Advantages of Ecommerce

0

E-commerce has revolutionized how we do business and buy products in its brief lifetime over the last 10 plus years. But most people think it is only for bigger "category killers" that compete on price, have huge inventory and logistics capabilities. But the advantages of e-commerce can be realized by even the most small business. In fact, e-commerce is often the best place for new business looking to get a start.

Advantages of ecommerce.

Costs – It typically costs far less to set up an ecommerce store than its equivalent bricks and mortar store. An ecommerce site could have set up for less than $ 5000 including shop plus inventory. It would be hard to set up even that most minimal physical shop for less than $ 50,000.

Scale – Unlike a physical shop, if your business takes off, you can easily scale up bandwidth and server capacity. These days most hosts provide cloud infrastructures, which allow virtual instance scaling at low cost.

Inventory – depending upon the type of business, it is possible to drop ship directly from your suppliers without having to hold physical inventory. Even if your product lines do not allow you to drop ship, you can still engage third party logistics suppliers to handle your inventory and shipping needs. Both these approaches allow you to mitigate your costs and scale up quickly if your on a winner.

Markets – It's not called the World Wide Web for nothing. Your potential market for you product is infinite. And that works in two ways: scale plays, were you sell a lot of low margin products, or the opposite, niche plays where you sell smaller quantities of higher margin products. The advantage of e-commerce is that you can sell products that would work selling locally because the potential market is too small. for instance, if you live in a town of 10,000 people, opening a shop that specializes in model airplane engines would not work, but on the web, locality is mostly irrelevant.

Marketing – Like the other areas, ecommerce allows you to easily scale your marketing and target it. But an advantage often missed is your ability to track the efficiency of your advertising. Using tools like google analytics and Google ad words, it's very easy to track the success of your ad campaigns in a direct way not available in traditional media.

Risk – Let's face it, most start-up businesses fail. But there are degrees of failure. A failure of a physical shop could kill you financially for the rest of your life. Where as an ecommerce shop has costs that are variable, minimal and mostly avoidable. If your business fails, you turn off the site. This means you live to fight another day. That allows you to be a good entrepreneur.

Source by Matt J Brown

Leave A Reply
Bitcoin (BTC) RM330,963.02
Ethereum (ETH) RM16,761.32
Tether (USDT) RM4.73
BNB (BNB) RM2,913.48
USDC (USDC) RM4.73
XRP (XRP) RM2.97
BUSD (BUSD) RM4.74
Cardano (ADA) RM3.10
Solana (SOL) RM875.89
Dogecoin (DOGE) RM1.01
Polkadot (DOT) RM45.11
Polygon (MATIC) RM4.71
Lido Staked Ether (STETH) RM16,700.13
Shiba Inu (SHIB) RM0.000146
Dai (DAI) RM4.73
TRON (TRX) RM0.567479
Avalanche (AVAX) RM254.07