According to this article: Places you can’t add to the Map , online-only businesses are non-physical presence place type. So, imho, I would choose “doesn’t exist here.”
You can select the reason This place isn’t open to the public.
The detailed reasoning says “because it is private and doesn’t allow public visitors. This includes personal places with no reception desks or public entrances.” That fits well with the online-only business.
Nevertheless, if the business provides service over an area, you can request the owners to convert to that category. That will eliminate the clutter and at the same instance, protect the interest of the small business.
You can read more about that at this link, https://support.google.com/business/answer/9157481?co=GENIE.Platform%3DAndroid&hl=en
@C_T has provided you the correct answer and I’ll be marking it as the solution. Google has always been concerned about losing such data instead of fixing it, and so they now have an option that hides the item but allows the owners to get back on the map by making corrections.
@Mischa_Zegers , I should be clear, both previous answers talked about “online only” businesses. If a business is online only, it should be removed as “doesn’t exist”. But what you described is not online only, rather they are providing a local service. Normally this is referred to as a “face-to-face transaction”, which is a requirement for all businesses to be doing if they want to claim their business. During the pandemic, of course, there is allowances for no contact transactions; but there is still a difference between making cakes for locals versus a store whose model is to take online orders country or worldwide, and then deliver the product online or via mail/courier.