There will always be a value in being able to see and touch a physical product in person, about something that is sold through the Internet. That said, e-commerce is as important as ever to offer exactly what people want, when they need it and for their convenience.
There is also the value of a physical store and encourage people to navigate and discover. This part is not so easy on the front of the digital store, but it requires you to be aware of your marketing game.
There really is not an answer to which is better.
Are you selling just another product or are you selling a lifestyle / experience?