may involve different working arrangements than traditional retail positions.