Is An E-commerce Business Really For You?

Is an e-commerce business really for you is a question you probably asked yourself when you decided to start a business. Read on to learn about whether the e-commerce format is right for your business and its pros and cons.

Here are considerations you need to make to figure out if e-commerce will work for your business:

E-commerce is great if you’re selling a unique product not tied to a specific place and you want to tap into different markets fast. The e-commerce model is good for this business because it has low start-up costs and allows you to reach customers from around the globe.

An e-commerce business model is not a good idea if your goods are not unique because it will be hard to differentiate you from other sellers. A storefront might be better until you are big and successful because then you will have plenty of customers to choose you from other businesses.

Note that a website is still important these days even if you have a storefront because most people will still check for stores online. Your marketing will set you aside from other businesses. When you are starting out, it may be a good idea to hire a marketing firm to help you stand out from the competition.

The cost drives your decision whether to start e-commerce or a storefront business.

An e-commerce business will keep its overhead costs low but will require more investment in marketing.

A storefront business may be able to use e-commerce to supplement its income.

An e-commerce site costs more to design than a normal website because of the complexities in its design. The platform will require more money because of all the steps required along with company oversight from the web designers to keep the site functioning.

It’s best to do your research by asking your peers and checking the market to figure out what will work for your business.

It’s best to weigh the pros and cons of starting an e-commerce business before making a decision.


Easier Expansion

E-commerce allows you to expand your reach to customers further than your local areas. You can get customers from big cities or even neighboring towns with e-commerce. The added reach can also give you more income to expand your current business.

Save Money

An e-commerce store can run 24/7 without any employees needing to protect and watch items. It also eliminates the limit to the number of items you can sell at once since you are not limited to a shelf. Inventory can be stored at home or in storage spaces that are cheaper than retail spaces. Foot traffic and parking spaces also become non-issues.

Easier Growth

Growth when it comes to business often requires more employees and a bigger store to expedite the process and keep people happy. The logistics of growing can be a nightmare to deal with, but with an e-commerce model and the right third-party logistic providers, the company can grow without having to worry about space and employees.

Easier Communication

Getting the customer’s email allows you to send and receive messages easily. You can let customers know about sales, check-in to see how they are doing, and promote a new product with little effort. Any concerns they have can also be answered easily and comfortably through email for a more measured approach. Using cookies can also help you analyze customer behavior and adapt accordingly.

Easy Tracking

Digitizing your entire process eases crunching numbers and collecting data. You will easily know which of your items sell best and which ones don’t sell. The data you get from your sales can help you eliminate unnecessary costs.


Lack of Personal Touch

Plenty of people still want to talk to experts when it comes to purchasing products to ensure it fits their needs. There is no replacement for face-to-face interactions no matter which way you compensate. People also want to experience the item before purchase.


Your consumers are always at a risk of experiencing identity fraud whenever they enter their details in your shop. The people need to know and be convinced that your processing is secure, or they may not purchase from your site. Phishing scams and cyber attacks are a constant risk for your business.

Lost Gratification

Shoppers from online retailers have to wait for several days to get their items which removes the joy of shopping for some. Shipping is also difficult in case of refunds and can add to the cost of the item.

Price wars

The online retail industry affords you the chance to lower your prices, but unfortunately, everyone will do the same thing. Not having the lowest price can see you lose a sale, and even lowering your prices will see a dip in your profits.

In conclusion, the e-commerce business model is not for everyone, but learning about it can help you decide whether it is right for your business or not.