Sometimes we don’t have time or the inclination to visit a physical store. Or maybe we urgently need a product or service. Perhaps we find lower prices online for a product than in a physical store. Although there are many reasons, the result is the same: online shopping.
The benefits for the consumer are obvious: he doesn’t need to travel as much, can place orders anywhere he likes, can easily compare products, can view a summary of his order before placing the actual order, can create lists of products that he would like to purchase in the future.
What are the benefits for entrepreneurs when opening an online shop?
1. Low operating costs
Every business strives to maximize sales and reduce costs. Online stores have lower operational costs than physical stores.
The physical space is not required for stock storage.
Because the tasks that must be completed aren’t as numerous, the average number of employees is smaller.
Security modules are usually less expensive than alarm and security system costs.
2. More potential customers
The Internet is global and anyone can visit your site to place orders. Your target audience doesn’t have to be local. It can be global. Your payment system must be accessible to all. The ability to buy via SMS is one of the things that will set you apart from your competitors.
3. There is no need to keep inventory
It is possible to avoid the storage fees associated with inventory. DropShipping allows customers to place orders for products online. The supplier will then forward the order to the customer, and they will deliver the product to you according to your contract. You can customize the packaging and get the invoice in your company name.
If a multi-product order requires more suppliers, each supplier will process the order and ship it separately. If you are shipping by courier, the courier company will centralize all the packages and ship them together.
It is important that the courier company allows customers to pay with credit cards. The courier company should also announce the delivery date and time to the customer. This is because the courier company is an integral part of the company’s image to the customer. Parcel centralization is not possible for delivery by postal mail.
This is obviously not a good option if you’re the manufacturer of these products. For finished products, you have two options: rent a space, or pay a fee to a logistics company.
4. Online promotion has measurable results
I’ve heard it many times: One euro online is worth more that one offline. This is true for online promotion because digital marketing makes it possible to measure the results. Google Analytics and Facebook Ads Manager enable you to analyze the results of your marketing campaigns, as well as optimize them. This is something that is difficult or impossible offline.
You can also target the promotion only to people you wish to reach. Google AdWords, Facebook Ads, and similar tools let you select the audience so that your advertisement will only reach the people you wish to target. You can set up settings like age, gender and location. You can also choose the time and days that your ad will appear. You can also place ads on your website if there is enough traffic.
5. Online stores are cheaper to open.
You might consider opening an online store if you don’t have one. The costs for opening one are low. Online stores don’t require a physical location to sell products. Maintenance costs can be reduced and stocks may not be required. But, it is important to be aware of the legal framework before you register your company.