A goood product for an online store appeals to a nationwide customer, not just a local customer. Since the product should be a niche product - something not found at Target, the market has to be larger.
If your business is a local service business like a home builder, it is still a good idea to have a website. It is just that the website will not be the primary revenue generator. In this case, the website serves as a huge information store. A website can have lots of text on lots of pages, but a brochure has only three pages of text. So, the technique for a local service business is to put your website address on everything: business cards, brochures, truck decal, advertising. Then people will type in your website and read lots of information about you which adds to your credibililty. Then they are more informed and trust you more when you meet with them face-to-face.
Some products have a local appeal only, like region-specific logos on sweatshirts. Those may not do as well as a wildlife sweatshirt that appeals to people everywhere.
