Why start an eCommerce business?
There are plenty of reasons why starting an eCommerce site for your business makes a great deal of sense for both you and your prospects and customers. There might never be a better time than right now. From your own businesses point of view, if you have a way of enabling customers to transact business online through an eCommerce site, you stand to benefit from many advantages.
Firstly, being able to offer your products online instantly multiplies your market reach beyond your neighborhood or city to take in the whole of the country, or even perhaps the whole of the world. While there are some potential problems in dealing with the global marketplace – arranging delivery, accepting online payments and things of that nature – these problems are far less troublesome nowadays than they were even a couple of years ago.
What is eCommerce and why you should take notice?
Better online security
Online security is better than ever, so whereas accepting secure online payments for transactions conducted online might have given you cause for concern in the past, it should no longer do so because online payment systems have improved since those times. Added to this is the fact that global markets are becoming inherently more open, meaning that it is becoming more normal for people to trade across borders.
Less start-up capital
If you are thinking of starting a new business, then cash flow is always an extremely important consideration, and once again, operating an online business has significant advantages over running a business from a high street store or an office in a tower block.
Firstly, in contrast to running a real-world business, you do not need significant amounts of start-up capital to launch an online business. There is no need to rent premises (removing a drain on your income), you do not need bank loans to fund inventory purchase (another cash drain) and staff are for the most part something that other people need to worry about (although taking on staff once your business starts to generate an income is certainly something that you will need to consider).
As a general rule, most businesses that sell their products online will get paid more quickly when they do so than if they were trading locally. This makes a good deal of sense, because in many situations, if you are dealing outside your locality or even outside your country, you’re not likely to release the goods until payment is received, but if you are trading locally, it is probably far more common to extend credit terms to your customers.
Level playing field with the big boys
One of the biggest advantages of starting an eCommerce business is that operate online are playing on a level field as well. Whether you are the biggest multinational or a small, one person operation makes no difference as far as your customers are concerned. They cannot have any concept of how big your operation is from your website (as long as it is constructed professionally), and as long as you operate professionally, the size of your business is irrelevant. This is noticeably different from the way it works in the real world, where customers will often deal with big businesses rather than small businesses because of (an often misguided) belief that by doing so, they are getting the best prices and dealing with the most professional operators. However, it is not only your business that will benefit from your eCommerce enabled website, because as well as opening up markets that you had no way of accessing before, it also makes life far easier for your existing customers.