As internet access continues to grow around the world and new technologies continue to improve, the amount of money that is spent by consumers online is constantly increasing. In the early days of e-commerce many buyers were hesitant to give our credit card information online, but it is a part of everyday life now for many of us. This gives everyone and every small business an incredible opportunity to do business online.
Now we will look at the strengths of e-commerce and the opportunities that it presets that cannot be duplicated by running a traditional store.
1. Very Low Costs and Expenses
If you want to own a traditional brick and mortar store, the costs and risks involved will be very high. Each month you will have expenses related to the rent or mortgage, upkeep of the property, other overhead costs, salaries of employees, inventory, and that is just the beginning. Anytime there are high costs involved in running a business, the risk is also going to be pretty high.
Although traditional business come with large costs and risks, you can start an e-commerce website on a shoestring budget and be in business the same day. The opportunity to avoid the costs and risks of traditional business is a huge and undeniable advantage of e-commerce.
2. No Employees
One of the biggest headaches of owning a traditional store is dealing with employees and all of the headaches that go along with it. Managing employees is a full-time job, and then some. And that's not to mention the costs that are associated with having employees.
Another huge advantage to doing business via e-commerce is that you can avoid the need to hire and manage employees. Most e-commerce sites can be run by just one person, and if you want to grow you can always hire employees as you see fit.
3. 24/7
If you run a brick and mortar store you most likely have hours when you are open and hours when you are closed. If you're not open no one can buy anything from your store.
As an e-commerce business owner you will benefit from having your online storefront available 24 hours a day, 7 days a week. There will be no need to close up and lock the doors, and customers can come and do their shopping at their convenience.
4. Low Barriers for Entering the Market
If you want to start a traditional business there are all kinds of things preventing you from getting started, and even more preventing you from being successful. Startup costs, acquiring financing, competition. It's all more than most people are able to overcome.
With e-commerce there are relatively low barriers for entry by comparison. Very little financial investment is needed to get started, and although there will be competition, it won't prevent you from being able to run a profitable business.
5. Market to the World
Traditional businesses face major geographic limitations that only allow them to do business with people in their area. With this type of business you have a specific target market that is severely limited because of the geographical restrictions.
As the owner of an e-commerce business you can sell to people anywhere in the world, they just need internet access. Yes, there are some issues with shipping, but with higher shipping charges you can sell to other parts of the world, or you can sell electronic downloadable products that never need to be shipped, regardless of where the purchaser live.
6. You Don't Have to Be #1 to Be Successful
Because of the costs associated with running a traditional store, you'll need to outperform your competition in order to be able to turn a profit. Stores that are not one of the leaders in their industry will usually go out of business.
On the other hand, with an e-commerce site you will have very low expenses, so almost everything that you make will be profit. Because of this, you won't need to have the number 1 site for a specific industry, you can easily survive and remain profitable with just a small piece of the pie.
7. Flexible Working Hours
Running a traditional business means that you will probably need to be there and working just about every hour that it is open. Store owners usually have a very hectic schedule with long hours each week.
While there is certainly work involved in running an e-commerce business, most of the work is more flexible and can be done at your convenience. If you prefer to work specific hours, that is probably possible with an e-commerce business.
Now we will look at the strengths of e-commerce and the opportunities that it presets that cannot be duplicated by running a traditional store.
1. Very Low Costs and Expenses
If you want to own a traditional brick and mortar store, the costs and risks involved will be very high. Each month you will have expenses related to the rent or mortgage, upkeep of the property, other overhead costs, salaries of employees, inventory, and that is just the beginning. Anytime there are high costs involved in running a business, the risk is also going to be pretty high.
Although traditional business come with large costs and risks, you can start an e-commerce website on a shoestring budget and be in business the same day. The opportunity to avoid the costs and risks of traditional business is a huge and undeniable advantage of e-commerce.
2. No Employees
One of the biggest headaches of owning a traditional store is dealing with employees and all of the headaches that go along with it. Managing employees is a full-time job, and then some. And that's not to mention the costs that are associated with having employees.
Another huge advantage to doing business via e-commerce is that you can avoid the need to hire and manage employees. Most e-commerce sites can be run by just one person, and if you want to grow you can always hire employees as you see fit.
3. 24/7
If you run a brick and mortar store you most likely have hours when you are open and hours when you are closed. If you're not open no one can buy anything from your store.
As an e-commerce business owner you will benefit from having your online storefront available 24 hours a day, 7 days a week. There will be no need to close up and lock the doors, and customers can come and do their shopping at their convenience.
4. Low Barriers for Entering the Market
If you want to start a traditional business there are all kinds of things preventing you from getting started, and even more preventing you from being successful. Startup costs, acquiring financing, competition. It's all more than most people are able to overcome.
With e-commerce there are relatively low barriers for entry by comparison. Very little financial investment is needed to get started, and although there will be competition, it won't prevent you from being able to run a profitable business.
5. Market to the World
Traditional businesses face major geographic limitations that only allow them to do business with people in their area. With this type of business you have a specific target market that is severely limited because of the geographical restrictions.
As the owner of an e-commerce business you can sell to people anywhere in the world, they just need internet access. Yes, there are some issues with shipping, but with higher shipping charges you can sell to other parts of the world, or you can sell electronic downloadable products that never need to be shipped, regardless of where the purchaser live.
6. You Don't Have to Be #1 to Be Successful
Because of the costs associated with running a traditional store, you'll need to outperform your competition in order to be able to turn a profit. Stores that are not one of the leaders in their industry will usually go out of business.
On the other hand, with an e-commerce site you will have very low expenses, so almost everything that you make will be profit. Because of this, you won't need to have the number 1 site for a specific industry, you can easily survive and remain profitable with just a small piece of the pie.
7. Flexible Working Hours
Running a traditional business means that you will probably need to be there and working just about every hour that it is open. Store owners usually have a very hectic schedule with long hours each week.
While there is certainly work involved in running an e-commerce business, most of the work is more flexible and can be done at your convenience. If you prefer to work specific hours, that is probably possible with an e-commerce business.
About the Author:
Steven Snell is a web designer from New Jersey. He maintains CartFrenzy, a gallery of e-commerce websites.
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