Ecommerce has many different advantages — from faster buying to the ability to reach large audiences 24/7.
Let’s take a look in detail at some of the top perks ecommerce has to offer.
Faster buying for customers.
For customers, ecommerce makes it possible to shop from anywhere, any time.
That means buyers can get the products they want and need faster without being constrained by operating hours of a traditional brick-and-mortar store.
Plus, with shipping upgrades that make rapid delivery available to customers, even the lagtime of order fulfillment can be minimal (think Amazon Prime Now, for example).
Companies can easily reach new customers.
Ecommerce also makes it easier for companies to reach new, global customers. An online store isn’t tied to a single geographic location — it’s open and available to any and all customers who visit it online.
With the added benefits of social media advertising, email marketing and SEO (search engine optimization), brands have the potential to connect with massive target audiences who are in a ready-to-buy mindset.
Lower operational costs.
Without a need for a physical storefront (and employees to staff it), ecommerce retailers can launch stores with minimal operating costs. And those that run a dropshipping business can even minimize upfront investment costs.
As sales increase, brands can easily scale up their operations without making major property investments or hiring a large workforce — this means higher margins overall.
Personalized experiences.
With the help of automation and rich customer profiles, you can deliver highly personalized online experiences for your ecommerce customer base.
Showcasing relevant products based on past purchase behavior, for example, can lead to higher average order value (AOV) and make the shopper feel like you truly understand their unique needs.
Access to New Technologies.
With a physical store alone, you may find your options are limited when it comes to innovation. However, as the ecommerce ecosystem continues to mature and improve, your business will have access to the latest technologies to help streamline business processes.
With a variety of apps and integrations at your fingertips, you’ll be able to improve workflows, better execute your marketing strategy and improve the overall shopping experience.
Disadvantages of Ecommerce
Although modern ecommerce is increasingly flexible today, it still has its own setbacks.
Here are some of the downsides to ecommerce retail.
Limited interactions with customers.
Without being face-to-face, it can be harder to understand the wants, needs and concerns of your ecommerce customers.
There are still ways to gather this data (surveys, customer support interactions, etc.), but it may take a bit more work than talking with shoppers in person on a day-to-day basis.
Technology breakdowns can impact ability to sell.
If your ecommerce website is slow, broken or unavailable to customers, this may impact your ability to make sales. Site crashes and technology failures can damage relationships with customers and negatively impact your bottom line.
No ability to test or try on.
For customers who want to get hands-on with a product (especially in the realm of physical goods like clothing, shoes and beauty products) before adding it to their shopping cart, the ecommerce experience can be limiting.
