E-Commerce: Pros and Cons
E-commerce is a booming industry that has been rapidly growing for the past decade. On one hand, you have the convenience of shopping from home and having items delivered to your doorstep. On the other hand, there are many challenges with e-commerce that can make it difficult to succeed in this market.
There are many benefits to starting an online store. First, you have the opportunity to reach a much wider audience when they shop from their homes or on the go with a smartphone in hand.
In addition, eCommerce companies don’t require expensive storefronts and can be started for extremely low costs if they choose not to use any outside services, especially if you choose BlueSnap for your payment processing.
Also, you have the ability to track your sales and marketing efforts in great detail, allowing you to make better decisions about where to allocate your resources.
Not to forget, online stores have a much longer lifespan than traditional brick and mortar businesses.
However, there are also downsides that come along with this convenience including high competition which makes it difficult for new businesses to get ahead of the curve without some corporate backing such as funding or successful marketing campaigns.
Another challenge is keeping customers loyal since most items can be purchased elsewhere making return rates very high due to changing tastes and styles over time whereas brick and mortar stores tend to stay more consistent.
Finally, shipping can be difficult due to expensive rates for return items, especially with the uprise of free shipping policies.
So, which one is right for your business?
The answer is both. Although e-commerce offers many more benefits than traditional businesses, the best way to ensure long term success is to incorporate a mix of both so that you can reach as wide of an audience as possible and offer convenience with great customer service.