As technology continues to advance, we have seen many businesses considering the potentials that come with creating an online presence. The internet is filled with several e-commerce businesses in different industries that users can engage in.
However, as against the popular belief that it is all good, reviewsbird.co.uk shows that e-commerce has its pros and cons. Though numerous, in this article, we shall be examining the major pros and cons of e-commerce businesses today based on wealth management firms opinions.
Pros of E-commerce Business Today
· Business can enlarge their customer base
By setting up an online business, you can enlarge your business customer base considering that you have access to a global audience. With a physical store, you can only reach those within your locality, region, or state. By creating a website and leveraging social media, you can even sell your products to an international audience.
· Businesses can save money on rent and other utilities
The rent and cost of other utilities that come with setting up a physical store can be eliminated when you set-up an e-commerce business. You can also save the cost of regular maintenance and having to create a safe working space for employees.
· Products can be sold with little or no overhead cost
With an e-commerce business, you can create and sell digital products. These products, many times, do not need any overhead cost. All you need is the intellectual capacity to create one and with the right publicity, you can make a lot of sales and profits.
Cons of E-commerce Business Today
· Consumers still prefer that personal touch
While there is massive alignment with the many changes that advancement in technology brings, there are many who still love that personal touch that comes with transacting with a physical store. There are individuals who love and value the bond they create with a business when they can walk into a physical store.
· There is the risk of customer fraud
The possibility of fraud still remains a major drawback of e-commerce business. There are many people who have been victims of security breaches on information provided on different platforms. There are others that have been scammed simply by providing their credit card details. Lack of trust between customers and businesses is one reason why many people are adamant to transact with e-commerce businesses.
· The challenge of multiple regulations
Setting up an e-commerce business may not require the huge costs that come with setting up a physical store, but you will have to deal with multiplicity of regulations. The first challenge is trying to find out what these regulations are and how they apply to your business. The next challenge is complying with these regulations. Closely related to multiplicity of regulations are the huge taxes that come with running an ecommerce business.
You will discover from the above that setting up an e-commerce business comes with its pros and cons. You have to consider all the factors involved when setting up one and make sure the pros far outweighs the cons. Another important thing to do is to conduct a feasibility study to be sure you are creating an e-commerce business that meets a need in the marketplace.