#10 Pros & Cons of Doing Business Entirely Online
What are the pros and cons of doing business entirely online without a physical storefront or presence?
Many years after the invention of the internet, e-commerce is growing each year. Starting an internet-based business is becoming both easier and cost effective due to advancement in technology. Now we are seeing some companies using both platforms to conduct business. Who would image being able to purchase an automobile, real estate or car insurance via the internet? All of these products or services are purchased both ways, sold sometimes by the same company.
So which is better or do they each have advantages and disadvantages? Several factors come in play when comparing the delivery methods, online or traditional brick and mortar. Let’s consider the following for e-business:
· Audience – your customers are now all over the world
· Segmentation – your customers become segmented due to search platforms
· Upfront Costs – significant different in cost, online is much cheaper
· Adaptability – you can change your products easier online
· Ease of Use – purchases can be made from your home
Taking each of these factors into consideration, you can understand why e-commerce is growing.
E-commerce improves the efficiency of traditional models, storefront businesses. Online provides the following advantages:
· Reduces Business Cost
· Decreases Stock
· Decreases Waste
· Shorter production Cycles
· Increases Businesses Opportunities
· Cuts Out the Middle Man
· Opens International Sales Opportunities
The need for the traditional business model is necessary. Some items even though you could purchase most items online, you must consider the convenience.