What is e-commerce in 2023? Definition, benefits, examples

Advantages and disadvantages of an e-commerce business

• Advantages and disadvantages of an e-commerce business
• Convenience & accessibility. E-commerce can occur 24/7; for this reason, it provides customers with the best in both convenience and accessibility. They can find what they need, when they need it, and directly from their mobile or desktop devices. This level of convenience and access translates into sales and revenue opportunity round the clock for ecommerce businesses.
• Increased selection of products. Retail brands have the flexibility to offer a wider selection of products through their online store online compared to their physical brick-and-mortar stores. Many retail brands also offer consumers access to exclusive inventory and promotional offers that aren’t available elsewhere.
• Lower start-up cost. Compared to traditional retail stores, pure-play e-commerce businesses can avoid a lot of upfront start-up costs associated with running physical stores such as rent, inventory, and in-store headcount. However, they can have warehouse costs and shipping costs.

International or cross-border sales opportunities. As long as a customers can place an order online and the e-commerce store can capture the revenue from the sale, then ship the product or service to the customer’s location, online stores aren’t limited by geographic location as brick-and-mortar stores are. An ecommerce store allows your business to reach more customers, globally — maximizing selling potential.

• International or cross-border sales opportunities. As long as a customers can place an order online and the e-commerce store can capture the revenue from the sale, then ship the product or service to the customer’s location, online stores aren’t limited by geographic location as brick-and-mortar stores are. An ecommerce store allows your business to reach more customers, globally — maximizing selling potential.
• Easily retarget customers online. E-commerce stores regularly use retargeting as a way to attract and retain existing customers, or acquire new look-a-like customers. With retargeting, you can either target your existing customers, or your most profitable customers with products that are similar to the ones they love, or complement their past purchases. Retargeting is also a strategy used by online stores to recover abandoned carts.
• Scalability with lower operational costs: As the customer base grows, brick-and-mortar retail operations are forced to either relocate to a larger location or expand their physical store footprint, all of which comes with significant costs. In contrast, an e-commerce platform can be equipped to handle high traffic volume and sales spikes, enabling an e-commerce businesses to scale with increased inventory and order fulfillment.