Why Ecommerce?
A Home Business Article Contributed by Alyssa Yerga
A Look at Ecommerce
You've heard the term ecommerce tossed about and maybe you have sort of an idea of what it is. The "E" has something to do with the internet, right? And the "commerce" has to do with buying and selling? Right. Ecommerce is simply selling things via the internet. Many retailers like Best Buy, Joann Fabrics and Victoria's Secret have websites where you can place your order and have the item delivered right to your door. Some businesses like Amazon.com or ebay don't even have storefronts.
You simply browse the merchandise from you home computer. As more and more people become familiar with the idea of ecommerce, the easier it will be for you to set up shop. With ecommerce, your small business idea could go global instantly.
Disadvantages of Ecommerce
o Ecommerce cuts down on customer interaction dramatically. Some business owners may consider that a plus, but if you're business requires a more personal touch, like customized floral arrangements, you may need to meet with customers face to face. There are exceptions to the rules of course, but you may find you personally aren't comfortable with the hands off approach of ecommerce.
o The start up costs of ecommerce businesses are lower, but they still exist. You may need to upgrade to a faster, more reliable computer. You have to have specific software. And most of all, you need a domain name, web-site, and a server. You may also need a website designer.
o Advertising your ecommerce business is going to be a great deal harder on the internet. You are literally competing with everything in the world: other businesses, pop-up ads, and attention grabbing headlines.
o Though you can reach more people with ecommerce, you also have to worry about shipping products out to them when they buy your products. The post office and other delivery systems continually work on ways to smooth the shipping process over, but it's still not as easy as a customer picking up an item, paying for it and walking out the door.
Benefits of Ecommerce
o Ecommerce means virtually no customer interaction. Some may see this as a disadvantage (see above), but if you're business doesn't require you to deal with people on a personal level, why do it? Chatting up customers and making small talk takes time and attention away from other aspects of your business.
o With ecommerce, the world is your customer base. People on every continent could want your product or service and now they'll have a way to obtain it. Ecommerce also makes you instantly competitive with bigger more established companies giving you the chance to bring in more money if you can offer your merchandise for less.
o By using ecommerce software you'll be able to use the information you receive about customer habits (like past purchases or items they've viewed) to make suggestions about other products they may like. If you're merchandise is competitively priced you can also offer side-by-side comparisons with other businesses.
