Nowadays, e-commerce business happens to be the latest business trend. Most businesses are adopting the online business mode as it is a very convenient and hassle-free way of buying and selling products.
This is the era of the Internet revolution. E-commerce happens to be a trend evolving with time. This trend rose to popularity, especially during the two years of lockdown due to the covid-19 global pandemic. E-commerce is considered to be a very revolutionary way.
The world of the internet has made the trade process very easy and there is no doubt about that. It has helped a lot of brands to gain huge profits by selling their products all over the globe. But, we must know that even ecommerce business comes with pros and cons just like the other business models. Here, in this post, we will discuss with you all the major advantages and disadvantages provided by the e-commerce business model.
What are the advantages of e-commerce?
The e-commerce business model is on the rise as it offers a lot of advantages to both buyers and sellers. Let us first check out the major benefits that e-commerce provides to businesses.
It opens up a larger market
The online market is huge. The e-commerce business models enable sellers or traders to reach out to customers from all around the globe. Also, customers can purchase any product that they are willing to have from the comfort of their homes. This online marketing method makes it possible for both sellers and buyers to sell at any time and anywhere according to their convenience. Also, with the advancement in technology, most people now prefer shopping on their mobile devices.
Fast response to consumer needs and demands of the market
The online marketing mode is very beneficial for businesses who mostly opt for “drop ship,” the logistics. If it is properly streamlined, e-commerce enables these export businesses to respond to market demands faster. Moreover, e-commerce helps sellers to stay updated with the latest marketing trends and meet the demands of consumers in a lively manner. As an exporter, you can also use the best online promotion ideas and tactics to attract more customers and generate more sales.
Business Flexibility
The e-commerce model is the best business model for small businesses and start-ups. This model can provide great success to small-scale exporters. It is because the online business model enables businesses to gain more flexibility and reach a huge customer base from around the world. Exporters can enjoy various flexibility benefits when it comes to selling products online.
It provides access to customer data
Online selling can provide sellers with the details of their customers. And customer data is very essential to understand the exact needs and preferences of your potential customers. It will help traders or exporters to get an idea of what their customers would want in the future.
E-commerce allows businesses to keep track of their customer’s buying habits and use the information in improving their products and services in the future.
What are the disadvantages of e-commerce?
With advantages, there are also some disadvantages in the e-commerce business model.
No personal touch
The biggest disadvantage of the e-commerce model is that there is a lack of personal touch. When a customer purchases something from a physical store, they can see and feel the quality of the product. If they are purchasing clothes or other wearable stuff, they can also try them on in the trial rooms. But, online shopping does not provide you with that feature. Customers cannot get immediate customer service while shopping online.
Online shopping scams
The e-commerce sector has been evolving rapidly. A lot of scammers and fraudsters are now looking for opportunities to conduct scams on various e-commerce platforms. They make use of different techniques to place fake orders or steal money and goods from both consumers and businesses. There are a lot of e-commerce scams happening such as hacking of customer accounts, placing fake orders, etc. Businesses need to take all the precautions to prevent such scams and fraud.
Expert knowledge of online store management
An online store requires proper management. You will need to have excellent skills and deep knowledge to run an online store. Understanding all the aspects of an e-commerce business is very important for sellers if they are planning to grow and gain profits. When sellers try to operate their business in an e-commerce platform without having the proper knowledge, it may lead to various disadvantages for the business.
Customers are concerned about their privacy
Privacy concern is a major factor for anyone. And with the increase in online buying and selling, customer concerns are also increasing day by day. Some customers fear that their personal information might get stolen. Also, a lot of people do not feel comfortable sharing their details to purchase something online. This could lead to a loss for businesses that are dependent on the online selling mode.
Conclusion
Everything comes with its pros and cons, and the same goes for the e-commerce business model. With the new FTP 2023, our Indian government has introduced incentives to promote more e-commerce exports from the country. There are various government initiatives such as the EPCG scheme, Export House Certificate, and many more that have been implemented to encourage our Indian exporters to engage in global trade, be it online or offline.
