While eCommerce offers retailers ways of reaching consumers and conducting business without the need of a storefront, it has its own disadvantages. Before you launch an online store, you need to be familiar with the pros and cons of running your own online business. Take a look at what you need to know.
Pros
No time restrictions
One of the biggest advantages of running your own online business is that you’re not restricted to work within office hours, you can work around your own schedule and spread the work throughout the day. Because there are no time restrictions, you can manage your schedule based on your business needs and goals.
Low startup costs
Another benefit of starting an online business is that you don’t have to spend a lot of money to set up your online store. You can, for example, purchase a domain name and host your website on a very affordable plan. Selling online also allows you to reach customers from all over the world without additional costs.
Opportunity for more brand exposure
Having an online business as opposed to a brick and mortar shop gives you the opportunity to reach many new prospective customers on the internet. It’s easy for people to find your brand through online searches when you have an online presence and you can interact online. You also have access to free online tools you can use to reach and interact with your customers online.
Cons
Security and fraud
The rise in cybercrime is one of the biggest disadvantages online retailers have to deal with. Security concerns are still keeping many people from shopping online, so you may have to work harder to build trust with your customers. Nigeria’s leading eCommerce payment gateway enables online retailers to integrate the latest security systems for secure online transactions.
More competition
The internet retail industry is expanding at a considerable rate, which means you can expect to have more competitors, and many shoppers search by product and don’t really consider the retailer, especially if they come across a bargain. This means you have to maintain an edge over your competitors to keep consumers coming to your site.
Website costs and technical issues
While you don’t need to spend a lot of money to build an eCommerce site that functions effectively something may, seemingly, randomly go wrong with your site that may impact the sales while your site is down, until technical issues are fixed. Securing your site and hosting costs may also require you to spend more, especially if you want to upgrade your site.
The bottom line is that starting an online business is a great option for a startup with a small budget for capital and can open several new opportunities, but it’s important to have a business plan with strategies detailing how you plan to handle the disadvantages.
