The advantages of electronic commerce: the benefits of eCommerce – You have undoubtedly made at least one online purchase in the past month. Given that electronic commerce in Latin America is always expanding, there may have been more than one.
In fact, Statista projects that by 2025, e-commerce sales in the area would be valued at almost $160 billion. This indicates that an almost 88% rise in the headcount is anticipated by 2020.
These statistics prove that starting an electronic business is unquestionably a great idea. We will thus list the benefits and drawbacks of electronic commerce below so you can make the best decision for your company.
The main advantages and disadvantages of electronic commerce
Your traditional firm might take a whole different turn and develop significantly as a result of opening an online store, or it could start from scratch. However, it may also result in financial losses and a negative image among your clientele. We encourage you to read about the key benefits and drawbacks of electronic commerce to assist you in making the best decision for your business.
The main benefits of electronic commerce
These are some of the advantages of opening an online store:
It works 24/7.
By opening an online store, you can run your business around the clock without having to worry about finding employees who will be ready to serve clients at all times. It goes without saying that you need to set up a regular timetable for responding to all of your online inquiries!
Reach more places.
The potential for distance reduction is one of the main advantages of eCommerce for businesses. Your clients will be able to purchase your goods as soon as you launch your online store, regardless if they’re waiting to go to sleep in bed or traveling by bus.
Speed up sales times.
According to Semrush statistics, in Latin America, a person spends around ten minutes on average for each visit to an online store. Although a visit to your store does not necessarily imply a purchase, the fact that it can happen in less than ten minutes is unthinkable for many stores that attend in person. Mainly because with your online store, you can have several customers simultaneously without the nneedingmployee assigned to meet their different requirements.
Add new customers.
E-commerce offers your company access to a new market of customers, which is an additional benefit. Owing to the current COVID-19 epidemic, a lot of individuals prefer to purchase just online these days, and a business that can provide this option has an advantage over its rivals.
Show your catalogue easily.
You may display every one of your items in one location and at one time in an electronic store. This makes it easy and quick for your clients to compare the many solutions you provide. We advise you to take the time (and financial) required to ensure that the images you use for your articles are as accurate to reality as possible in order to do this. Don’t forget to maintain your catalog up to current with the available lockable!
It is an excellent opportunity if you cannot sustain a traditional store.
Assume that instead of operating a conventional store, your company focuses on informal product promotion. Then, an electronic store could be the best instrument for expanding in the industry. With a limited staff, small businesses find it ideal to save workloads by using just electronic platforms for shop maintenance.
It allows you to sustain a dropshipping business.
The ability to maintain a business model in which you act as a middleman between suppliers and customers is another of eCommerce’s many advantages for businesses. You may provide items with an electronic shop without having to keep them in stock at your location, which will save you money on upkeep.
The main disadvantages of eCommerce
Although, at times, everything that involves technological advances seems to be the best option for your business, this is not always the case. Unfortunately, having an online store has some disadvantages:
There is much more competition.
The ease with which an internet business may be created is one of the benefits of electronic commerce, but it can also work against us. We need to put in more effort because there are a lot of electronic stores in order for our items to stand out and for the most consumers to choose our eCommerce. This is why it’s critical that the platform you choose to build your online store is appropriate and has a properly integrated payment gateway.
Not everyone can meet the high demand.
In addition to Spiderman realizing that “great power comes great responsibility,” a small firm is unlikely to be able to handle the demand that a high-reach eCommerce entails. Nobody wants to find themselves having to use more funds to solve issues brought on by their inability to fulfill orders!
It implies an investment in digital advertising.
If no one knows about your electronic store, it’s pointless to open one. Creating more website traffic should be a major priority for you from the minute you make the decision to launch an online business. Expert assistance in digital marketing can even be required. It’s crucial that you remember that this procedure could not provide results right away, and that your investment might not yield returns right away.
Many users are wary of electronic payments.
There is still a segment of consumers afraid to deposit their credit card details on a website. Unfortunately, the number of scams that constantly occur on the internet feeds these insecurities. This is why the payment gateway you choose for your eCommerce must meet the highest security standards. We request you to learn more about the subject in our article about how payment gateways work.
The product cannot be tested.
Many customers need to personally see what they are about to buy before doing so; this is impossible to achieve with an electronic store. However, the largest electronic stores implement free return systems for any disagreement (without the need for product failures) so that users feel safe when making their purchases.
You may suffer technical failures.
When you start an electronic store, the platform you select will determine a lot about how your business operates. Often, you cannot predict when a system will go down or have an unforeseen malfunction. You have to be prepared to take this risk and have an action plan in place to handle the influx of questions that your online store’s collapse will inevitably cause.
When did eCommerce emerge?
In certain nations, the concept of internet trade began to gain some traction around the year 2000. Founded in 1994, Amazon, eBay, and Zappos in 1995, 1999, and 1994, respectively, were the first well-known firms in the world to enter the e-commerce space. However, not everyone is aware that the Coca-Cola business previously proposed to sell its goods in a vending machine that accepted text message payments in 1997. This service was unique because it introduced a virtual payment channel and presented a fresh idea of what a purchase could be, even if it was not the same as what we now know as online shopping.
In contrast, with the emergence of the Argentine unicorn MercadoLibre, eCommerce in Latin America experienced a significant surge. Since its founding in 1999, this firm has emerged as the top e-commerce platform in our area, and since 2010, a growing number of people from all walks of life have started to utilize online stores.
Conclusion
As we’ve previously seen, the data suggests that now is the ideal time to devote time and resources to creating an electronic store. Similarly, even with all of the benefits that come with internet commerce, trade theories are always evolving, and you need to stay on top of these developments to ensure that your business stays competitive.
Don’t be afraid to launch your own eCommerce if your business is doing well and you want to grow. It’s generally not the ideal choice, though, if your company is too local or you have a restricted market reach. To put it briefly, we urge you to keep researching and learning about the potential hazards associated with electronic business before making any decisions on changes to your current company model.