ADVANTAGES AND DISADVANTAGES OF E-COMMERCE
ADVANTAGES
#1: Low Financial Cost
One of the benefits of ecommerce is that has a lower startup cost. Physical retail stores have to pay up to thousands to rent one of their store locations. Also, they have several upfront costs such as store sign, designing their store, buying inventory, sales equipment, and more.
#2: 24/7 Potential Income
One of the advantages of ecommerce is that online stores are always open for business. With your ads, you can attract someone at 11 p.m. or 4 a.m.. Most physical location stores are open between 9 a.m. to 9 p.m. By being available at all hours, you can attract people who would normally pick up a product in stores, if the store were open.
#3: Sell Internationally …show more content…
You have the ability to discover your audience whether they’re in the U.K., South America, or neighbouring countries. If you choose to dropship from AliExpress, many products offer affordable ePacket shipping or free standard shipping. This allows you to price and ship your products competitively to a worldwide audience.
#4: Easy to Showcase Bestsellers
While you can design a brick and mortar store to sway people to buy certain products, it’s easier for a customer to find the best-sellers in an online store. The reason why you want customers to buy your best-sellers is because they’re proven. Other customers have already bought them and been happy with their order. If you want to showcase new products to customers you can include them in your upsell, email marketing or retargeting ads.
#5: Personalized Online Experience
You can personalize the online shopping experience. Or segment email lists based on purchases made, location or even how much money a customer spent. You can also retarget a customer who visited your store showing them an ad for a product they added to their cart and forgot about. If your online store has a login feature, you can have a welcome message appear such as ‘Welcome back …show more content…
That’s why it’s important to ensure your website is hosted on the right platform. For example, if you’re paying the minimum hosting fee and get a surge in traffic from a high converting ad or a television shout-out like Shark Tank, your site will likely crash. Fortunately, Shopify offers free hosting in their monthly fee allowing you to have one of the best servers on the market. In recent memory, there was only one time where sites were down.
#2: Customers Can’t Try Before They Buy
While this is currently a problem for many retailers, this won’t be a long-term problem. With augmented reality, more stores are starting to add AR elements to their store to allow customers to try products on. Augmented reality companies like Holition and Augment, offer solutions for businesses to create a more interactive experience with your customers. If you own a cosmetics store, you can check out Sephora’s Virtual Artist app for an example of a beauty retailer with an augmented reality experience.
#3: Ecommerce Is Highly
ADVANTAGES
#1: Low Financial Cost
One of the benefits of ecommerce is that has a lower startup cost. Physical retail stores have to pay up to thousands to rent one of their store locations. Also, they have several upfront costs such as store sign, designing their store, buying inventory, sales equipment, and more.
#2: 24/7 Potential Income
One of the advantages of ecommerce is that online stores are always open for business. With your ads, you can attract someone at 11 p.m. or 4 a.m.. Most physical location stores are open between 9 a.m. to 9 p.m. By being available at all hours, you can attract people who would normally pick up a product in stores, if the store were open.
#3: Sell Internationally …show more content…
You have the ability to discover your audience whether they’re in the U.K., South America, or neighbouring countries. If you choose to dropship from AliExpress, many products offer affordable ePacket shipping or free standard shipping. This allows you to price and ship your products competitively to a worldwide audience.
#4: Easy to Showcase Bestsellers
While you can design a brick and mortar store to sway people to buy certain products, it’s easier for a customer to find the best-sellers in an online store. The reason why you want customers to buy your best-sellers is because they’re proven. Other customers have already bought them and been happy with their order. If you want to showcase new products to customers you can include them in your upsell, email marketing or retargeting ads.
#5: Personalized Online Experience
You can personalize the online shopping experience. Or segment email lists based on purchases made, location or even how much money a customer spent. You can also retarget a customer who visited your store showing them an ad for a product they added to their cart and forgot about. If your online store has a login feature, you can have a welcome message appear such as ‘Welcome back …show more content…
That’s why it’s important to ensure your website is hosted on the right platform. For example, if you’re paying the minimum hosting fee and get a surge in traffic from a high converting ad or a television shout-out like Shark Tank, your site will likely crash. Fortunately, Shopify offers free hosting in their monthly fee allowing you to have one of the best servers on the market. In recent memory, there was only one time where sites were down.
#2: Customers Can’t Try Before They Buy
While this is currently a problem for many retailers, this won’t be a long-term problem. With augmented reality, more stores are starting to add AR elements to their store to allow customers to try products on. Augmented reality companies like Holition and Augment, offer solutions for businesses to create a more interactive experience with your customers. If you own a cosmetics store, you can check out Sephora’s Virtual Artist app for an example of a beauty retailer with an augmented reality experience.
#3: Ecommerce Is Highly