A lot of people believe that nothing can beat the traditional way, but in business that’s not always the case. The traditional way of setting up a business is fine, people still do that but with the advancement of technology and the internet practically taking over our lives, selling online might be more convenient to some. But what are the actual advantages of establishing a business and transacting online compared to just sticking with the traditional way. To get a clearer picture, we’re here to discuss with you the top and most obvious advantages of an online platform.
1. Setting Up the Business
When an entrepreneur decides to set up a business on an internet platform, they have little to no expenses; the expense depends on whether they choose to purchase a domain to create their own website, pay for an account at websites that host buy and sell or they simply create an account for their new business on a major social media website. Typically, the process would only involve thinking about a catchy business name, posting relevant photos of their products, adding descriptions, sharing their link and waiting for customers to inquire. The most difficult part is establishing their online presence, but with effort and time it will come.
On the other hand, the traditional way of setting up a business involves out a strategic location and acquiring the spot; either you actually buy the lot and have an establishment built or you can opt for rental. Once papers have been signed, you need to renovate the place, one that catches the buyer’s attention. Next is to display products in a way that reels people in and advertising your new business so people become informed that there’s a new shop in town. Don’t forget about the business permits that you need to apply and pay for. As you can imagine, it will cost a hundred times more compared to setting up a shop hosted on the internet.
2. Convenient to Customers
There are perfectly good reasons why customers prefer online shops nowadays and one of them involve the convenience. A customer can browse through each and every product offered by an online shop and make inquiries anytime; online shop can be considered as a 24 hour shop and inquiries can be made anytime even if answers may come a few hours later. In case a customer fell in love with a product and all inquiries have been answered, they can easily pay for them item all at the convenience of their own home. All that’s left is to wait for the item to arrive and if the customer experiences outstanding service then they’ll surely comeback for more.
Physical shops are also convenient, but it becomes less so when a customer drove quite a distance just to be disappointed that the shop didn’t have what they wanted. Because of the gas and effort that they wasted, they might not come back from it and opt for a different store; a store that, in their opinion, offers more choices.
3. Less Employee and Administrative Expenses
A typical online business, especially one that’s starting out, will have one owner and that owner is also the only employee under the business. It’s not as bad as it sounds, you will be your own boss and you don’t have to pay any salary. Since you basically have no administrative expenses or employees to pay, you’re able to offer products at cheaper prices compared to those in physical stores. Another advantage here is that you know every little thing that goes on in your business.
Physical stores don’t really have a choice but to allocate funds for administrative expenses and employees’ salary; the number of employees will depend on the kind of business and if only started out, during the establish stage the owner can still keep an eye on the shop by themselves. These expenses will be taken out of the revenue so the owner needs to add a little bit to the price tags in order to cover them. No, the prices won’t double but customers who are able to find a cheaper option online won’t opt for the physical store.
Whether you choose to establish an online store or a physical one is up to you, your preferences and the convenience. Online businesses are not the preferred way all the time, let’s say that you have an empty lot lying around then why not set your business there? If you honestly can’t decide then why not do both? Customers love it when a physical shop has online accounts or websites; they’ll be able to look at products online and go to the physical shop to purchase it in order to avoid any shipping fees. A traditional business with online presence is the preferred choice.