It has become a cliché by now, but the internet has truly revolutionized the business of selling products or services. Establishing an online store is now the easiest way to begin a retail business, and there are many advantages to selling a product or service this way. The pros clearly outweigh the cons, as we shall see.
The obvious advantage an online store has over a brick and mortar establishment is the fact that overhead and other costs can be all but eliminated with an online store. Your office is where you choose to put it, independent of foot traffic or demographics; it could even be in your home. There are still costs associated with any website, but these are minimal compared to the rent or lease payments one would face with a physical storefront. Inventory costs can be minimized as well; with up-front electronic payments from customers, it is possible to sell the item or service before it is purchased or produced. This works as long as the production process is fast. Drop shipping is another option. Some online store proprietors never actually touch the products, acting more as brokers than as traditional merchants.
The internet has permeated all aspects of our daily life. More people do more things online than ever before, and this will continue to be the case. There is a momentum now that cannot be stopped, and people will be increasingly likely to look for the things they need online. This creates a distinct advantage for those doing business on the internet. Along with this comes the opportunity to track customers and market to them after the purchase.
The cons of this mode of business include the need to keep the website current, up-to-date, and constantly evolving. Change occurs rapidly in the online business world, and if the website design and functionality becomes dated, customers will be lost. Another problem is the lack of ability for the customer to see, feel and handle the merchandise before buying. The following comment from a popular technology blog is typical of what many people now do to get around this problem: "I do however go to (brick and mortar merchants) to "touch and feel" merchandise that i will go and buy somewhere else to see if it's worth it."
Another disadvantage of shopping online, from a customer's point of view, is difficulty with returns. Taking a faulty item back to a physical store is a more straightforward process than what people go through when returning an item purchased online, and the refund process can be cumbersome as well. It can be days or weeks before a refund is credited to your credit card, and this is after you pay for return shipping and wait for the item to be received by the retailer.
Although there are still several things that can complicate the online shopping experience, e-commerce has become a great way to begin a business and sell products or services. The upside clearly outweighs the downside.
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