The main benefits of E-commerce over traditional shops
Today’s revolutionary technology has brought more than enough benefits for people to catch up with and adjust to their advantage.
With that in mind, just in the last few years, retailers have seen up to 60% higher conversion rates/sales on their online stores than their traditional shops.
Still, many retailers and business owners today hesitate to at least create an alternative online version of their store for various reasons.
Today, we will talk about the main benefits of E-commerce over the traditional way of doing business- physical stores.
Set-up costs and requirements
First and foremost, it is much easier, faster, and cheaper to create an E-commerce website than opening a brick and mortar store.
Let’s start with the legal basics, the part that will determine how much tax will you pay, responsibility for the debt, etc… Unlike traditional stores, an E-commerce shop, in most cases, does not have to have a legal structure/ to register the company, and therefore you can easily avoid paying sales taxes or any type of fees to the state.
Keep in mind, however, that if you DO have a physical presence related to your business, you may have to register a company.
Overall, it is much easier to settle up a constitutive act ( i.e. name for your company/website, licenses, permits, accounting, etc.) for your E-commerce site than for a physical shop.
As for the cost of set-up, a traditional shop does require a physical office, catchment area, and deposit that most likely you will have to pay rent for. Depending on your type of organization (i.e. L.L.C), you would also have to pay a significant amount for completing the registration besides other minor costs.
Regarding E-commerce, the process is much simpler. First, you must register a domain name (i.e. example.com), then, you have to find a web hosting company such as ourselves to provide you with hosting services (actually posting your website on the internet). Also, you will need an SSL certificate. All these services can be purchased at once for affordable costs from us.
Lastly, you need to build your actual website. You can either hire a programmer to build it for you or you can get pre-built templates from online platforms and design the website yourself. Each choice comes with its advantages.
Overall, the costs and all the work required are much smaller for E-commerce than for a regular shop.
Now, this is where all the difference starts to reach the surface.
Where an online website only deals with annual or monthly domain and hosting expenses, for a physical shop you have to deal with far more complicating matters. From rent expenses to business rates, accounting, utility bills, insurance, service charges, and so on.
Moreover, an online store can easily be maintained with a couple to even just one person, while brick and mortar shops need multiple employers to maintain the business and serve the customers properly.
On the same note, an E-commerce website stays open 24/7 without the need for someone to man the tills, something we can’t say about the other option.
Stock storage and accessibility advantages
If your business is focused on selling digital products and services, dropshipping, or serving goods to order, there is no need for holding any stocks and therefore you will be exempted from additional costs, locations, logistics, and headache overall.
Since your product accessibility doesn’t necessarily depend on a specific location, your customers can benefit from your products and services all over the world, with little to no restrictions unlike you would have with traditional shops.
Worldwide presence and marketing
It’s true that you have to continuously promote your E-commerce website in order for people to find it, unlike physical stores where they just pass by and find your store. However, there are multiple ways you can market your website at rather low costs to reach an even larger audience than alternatively.
Common free strategies and methods such as search engine optimization and email marketing allow you to catch the attention of people all around the world, contrary to traditional stores where you couldn’t do so without a web presence.
It is also much easier for you to find a market and sell niche products online if you promote them properly. Brick and mortar stores are limited to only selling what local people demand.
Now that you know what the main benefits of E-commerce over traditional stores are, it’s your choice to decide which way to go. Whether you choose to combine the two or to go just online, it is mandatory for you to have a domain and web hosting for your website to work, which is why we highly recommend you to check our website where you will find the best offers with the most affordable prices.