Today we are going to discuss the pros and cons associated with the e-commerce or m-commerce business. In our last article, we discuss that how to start a business or startup and what are the basic document requirements for starting a business. Here we are discussing the benefits and problems associated with the e-commerce business. So let’s start.
Advantages of e-commerce business
24 X 7
Your e-commerce or m-commerce business is available on 27 X 7 basis for everyone. There is no fixed or limited working hours restriction to you. Your customer can order any product at any time.
Scalable
Your e-commerce or m-commerce business is available for everyone irrespective of geographical boundaries. It is possible that you are doing your business from Shimla (Himachal Pradesh) and your customer buy your products from Chennai (Tamilnadu).
Showcase
You can showcase all of your products in form or images on the particular websites mentioning all the physical or general specifications and your customer can easily view and order that product. You need not have to show (unpack/pack) each product on customer arrival.
Low Operational Cost
The operational cost to run e-commerce business is very less. You need not have to pay the rent of the shop, electricity bill or any other expenses which are associated with offline stores.
Easily start and manageable business
You can easily start the e-commerce business and manage it very comfortably. If you are out of town due to some reason then also your business will not be affected and get the orders online.
Disadvantages of e-commerce business
High Returns
One of the major drawbacks of e-commerce or m-commerce business is Return of products. According to a survey, it is assumed that in an e-commerce business, sellers get 20% return of their total sales. Due to this the profit margin will become reduced. If the seller does not have an offline store then these products will never be resale. Hence a capital loss for the sellers.
Wrong / Damaged Products
Sometimes during logistic the product had damaged. Apart from that sometimes wrong product or no product had been delivering to the customer.
Customers / Sellers Loyalty
As there is not a direct interaction between the sellers and customers so the loyalty factor is absent in the e-commerce business.
Tip of the day: Pay especially attention while packaging of products under e-commerce.
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Disclaimer: Recommendations and suggestions above are generic in nature. Be advised to consult a registered certified trainer or another professional before trying yourself.
