Over-time, there have been many success stories which have risen from online companies. From such recognizable companies such as Apple to Nike, there are so many choices when selling products online, and believe it or not- there are endless tricks to help set-up and customize your online business without much effort at all. As with anything in our lives, there are pros and cons of an online store versus an actual shop. Below are some reasons why it may or may not be a wiser choice to set up your own online store.
The main cost of opening a store is rent and utilities, so it is an obvious choice to go online if you have the option. This will save you hundreds per month, or even per week- that can be better spent elsewhere. Second of all, there is no need for many, (if any), employees other than yourself, as your only source of income is through the internet and one person can do the books as a result of bookkeeping. Oh, and one employee means you receive more in your pocket at the end of the day too. The other major cost that you will avoid, other than rent, is not having to worry about shelves being stocked all the time, or do you have to stress about a place to keep overstocked items. You will not have customers walking down the aisles, so therefore you do not have to keep the shop stocked, neat and in orderly. In saying this, though, it is recommended to keep anything you store at home or wherever your goods are placed before they are shipped- in a well organized area that makes packing and shipping a smooth and easy process. Always be on the lookout for postal services that allow you to choose the insurance amount yourself that is offered by a local and reliable postal service carrier.
One cost that cannot be avoided whether storefront or online, are the initial start-up costs. These are things like materials, website design, internet, and other server costs. Then there is marketing, which is an ongoing cost, no matter what stage of the business you are in. Some secret benefits to owning an internet only business- includes the start-up process. As you do not need to go through approvals, and not nearly as much paperwork, an online store can be set up in a fraction of the time than that of a storefront. You simply need to choose a domain name and off you go. Furthermore, an online store gives you the benefit of creating your own work hours. Those positives are all good and well, but if you do not have any self-motivation and responsibility to run your own business, you will see a quick decline in your bank account, which will not be restored quite as easily. As a business owner, you must make sure the website is updated frequently and create your own marketing campaigns, discounts and event or holiday sales.
An added con is that an online stores' only way of advertising is through marketing, whereas a storefront is actually present in real life and people can walk in and make a purchase whenever the store is open for business. With an online store, you must rely on 3rd party marketing aside from direct marketing to further extend that word of mouth. Basically, an online store beats a shopfront in almost all aspects, but if you are not prepared to do the work required to set-up and maintain that kind of business, it will ultimately fail. The last aspect is form of payment. Most people online like it convenient to pay through credit card transactions but for most people living in the USA, source payment systems such as Paypal help insure they won’t get ripped off. This service is no different than a home based automated payment terminal that is a service offered to many online businesses at a fraction of the cost Paypal charges. This service is a must and will keep your online service charges to a minimum.