The E-Commerce Buzz

Do you remember when you had to have enough start up costs to cover a building, supplies, and merchandise? Well, now entrepreneurs can start an online business with very little cash. E-commerce has opened up a wide world of opportunities and ventures for making money. We will explore the pros and cons of e-commerce so you can decide if it is right for you.

The loss of the physical, "brick and mortar", store transforms the way an entrepreneur does business. First of all, the cost of a web based business typically costs less than a physical store, which translates into more profitability. Web based businesses have the ability to draw more traffic and require less employees. When it comes to target marketing the process is more precise because you are able to gather a vast amount of information about your customer. Your customer's interests, location, gender, etc. can assist you in sustaining them as customers and marketing to new ones. Advertising online is also more precise with online businesses. Since you know more about your customers you can create ads and pop-ups that pertain to them in places that they visit frequently. Another great advantage is the ease in the transfer of funds. When you use a company like PayPal it makes transferring funds instant and less expensive. Also, customer based financing may become possible because the customer pays you first and then you have the money to buy the product.

There are some cons to having an e-commerce site. First, there are always the issues with technology. Technology continues to become more and more friendly to the everyday individual. You do not have to be a big tech geek to set up a website and keep it maintained. There are many companies that offer website development and maintenance at fair costs. Even if you do not set up your own website I suggest you learn everything you possibly can about the operation and navigation of it. A successful entrepreneur always tries to learn about every aspect of their business; technology included. Another disadvantage of e-commerce is the loss of the tangible object. Your customer cannot see or feel the actual merchandise. The product may look a different size, color, or texture on the web then it does in person. This increases the likelihood of the item being sent back. The last con is the fact that the social aspect of shopping is lost. There is no physical interaction between your customer, other customers, and you. This can be remedied by having message boards, blogs, or an online community attached to your site. This will bring about connection amongst customers and their opinions about your products.

Online businesses are an amazing success and it is important that you get on board if you have not already. Your customer will never have to worry about your store being closed, waiting in line, parking, finding items, or feeling overwhelmed by the size of the store. It eliminates so much of what people hate about going to a physical store. Sometimes an entire business online is not feasible, but if that is the case then you should still have a website. The web will help you grow your business more quickly, because of higher visibility and access for your customers.