The Advantages and Disadvantages of Ecommerce
I remember my mother used-to constantly test the water before she would put my little kid sister into the bath tub. Eventually my dad would say “Son, look at both sides of the coin when you start anything”. So here we are; mind printed and all happy to take the plunge but right before we do, a few primeval instinct tends to make us pause as well as examine both sides of the coin. The web will provide you with a fairly extensive list of relevant, irrelevant along with being some downright fictional summary of advantages and disadvantages of electric commerce. What I have done is to lay out the real issues that is going to aggravate or even delight you on a daily schedule. And so here goes:
The disadvantages of ecommerce
These typically consist of silly mistakes on the part of possibly the shop owner or even the customer:
1. Returned items – a huge disadvantage of ecommerce
Frequently clients misunderstand a description or even are simply in a lot of of a rush to bother reading the detailed product description. Consequently, an electrical item like a cellular phone charger that requires 220V of electrical energy and also meant for use when on tour in Asia, is bought for local use in USA and consequently returned usually accompanied with a nasty “this isn’t working” letter blaming the seller for marketing sub standard products.
2. Returned charging of bank card transactions – an irritating ecommerce disadvantage
Linked to above point, the purchaser will reject the charges. When that comes about, the charge card company won’t only overturn the credit but also levy a charge on your bank account. It was not the fault of yours however, you’ve got to shoulder it.
3. Data entry mistakes – silly mistakes that’re likely expensive
Glenn, the shop clerk entered the cost of a package of finest pears as $0.96 instead of $10.96. Over the next two days the store owner was swamped with hundreds of orders for Pears. The missing digit nearly wiped out the income for that month. Buddies swear they watched Allan the store owner laughing and crying simultaneously. Meanwhile Glenn, thanks to Allan’s generous heart, today he is in the packing section.
4. The search engine fog – the a big drawback of ecommerce
If you arrange a conventional shop at a visible location, you get noticed immediately and will have customers coming from the moment you are open for business. This’s not an advantage with ecommerce. In the virtual world, the sole place that matters is the place in the search engine’s search results. If you’re not on the first page of the search results then you’re relegated to the back alleys of cyberspace.
5. Could be just as costly – costs that are hidden are a major downside of ecommerce
True, you do not have to invest on utilities or staff or even for that matter, still on an office. But setting up an excellent online store requires a large amount of work that is hard by professional people. First, they have to make you a great online retail outlet and then, it needs to be marketed by. The people who do it have to have specific skills and deep knowledge, both of that are costly. Successful ecommerce internet marketing of the online store results of yours in a good search engine rank. The drawback of ecommerce is, the second you stop spending on e marketing, the search engine rank starts to slip. In a brick and mortar shop you’ve to be charged premium rentals for a premium location. The equivalent of premium rentals for a web based retail store is the wholesale formula worth it (Ongoing) e-marketing.