The Pros and Cons of E-commerce

E-commerce business

These days, exclusive trading through online methods is something normal to a lot of businesses. According to Shopify, overall e-commerce sales should reach $4.5 trillion by 2021. In setting up an online business, the business owner must experience a similar strategy as a conventional business. This strategy involves defining a marketable strategy, drafting a statement of purpose, and dealing with other administrative issues. 

Nonetheless, as much as there would be some positive sides to a thing, there may be some negative sides to it too, which cannot be ignored. Therefore, this article discusses the pros and cons of involving in an online business that has to be considered, maximized, and controlled.

The Pros of Online Business

The following are the four top advantages of e-commerce:

1. Your Expenses are Reduced

A physical store comes with the costs of structures, its maintenance, etc. However, when compared with an online store, the expenses are at reduced costs.

This does not imply that online businesses do not have their side of expenses, such as creating websites, securing the domains, cost of maintaining an online presence, and so on. Yet, it is minimal.  

2. You can Reach More Audience.

Online businesses grant you access to advertise what your company does on a larger scale. Using the website, social media platforms, and other marketing platforms, you can get to a large range of audiences that have interest in what you do. Distance no longer becomes a barrier for you to make people aware of what you do.An actual store can only cover a few grounds within their location through other means of advertisement like business cards, flyers, etc. All that is required for online businesses is to put a measure in place to ship your products wherever it is needed.

3. You Require a Reduced Number of Labor/Manpower

In an actual retail store, various sales staff recruitment is required, whereas numerous online organizations automatically do their work. For example, all you have to do in purchasing from an online store is using your credit card details, whereas an actual store requires an employee to get the payment done.

4. Your Sales Increases

Since online businesses allow the consumers ease and ability to get what they need from their house’s comfort. This convenience automatically makes the consumers keep coming, thereby increasing your sales. And according to Statista, 71% of consumers prefer shopping online to going to an actual store because it is easy and much more convenient. 

They can shop at whatever point they need and do not have to visit the store directly. Therefore, as much as they keep getting whatever they desire with convenience, they keep coming and become loyal customers.

Cons of Online Business

Aside from having a couple of points of the merits associated with an online business, there are also a few detriments, namely:

1. Inability to test before Purchasing 

Doubtlessly, many things can be bought online, but there are different things, for example, shoes, clothing, etc., that consumers would like to test or check out before settling on a purchasing decision. 

It is impossible to test before you make a payment in the online business world. Online retailers have attempted to make up for this by permitting users to review items, show photographs, and make videos of those particular items. Yet, there are still a few things that individuals better purchase with prior access. For instance, you may love a pair of shoes in an online store with your shoe size of 40, and you make payment. After delivery, you decided to check out your new shoe, only to discover the size 40 you ordered is too big for you. A return or refund might be impossible as the product is okay and the same size you ordered, just that it happens to be a large 40 size.

2. Reduction in Efficiency 

Please take a look at an actual store and its operations; they always have a scheduled operation period. You rarely see one that works round the clock.  Even if there is, it is done in shift operations. However, the internet is a day-in, day-out activity, which means your business is consistently open. You do not have a tome to open to store for the day’s activities or close it for a time to rest from the day’s job.

Therefore, it is expedient that caution is taken in dealing with the time utilized for your business to ensure maximum efficiency.

3. Lack of Credibility 

Since many online businesses are on the rise recently, the lack of integrity is the main issue among these businesses. Supposing there is an offline business with an actual store with a location, trust is a major factor easily built.

When issues arise with transactions, they have a location to hold on to. But with just an online business, they have got no location to track. And whatever issue they have may have to end on the internet.


Even though the essentials are a lot equivalent to what they are for operating a conventional business, there are certain advantages and disadvantages. Realizing how to use the former and control the latter is pivotal to progress. To be effective and successful in an online business, you should comprehend your strengths and shortcomings, putting you off guard on various levels if not controlled and maximized.

<strong>Daphne Hawkins</strong>
Daphne Hawkins

Daphne is a world traveler, blogger, and web entrepreneur. When she’s not brainstorming new business ideas or planning her next trip she enjoys giving back by sharing her knowledge through actionable guides.

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