Modern technologies give business owners more options than ever to market and sell goods and services to consumers. The Internet can be a powerful tool for commerce where businesses can create their own websites and sell products and services to customers without the need for a physical store or office. Conducting business online can be advantageous in many ways, but it also may introduce some disadvantages.
Access to Customers
One of the main benefits of selling goods and services on the Internet is that it allows millions of potential customers to buy goods and services at any time. The U.S. Small Business Administration reports that 47.3 million North American households have online access, which means a company that sells goods and services online has access to a massive market. Retail stores can only serve customers in a small geographical area, while the Internet can reach customers all over the world. In addition, customers can purchase goods online at their leisure, so shoppers are not limited to making purchases during normal store hours.
Costs of Operation
Another potential advantage of selling goods and services online is that running a web-based store may be less expensive than running a traditional brick-and-mortar business. A brick-and-mortar business involves costs like rent and paying employees to sell products. An online vendor does not need to pay for a physical location where customers can go to buy products and services. Web-based companies can simply ship goods or deliver services directly to consumers.
Delayed Gratification
A potential drawback of selling goods and services online is that consumers may not receive their goods or services immediately after making a purchase. It takes time for an online retailer to process orders and ship products to end users. If a customer needs a certain item immediately, he may not be willing to wait a day or two for it to arrive and may prefer to purchase the item at a physical store.
Customer Relations
Another potential disadvantage of a web-based business is that it may be more difficult for an online business to form a relationship with customers. Consumers who frequent physical businesses may build personal relationships with workers and managers, which may make customers more likely to return in the future. In addition, customers may appreciate being able to talk to a real person face to face about problems that arise rather than having to communicate via email, instant messaging or over the phone.
