Disadvantages and advantages: from online business that you must know

There are several types of businesses that are solely through online means. In establishing an online business, owners must go through the same procedures as traditional businesses, in formulating business plans, by compiling a mission statement and by handling other administrative matters. However, there are a number of advantages and disadvantages of online business in operating management, which is a worthy point to consider when you prepare your online business like when learning how to shop online for beginners. The advantages of online business are: 1. Reduce Costs The main advantage of having an online business is the cost difference when compared to setting up a traditional or offline office based company. Although there are costs associated with domain safeguards and website installs, this is very minimal when compared to leasing and maintaining physical buildings, learn also how to start an online shop business. 2. Reduce Staff Requirements Whereas in physical retail outlets the owners need to recruit a number of sales staff, with many online businesses doing jobs automatically. For example, buying goods online does not require a cashier to make payments: the buyer only enters the details of the card and the item is paid in minutes. 3. Wider range With online business, you can market your company on a global scale, reaching potential customers in other countries and continents. You must have a system in place to deliver your goods or services to this remote location. However, while physical businesses can only advertise to customers in the local area, having an online business means you can expose your company to a large number of potential customers. 4. Quickly connect Through the Internet, business owners and employees can connect with customers and other members of the community more easily than ever. Instead of having to contact or visit the store to get information about the product or service, customers can send an email to the store to get an answer. The growth of social media has given business owners another easy way to connect with customers, who can follow a business Twitter page or "Like" a business on Facebook. Shortage of Online Business Besides having some advantages of online business also has some drawbacks namely: 1. Impersonal One of the debatable disadvantages for the proliferation of the Internet in modern business is that some correspondence between customers and businesses can be impersonal. Before going to the Internet, customers who have complaints can contact the store manager and voice their concerns directly. When this person is now voicing his concern via email, he may receive a return form letter, which does not give him any satisfaction in dealing with humans. 2. Not Trying Before Buying Although there are a large number of items that can be purchased online without a doubt, there are other items, such as clothing, shoes, electronic furniture and gadgets, which consumers like or do before making a purchase decision. In the world of online retailing "try before buying" is not possible. Online retailers have tried to keep up with this by allowing users to review products and by displaying photos and videos of products in action, but there are still some things that are better bought or accessed by people. 3. Competition Online retailers have more competition in the Internet retail world. Although there is something that can be said about credible online companies, many consumers are looking for products and not so much with retailers. This means that retailers with an unproven track record may take part of your business.