Almost two decades ago e-commerce emerged from innovators’ mind to our computer screen. However back then our version of e-commerce was a poor dial-up connection and online billboards. Amazon and E-Bay were essentially our only source one-click ordering. However, technology has advanced tremendous lengths and individuals and businesses are taking this opportunity to wreak the benefits and earn more profit. Consumerism has drastically evolved in two decades and the internet is even more dominant in our lives. Due to the structural components of online shopping, its versatility is pushing it to grow substantially. In 2012 the average person is spending on average of $1250 on e-commerce and it is projected that those numbers will increase by 44% by 2016. E-commerce has developed in all sectors. This medium of shopping is successful and prevalent because it saves individual’s time. Now businesses and individuals acknowledge how beneficial online shopping is. Here are a few pros of e-commerce for both big business and individual merchants.
1) Pros of eCommerce – Cost effective
- Eliminates the cost incurred when setting up and maintaining a physical store front.
- It has a low operational cost because fewer employees need to be hired in comparison to a physical store.
- It lowers transaction cost because it saves money from the elimination of having employees interact with customers and take orders.
- You will also save money from credit card machines and possibly telephones.
2) Pros of eCommerce – Inexpensive to market and advertise
- Businesses can publicize products and services at a minimal cost.
- They are able to re-market, which is generating continued interest in the product through the use of online ads. Individuals who have visited a specific type of online site will have their online ads reflects those interests.
- They can successfully utilize social media platforms, which are often free. They are able to reach out to their potential customers through the use ‘likes” and “tweets.’ They can also utilize social media to establish a brand and build a reputation.
3) Pros of eCommerce – Ability to globalize
- Since there aren’t any geographical restraints they are able to open up to a broader customer base. The internet has made it easy for businesses to expand their niche market all over the world.
4) Pros of eCommerce – Separate barriers of commerce
- Individuals and small businesses can easily set up and conduct business on the internet.
- Encourages individuals like self-promoted artists can sell their work online.
Call our office today at 877.874.4673 for more information about our Orlando Business Insurance programs. Newman Crane will help you put together a comprehensive yet affordable plan to give you all the coverage you need from one of the nation’s most respected insurance carriers. We look forward to hearing from you.