A high percentage of customers today prefer online shopping instead of going through the hassle of driving out and going to a physical store. Buying online really has its perks, if you have access on the internet you can just search for the products you need, compare prices, add to cart then check out and it’s delivered right at your doorstep, it’s that convenient, so without a doubt, starting an online business does seem like a pretty good idea, however, there are a number of advantages and disadvantages of operating an online business that you probably should know about and here I listed a few:
Advantages:
Doesn’t cost much
Starting an online business is much more cost-efficient, there are fees involving like putting up a website and online ads but the cost is minimal compared to renting a property for a store or an office.
Hire fewer People
When your business is rapidly growing you probably have a lot on your plate now and need that extra set of hands, you don’t need a lot of people working for you, 2 or 3 people should be enough, you just need someone handling all the marketing staff and doing customer service, there’s not a lot to do and some of the tasks you can do by yourself.
Wider reach of Products
Compared to having a physical business where you can only sell your products locally and your customer reach is shorter, online business gives you an opportunity to reach potential customers in other parts of the country or even globally, you just need to know more about the delivery process in order to ship your products to these faraway places.
Disadvantages:
Reliability issues
Common problems that most online businesses encounter are not being trusted by customers, they’re often reluctant in giving their payment details online in fear of credit card fraud or being scammed. It’s a natural behavior of customers you deal with online, especially if it’s their first time.
Costs of shipping
Your customer has to pay for the shipping to have the products delivered to them and the cost depends on the weight of the product and the customer’s location. There are instances where the cost of shipping is greater than what they’re trying to buy, it’s a given that some customers might complain or would just back out if that’s the case.
A lot of competitors
There are so many online businesses nowadays that could be selling the same stuff that you have or offering the same services that you do, chances are you could lose your customers to competitors, what you could do is offer them great deals like discounts, lower prices, or free shipping, you need to bend a little to get new customers coming to you.
Having an online business does not only provide convenience to buyers but also to you, you’re running your business from home that means more time spent with your family.
Read more on how you can win customers over your competitors here: The Secret to Winning Customers over.
