Why eCommerce is a Must For Brands to Grow?
We are sure that all users reading this article will realize how significant the internet takes in their life. The global network has opened for people not only a number of cognitive opportunities but also brought communication between users to a whole new level! Therefore, it was no news to anyone that the Internet began to be used to carry out online business.
Currently, almost every serious and diligent person is able to earn money using the World Wide Web. “How?” – some will be surprised. The answer is simple – with e-commerce!
E-commerce and its main components
E-commerce is a very broad concept and includes many categories, which we will discuss later. If you give the most generalized interpretation of this term, we can say this is a system of economic relations that are carried out using the Internet. In a narrow sense, e-commerce is an online enterprise.
This can be a regular information site with basic information about the organization, services, answers to frequently asked questions, contact details. Or it can be a full online store .
It all depends on the specifics of the organization, its scope and goals. Also, this direction is a great chance for individual entrepreneurs who decide to try themselves as network businessmen.
In the modern world, more and more processes are becoming automated, therefore, obviously, this area of the Internet business will successfully develop further. We will tell you more about the advantages and disadvantages of network commerce.
1) The main advantage is its ability to reach the global market, not necessarily implying large financial investments and expenses. Restrictions on this type of trade are not geographically determined. This allows consumers to make global choices, obtain the necessary information and compare offers from all potential suppliers, regardless of their location.
2) Thanks to direct communication with the end consumer, online entrepreneurship reduces the chain of intermediaries, sometimes even completely eliminating them. This creates a direct channel between the manufacturer or service provider and the end-user, which allows us to offer products and services that meet the individual preferences of the target market.
3) E-commerce allows suppliers to be closer to their customers, which leads to increased productivity and competitiveness for companies. As a result, the consumer receives an improvement in the quality of service, which leads to greater proximity, as well as to more effective before and after-sales support. Thanks to these new forms of e-commerce, consumers now have virtual stores offering products like womens hybrid bike and a lot more. These stores are open 24 hours a day.
4) Cost reduction is another very important advantage usually associated with electronic commerce. The simpler and more convenient a particular business process is, the greater the likelihood of its success. This leads to a significant reduction in transaction costs and, of course, the prices charged to customers.
The main disadvantages associated with electronic commerce are the following:
1) Strong dependence on information and communication technologies. This issue is especially relevant to the international market. Not in all remote regions, there is high-speed Internet, which would contribute to the development of Internet commerce;
2) The absence of legislation that adequately regulates new activities in the field of electronic commerce, both nationally and internationally. This also includes a high percentage of fraud in the field of electronic commerce and the lack of effective methods to combat it.
3) Not all consumers are prone to e-commerce. For many customers, the ability to “touch” and visually evaluate the product is a key factor when buying certain products. The inability to fully appreciate the quality of the purchased item is the main factor holding back the development of electronic commerce.
4) Loss of user privacy and insecurity when conducting online transactions. With the development of security technologies, the risk of this factor is significantly reduced. However, losing your money when paying through the Internet is much easier than losing it by handing it personally to the seller in a store.
5) The threat of problems with the delivery of goods, clearance return, etc.
To summarize all of the above, we can only say one thing: “ e-commerce” continues to develop successfully, penetrating into the narrower specialized areas of trade. The future is with the Internet and technology. Perhaps in a few decades, users will no longer need traditional retail stores. And until this happens, you just need to know that e-commerce is a great chance to earn money and create your own business with minimal investment.