The Advantages of E-Commerce
The Internet has been a door to a myriad new business opportunities. Business owners of e-commerce and their customers find advantages in Internet transactions as opposed to brick-and-mortar operations. If you’re thinking about starting an e-commerce or adding an online component to your existing business, discover some of the advantages an e-commerce offers.
With an e-commerce, all of your marketing efforts end with one goal—to drive target traffic to your business website. With one central place to send customers—your e-commerce website—it allows you to use many online marketing tactics including email marketing, article marketing, social media networking and e-newsletters. Most of these online marketing efforts are very low cost or free, so an e-commerce allows for highly cost-effective marketing strategies.
Flexible Business Hours
E-commerce breaks down the time barriers that location-based businesses encounter, according to eCommerce Education. Because the Internet is available 24 hours a day, seven days a week, your business never closes. An e-business can literally be making money while you are fast asleep.
Eliminates Geographic Boundaries
An e-commerce also allows you to broaden your reach. An online business can reach customers in the four corners of the Earth. As long as someone has an Internet connection, you may be able to reach and sell your product or service to these visitors to your business website.
Reduces Transaction Cost
Running an online business reduces the cost per transaction because it takes less manpower to complete an online transaction. Once you get your website up and running, the customer places the order online, which removes the need for a salesperson. The customer payment goes through your online payment processing software or system—again eliminating the need for a store clerk. Someone has to download the order and ship it, which is probably you, but an e-commerce transaction has less burden of cost on the business, making each transaction more cost effective than a brick-and-mortar business.
Low Overhead Costs
Running an e-commerce cut back or out most of the costs involved in running a physical location. E-commerces have less expensive phone, rent and utility bills than businesses with physical locations. An e-commerce also reduces the cost of paying employees because you do not need someone to “man” your website during business hours. Some e-commerce do not require any additional space and can be run out of your home, which you are already paying rent for or your mortgage payment. Even housing inventory may not be an issue because you may be able to establish a drop-shipping situation, where your wholesaler ships orders for you on behalf of your business.