There is no doubt that the e-commerce model has made many businesses viable and profitable. Like all business models, e-commerce has its advantages and disadvantages. It is important to have a good handle on the pros and cons so that you can be informed when making your strategic decisions.
Advantages of e-commerce
Before looking at some of the benefits of e-commerce in detail, a ranking of all the benefits will give you more benefit. The benefits are all comparisons to a physical store and will help you understand why you should do e-commerce.
- Saves time for the customer.
- Offers a personalised shopping experience.
- It minimises the errors that may occur in physical stores.
- It provides the opportunity to make more than one sale at the same time.
- You have unlimited space to display your products.
- Customer feedback is higher.
Larger Market
E-commerce allows you to reach customers all over the world. Your customers can shop anywhere and anytime, especially with the impact of the pandemic, most people have the habit of shopping online. Thus, your sales can be more than your physical store.
Detailed Product Information
Think about how many customers you can give detailed information about your product at the same time in a physical store. Your answer will be maybe 1 or 2. On your e-commerce site, you can share detailed descriptions about your products with everyone at the same time in the length you want and in line with the questions from customers.
Low Cost
There are also developments in the field of e-commerce with technology. Setting up and maintaining an e-commerce store has become easier and more cost-effective than before. You can open your site and start selling without rent and other invoice expenses as in physical stores. In addition, advertising costs are also less costly than traditional.
Retargeting
Retargeting aims to bring the product adverts that the customer has previously viewed on your e-commerce site back to them on the web pages. It helps to unobtrusively remind customers of the product they used to like and perhaps still desire, and encourages them to return to your store and reconsider.
Disadvantages of E-Commerce
As in every business, there are some disadvantages in this business. Before looking at these in detail, it is useful to take a look at our ranking of all disadvantages. Knowing that e-commerce has disadvantages as well as advantages, starting the business will allow you to easily overcome some of the problems you encounter and continue on your way.
- The customer cannot reach the purchased product immediately.
- Not every product can be sold online.
- If you sell all over the world, you may be caught in different tax systems.
- Internet is needed for your products to be visible.
- There is more competition.
- While a question asked face to face can be answered immediately, communication problems experienced online.
Lack of Touch
There are some customers who do not prefer to buy the product without touching it, without trying it. The biggest disadvantage of e-commerce may be that the desire to touch cannot be met. At this stage, you can ask customers who have purchased the product to comment so that you can convince the customer. You also need to enter your best product videos, best photos and best descriptions.
Price Comparison
There are many e-commerce sites selling the same product. Finding the seller who sells the same product at the best price among them will probably only take a few minutes. In physical stores, such a situation is very rare. This is generally not preferred, as it will take a lot of time to visit all stores to find the same product and compare prices. Therefore, you should do your market research well and make your pricing accordingly.
Security Challenges
With the news of fraud, there are still many people who do not favour online shopping. Using a virtual POS on your e-commerce site will put you ahead of other sites. In addition, being visible on social media and having a good communication with your customers can also make you a recognisable seller. In this way, you can convince customers who are hesitant about security to shop on your site.
Product Quality
Although there is a detailed product description on e-commerce sites, you don’t know whether customers will believe you. Especially if there is even one bad review about your store, you will lose the customer from the beginning. In addition to the product descriptions you write in detail and as if the customer is holding the product in his hand, positive customer comments will be very effective at this stage and will be convinced that you sell quality products as well as quality service.
