Many retailers today use e-commerce websites to reach out to different clients and make sales. Ideally, it is considered to be economic suicide to run any form of business today through offline platforms alone. However, before you decide to venture online, you should know all the advantages and disadvantages of selling online.
Advantages of e-commerce
Open 24 hours, seven days a week
As an online retailer, you can easily increase your sales and profits simply because the platform will allow you to operate twenty-four hours, seven days a week. Even when you are not available, interested shoppers will be able to see what you are selling by simply visiting your website and if need be, make online orders.
Unlimited geographical boundaries
As an online retailer running an e-commerce website, you will be able to sell your products or services in any part of the world without incurring any additional expenses. This means that you will be able to expand into global markets or easily target an extremely focused market segment without necessarily having to set up physical shops in different areas.
Affordable marketing campaigns
Through your e-commerce website, you can easily market your products and convince different clients to visit your store and make purchases, without spending a lot of money. There are lots of online marketing platforms which you can use to market your products and gain the attention you seek. Facebook, Twitter, Instagram, and LinkedIn are just some of the many online platforms you can consider.
Disadvantages of selling online
Security is one of the biggest challenges many e-commerce stores face. While many people prefer online shopping, security concerns still discourage them from going for the option. Unless they are convinced enough, many shoppers will rarely provide their personal details and credit card information.
Challenges in delivering of goods
As online retailers expand their businesses in other regions, they also increase the difficulties of providing products, and failure to provide goods as promised usually leads to conflicts which in many cases ruin the image of the retailers’ business.
The importance of Omni-channel retail
Omnichannel retail refers to selling products through multiple channels. Today, a retailer might have a traditional brick and mortar store, an online store and even a mail order business, and this is a perfect example of such a channel. Basically, through the different channels, a retailer can easily increase his market influence and by and large profit margin.