In recent years e-commerce has reshaped the modern marketplace and compared to traditional brick-and-mortar businesses it’s a dominant model, selling goods or services online. Are you thinking about starting an eCommerce business?
Advantages And Disadvantages Of Ecommerce You Need To Know!
E-commerce or electronic commerce is a business model that involves selling and buying products through the internet. A good eCommerce website offers all the means to customers and merchants to help them to involve in a successful transaction. That’s why eCommerce has become one of the most popular methods of making money online. The main reason behind this explosive growth is the increased requirement of the internet in everyday life. This field of business has evolved to make products easier to discover and purchase.
Like all businesses, eCommerce has its own advantages and disadvantages and there are many more benefits. So here in this article “Advantages And Disadvantages Of Ecommerce, You Need To Know” you will discover the advantages and disadvantages of eCommerce so that you can decide for yourself if this is the right business type for you. Continue reading the full article to find more about it.
Advantages of eCommerce
While doing online business there are many obvious and not-so-obvious pros. So here are some of the major advantages of eCommerce. Let’s find out.
- Low financial cost
One of the major benefits of eCommerce is that it has a lower startup cost. Also, it is the most attractive benefit for new entrepreneurs looking to keep their costs low. With the help of advanced technologies in the eCommerce platform, it has become very easy and affordable to set up and maintain an eCommerce store with low overhead. The store can essentially remain open 24/7 without hiring employees to watch over the store and protect items.
- Potential Income
Online stores are always open for business and with your social media ads like Facebook ads and Instagram ads you can attract someone at 11 p.m. or 4 a.m. in any part of the world. Most of the other stores were open between 9 a.m. to 9 p.m. So by being available at all hours, you can attract people who would normally pick up a product in stores, if the store were open.
- Sell Internationally
The other benefit of eCommerce is that a new brand can sell to customers around the world easily. Also, you have the ability to choose the customer whether they are in America or neighbouring countries. And this allows you to price and ship your products competitively to a worldwide audience. By selling worldwide it is a great feat as it helps you build your brand a lot faster, broadens your marketplace exponentially, and allows you to see profit long before your local competitors.
- More options to “Sell”
In an ordinary store, the merchants can only provide a limited amount of information on a product. But when it comes to eCommerce websites, there is space to include more information such as demo videos, Kibo code reviews, and customer testimonials to help increase conversion.
Disadvantages of eCommerce
For every pro, there is a con. Here is a list of few eCommerce disadvantages. Let’s find out.
- Customers can’t try before they buy
For many retailers, this is currently a major problem and this won’t be a long term problem.
- Highly competitive
The other worst eCommerce disadvantage is about finding the right niche. The reality is the best niches are often the most competitive that’s why people are drawn to them. So the first thing you can do is you can go after a different audience than your competitors.
- You need to ship your products
When customers shop in person, they can take the product right away. But, with online shopping, most customers receive their products in a week or more. So the solution is to let them know when they can expect packages when they place an order.
- Customers can be impatient
Delay responding to customer inquiries is another eCommerce disadvantage. The reality is most customers expect a response from a business within the hour on social media. If you delay in responding to their message, they can become angry and shop somewhere else instead. So you need to be online 24/7.
Like any other business model,eCommerce also has advantages and disadvantages. So it’s good to take a look into those pros and cons before setting up your business strategies.
I hope you liked this article “Advantages And Disadvantages Of Ecommerce You Need To Know” and found useful. If you have any questions about this article do leave us a comment below and we’ll try our best to answer you.