Online presence has become a part of our life. And it is one of the proofs of our existence. Nowadays, 60% to 70% of people spend their most of time on the Internet. According to this figure have driven businesses too online, who gives the opportunity to reach out to an audience worldwide without geographical difficulties.
In eCommerce industry has noticed a striking growth in the past few years. From this fact, many businesses have already moved online and some businessmen planning to move their business online. Seeing the growth of online businesses like Myntra, Flipkart, Amazon, and others, many businesses are trying to follow in the footsteps.
And after the covid situation, where people still, facing lockdown or followed social distancing, their dependencies on online shopping are have increased even more. But it does mean, that every business should go online? Offline businesses have not potential growth? If you are taking your business online then there will be no drawbacks or challenges, only benefits will be there? In this blog, I am going to explain the benefits and drawbacks of business online.
Benefits: When You Taking Your Business Online
1. Low Operational Cost:
When you take your business online then your operational cost is low because you do not need to buy a fancy store with an expensive front and at a high-end location to attract premium buyers. It eliminates the need to open a physical store. You can do the selling and purchasing takes place through your website. Building an eCommerce website is comparatively very cheap than a physical store and it saves your operational costs.
Now, you have an edge over your competitors, and you can provide products to your customers at reduced prices. Many businesses also try to pad their profit margins, it’s not good for your business. Instead, you should maintain your profit margin, and offer your customers a discounted product.
2. User or Customer Data:
When any people buy the product online from your online store, their details get stored on your platform automatically. Collection of customer detail is a very helpful and important benefit for you because it allows connecting with your customers after they’ve made a purchase with you. However, it is possible, because online businesses have taken it a step ahead by collecting your site’s visitor data through cookies. For instance, you visit any online shopping platform and switch to some other platform without making a purchase. After you notice when you scroll down your feed you can watching the same ads for the same product that you viewed on the online shopping website.
By the online store, you can allow your website visitors to create a profile with you by filling in personal details like social media channels, email, phone number.
3. Custom-built (Customization):
When a customer visits a retail store, they have to buy from the available products. And from this, businesses have to create a huge stock of multiple typ[es of products to cater to customers’ needs. Even after doing so, it sometimes happens that the product that the customer wants is not in stock. After that customer has two options like settle a substitute or search at another store. And this is not good for your business because customer satisfaction is very important and it also can badly affect your business impression.
The online business does not require checking and maintain stocks.
If that product is not available at your store and the customer wants to buy the same product then you can take the order at that time and then arrange for supplies to fulfill it. It reduces your cost of investment and increases customer satisfaction.
Online stores are in a better capacity to adapt to the modern needs of customers. Online business works according to their needs keeping in mind the requirements of the customer.
Online business provides customers with the flexibility to choose from a wide range of products, and get the services at their doorstep. Even it also provides multiple payment gateways options like COD, e-wallet, Debit cards, and others using any suitable option customer can easily pay their shopping amount.
Drawbacks: When You Taking Your Business Online
1. Trust (Reliability):
The E-commerce industry is growing, most of the purchases are limited to trusted brands only. So, if you take your business online, a difficult task to build reliability. Reliability is not important for offline business, because customers are able to see the product physically and can see what they are paying.
Nowadays, cyber threats have a major challenge for online businesses because on daily basis thousand of attacks come on websites. It’s risky for your business and for your client detail. You can increase your website security from regular maintenance & Services. But from this, you can reduce the risk, but never be 100% safe.
3. Poor Customer Service:
Providing customer service can be challenging in online businesses because it does not allow direct, face-to-face interaction. But many of the brands create their reputation for exceptional customer service like Flipkart by investing almost 100 times than that in marketing efforts.
When you plan to take your business online then it’s important to must have the resources or capabilities to provide efficient service.
Nowadays, we can reach out to global buyers to sell our products and services, from the comfort of our homes. If you have an offline store and an online store so it’s more beneficial for your business. From this way, you could manage to both kinds of audience, those who prefer online shopping & those who don’t. You can develop your own mobile app with on demand app development services. You can make a business strategy to channelize your efforts and boost the chances of success.