There is no doubt that e-Commerce has drastically changed the modern marketplace in recent years. With the rising numbers of digital buyers, starting with 1.32 billion in 2014, there are 2.05 billion digital buyers in 2020 and 2.14 billion are expected to be in 2021. Though there are so many customers who like to purchase stuff without stepping out of home, this model of commerce isn’t perfect. Selling services and goods online, not. only have numerous advantages but disadvantages too which you must be aware of before starting your online business. In this article, you will find out major e-Commerce pros and cons.
Let’s start with pros:
Low financial cost
First, you can lower costs due to cutting physical store rent and avoid taxes related to its maintenance. If you decide to establish a drop-shipping business and drop-ship products directly from the manufacturer to the client, you can use print on demand with Printify or any other drop-shipping platform. Also if you establish an e-Commerce store, you will have to pay for the domain, website’s hosting and premises to stock your products (if you sell goods, not services), but it will still cost much less than a brick and mortar store. Second, you can save up on staff. It is much more affordable to hire several team members than to hire staff who would work shifts and keep a physical store nice and clean. Also, you can outsource your tasks to employees anywhere around the world. Another thing, you need to own only one e-Commerce store to reach customers around a country or even around the world. But if you had a physical store, how many of them should you build to reach as many customers as you want? Well, the number depends on you, but this would require much more to invest and would take much more time for an investment to return.
A larger market
E-Commerce is the best way to reach millions of customers globally and grow faster. They don’t have to find ways to reach your physical store, waste time on getting there. They just need access to the Internet and right after a few clicks, they are in your e-Commerce store!
It saves time
As mentioned above, customers don’t have to waste time traveling to a physical store and wander around the store to find the necessary products. They can see many listed products just in front of them, on the screen and if they can’t see what they are looking for, they can always use the advanced search tool and find what they need right away. Moreover, they can shop 24/7 without rushing from jobs to reach a store until closing or adjusting to their plans for it.
It is much easier to pull an e-Commerce business into online marketing. You can reach customers by e-mails, ads in social media, articles on various websites and track the results and analyze them to figure out which online marketing channel is most efficient. That’s how you will find the fastest way to acquire customers and attract their attention.
Any user on your e-Commerce store can write a review under the products or services purchased easily. If a customer leaves a negative review, you know that there’s a need to improve it and make a product or a service better quality. If they leave a positive review, they ensure other customers about its’ good quality and influence them to buy it.
Detailed information about products
In a brick and mortar store, you might not be able to find similar products to it and compare it. In this case, you would have to visit multiple shops to know the differences. Moreover, every customer wants to know what he’s buying. An e-Commerce store can offer much more detailed information about products and even offer demo videos.
Lack of a personal touch
Some customers prefer a personal touch and interacting with sales associates at a brick and mortar shop. This might also be important to people who are shopping for some specific products like products related to personal care and fashion wear, and before buying such products people usually prefer to consult with an expert to get advice or suggestions.
Possible late delivery due to third parties
One of the biggest problems is that when someone plans to order online, he cannot be sure is the parcel will be delivered on time.
Inability to experience the product before purchasing it
On e-Commerce stores consumers are unable to feel, taste, hear, touch, smell or try on a product. This might cause insecurity about the products’ quality which may lead to not purchasing it.
With all e-Commerce pros and cons stated, it’s obvious that there are more advantages than disadvantages, but you still have to be aware that your e-Commerce store would run smoothly.
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