Starting a business is one of the most exciting adventures for an entrepreneur. When you have physical products to sell, you typically have a couple of different options. You can open a physical store for your merchandise or use the internet to promote and sell your items.
Ecommerce — electronic commerce, or commercial transactions conducted online — is an extremely popular and effective method for operating a business. There are currently over 9 million ecommerce retailers around the world, 2.5 million of which are right here in the U.S., according to Etail Insights.
As with any type of establishment, running an ecommerce business has its advantages and disadvantages. Here are just a few.
Pros of launching an ecommerce business
- You can operate your business from anywhere at any time.
- Customers can access your business from anywhere at any time.
- Minimal startup costs are involved.
- You can enjoy low overhead expenses.
- You can sell your product nationwide or globally.
- You can create a personalized online experience for your customers.
- You can retarget potential customers through digital advertising.
Cons of launching an ecommerce business
- Since there is no in-store experience, customers cannot “try before they buy.”
- With the risk of website crashes, there is a chance your business can be inoperable for hours or days on end.
- The competition is greater, as customers can compare prices immediately.
- Customers must wait to receive their products.
- Many cybersecurity issues can arise when shopping online, including identity theft and denial of inventory attacks.
Whether you are an ecommerce shop or strictly brick and mortar, it is important to keep your business protected. To find the best custom-tailored insurance for your business, feel free to contact your local Rural Mutual agent.