Many companies feel that online sales might be able increase their revenue significantly, but they are uncertain about whether or not ecommerce is right for their business. The answer to this question varies for every business. If you?re considering ecommerce as a way to expand your business, look at some of the benefits and drawbacks to see if ecommerce is right for you.
Expand Your Reach
One of the great benefits of ecommerce is that you can sell beyond your local area. If you?re willing, to ship your products then you can sell items all over the world. Although, the downside to this is that you need to have employees available to handle shipping and an account with a shipping company like UPS or FedEx so that your orders arrive in a timely manner. You also need to keep shipping supplies on hand. However, if you can increase your sales volume enough to offset the costs of having an in-house shipping department than the investment is well worth making.
24/7 Sales
Another great benefit of ecommerce is that you are practically almost always open for business. People shop online any time of the day or night, so if you have an ecommerce presence then your business can accept orders even when your place of business isn?t open. Additionally, just having an online store boosts your Internet visibility and the chances of people finding your website via search engines, increased traffic to your website can also translate into a significant boost in your business?s sales.
Credit Card Fraud
One of the biggest drawbacks of doing business via ecommerce is that online credit card fraud is rampant. Unlike purchases made in person where a person has to physically have the credit card, just having the correct credit card information is enough complete an online transaction. Businesses who sell online do have to deal with fraudulent credit card use and need to have adequate security measures in place to protect themselves from fraudulent transactions as well be able to safely encrypt customer data so that their information is protected.
Access to Information
Training salespeople to understand your products can be costly and time-consuming. One of the advantages of an online storefront is that you can provide enough relevant and descriptive information to pique the customer?s interest and also possibly answer questions he or she may have about your products. The only downside to this is that your competitors will also provide the same information, so you have to monitor your competition carefully to make sure that your offerings are competitive.
Most people feel that the benefits of ecommerce outweigh the drawbacks; however, there are exceptions for every rule. For example, if your business sells perishable items like baked goods then the logistics of shipping may be more than the potential sales are worth. You also need to have the resources to effectively manage an ecommerce site or partner with another company who will manage them for you. Examine the feasibility of adding ecommerce to your business and if you can deal with the logistics, then ecommerce can be a great way to bring in new business
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About the Author:?Elwood Brantz is currently developing a new ecommerce site using magento themes and unique plugins. He loves working online and will never go back to the corporate world.
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Source: http://www.tech-junkie.org/2012/11/21/the-pros-and-cons-of-ecommerce/
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