The Pros and Cons of E-commerce Business

The Pros and Cons of E-commerce Business

August 22, 2016 Admin 2Comment

Negative and positives are the two sides of the same coin. When someone thinks about starting an Ecommerce store, they assume both these effects on their business. While Ecommerce stores have benefits, they also have some unique challenges and for any entrepreneur, it is important to be aware of both sides before putting their head in the big Ecommerce world.

To help the entrepreneurs with successfully commencing their Ecommerce business, we have rounded up some advantages and disadvantages about getting into the world of Ecommerce.


You don’t need a physical store
Save yourself from paying for the location. While of course, you have to pay for the hosting for your website, they’re usually cheaper than paying rent for your shop.

Inventory Management
Ecommerce businesses can maintain lower inventories and still not face out of stock situations.

Requires Less Staff
Ecommerce requires less staff as processes are automated. Human resources can be used for effective high- level functions.

Reach to a bigger market
Reach of ecommerce stores is much wider compared to a physical store.

Sell 24/7
Click, search, buy, regardless of time and location is one of the best advantages of Ecommerce businesses that your store is always open of new orders.

A Lot To Choose From
List as many product pictures you want.

Gain Search Engine Traffic
With the right ecommerce SEO, search engines can act as a great source of qualified free traffic.

 Track Logistics
Monitor your logistics and sell successfully

Ease of Communication
Captures visitors contact information in the form of email and send out automated and customized emails later.

Superior Customization
Keep refreshing the look of your store as per the changing consumer behaviour.


Lack of Personal Touch
You might definitely personal touch and relationship that develops with a retail store.

Inability to Experience the Product Before Purchase
Consumers are unable to touch, feel, hear, taste and smell the product before they buy.

 Need for an Internet Access Device
Ecommerce can only be transacted with the help of an Internet access device such as a computer or a smartphone.

The competition is fierce.
As an ecommerce seller, you compete with the whole world. It can be harder to stand out and hold your own when your customers have limitless options.

It’s harder to establish awareness and trust.
When you own a physical store, you interact with your customers face-to-face, which allows you to build relationships and trust. This is much harder to do when you’re a nameless, faceless entity on the Internet. Building trust for eCommerce stores requires work, attention, and great customer service. If you’re not prepared to offer those things, your store will suffer.

Delay in Receiving Goods
If shopping is about instant gratification, then consumers are left empty-handed for some time after making a purchase on an ecommerce website.

Inability to Identify Scams
Consumers are often taken in by fly-by-night ecommerce websites that look good but are up to no good. Scam artists often accept orders and then disappear.

Choosing the right eCommerce platform on which to build your site can make a huge difference in your business. Check this roundup where 48 experts shared their opinions on this topic.

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