Ebusiness has completely changed the way we buy. You’ve probably experienced some advantages of ebusiness as a consumer, but if you’re thinking about starting your own online business, you might be wondering what the benefits of ebusiness are. Below, we list five advantages of having an ebusiness.
1. Removes location and availability restrictions
The internet reaches across the world and spans all time zones. That means that when businesses take their operations online, they have the same capabilities. With a physical store, customers are limited by how close the store is and its hours of operation. Ebusinesses, on the other hand, are accessible from any area with internet access and are open 24 hours a day. Additionally, with mcommerce on the rise, ebusiness has yet another advantage: being accessible to anyone with a mobile device. Customers are only limited by their mobile network coverage, which goes practically everywhere.
2. Reduces time and money spent
With bills for rent, electricity, phones, and general office upkeep, expenses for physical locations can start to pile up. By taking your business online, you reduce or eliminate a lot of these overhead costs. Plus, things get a lot easier from a logistical standpoint, since one person can do the work of several people. Take mass communicating with customers, for example. Sending a bulk email to a list of customers is easier than sending out 100 direct mailings (paper, postage, staff, etc.). In addition to customer-facing processes, inside processes also become friendlier on the pocketbook when going online. For example, transaction costs are lessened, since there’s no need to hire a cashier when shopping cart software lets customers check out themselves. And if that’s not enough, ebusiness marketing is often more affordable too, as online advertising tends to cost less than traditional marketing channels.
3. Expedites customer service
When customers contact you, they want answers fast. Thanks to email and live chat software, ebusinesses have no trouble fulfilling that need. Plus, these flexible forms of customer service can extend past a physical store’s hours of operation. Ebusinesses also offer the convenience of delivering products straight to a customer’s front door—no need to brave traffic.
4. Shows you how to improve
When it comes to learning more about your customers, a physical store is no match for an ebusiness. With tools like Google Analytics, it’s much easier to access information on your sales and customers at no extra cost. Want to know how a product has fared over the past three months? What about how many returning customers you’ve had? Unless you’re doing some extreme record-keeping, you don’t have easy access to this kind of data with a brick-and-mortar store. This data gives insight into your customers’ buying behaviors and interests, which is invaluable to improving your business.
5. Keeps your business relevant
The internet is a big part of our lives, and isn’t leaving anytime soon. Opening an ebusiness keeps you in touch with what’s current: it levels the playing field and gives you the resources needed to compete in today’s increasingly digital marketplace. For example, having an online presence on social media is a big part of getting your name out there. To stay relevant, businesses need to consistently post content on these outlets that interest their consumers. What’s more relevant than the latest online sale or contest?
Final Thoughts
When it comes to ebusiness, both the consumer and the business reap the benefits. Being online makes a business convenient, accessible, affordable, and better equipped to help its customers—and when businesses are focused on benefiting their customers, everyone wins.
About Gracelyn Tan
Gracelyn Tan is a former Communications Specialist at Volusion. When not reading or writing, she's dancing, meeting new people, or winning staring contests with her cat.
View more articles by Gracelyn Tan
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User experience is a major component of web design. At the moment, the majority of internet activity is based on the interaction between the user and the service, whether it’s email or blogging.
Yet in the next few years as connection speeds move to warp speed we’ll start to take the humans out of the equation more and more, with a boost in machine to machine communication. The internet will become more intuitive, linking objects or “things” via sensors. This will give rise to the “Internet of Things” and it will change the way we do business.
Think about it - there are already numerous connected devices, from Fitbits to smart home security systems, and billions more are on the way. This will have a major impact on ecommerce in particular, so it’s important for entrepreneurs to take note!
Better management of inventory
The Internet of Things will most likely benefit those in the ecommerce industry by streamlining operations. To begin with, it will be easier to track and manage inventory. Products can be tracked in real time with the use of radio frequency tags and other sensors. This data can then be processed to alert business owners when they’re running low on a certain product or if another isn’t selling at all.
Orders can be placed to replenish stock automatically according to sensor-sourced data, saving time on inventory management overall. Many large retailers already make use of this type of system, including big names like Walmart, but it will trickle down to smaller businesses as well as the technology becomes more affordable.
New Internet of Things marketing opportunities
The ability of the IoT to track real time users of the ecommerce site can help entrepreneurs with highly targeted promotions. You’ll know more about your target demographics’ daily routines, shopping histories, and preferences, and can track them based on location and habits.
Improved efficiency
Another benefit of the IoT is the ability to improve overall efficiency while boosting sales. Deliveries can be tracked accurately, adjusting speed and route as needed with the use of GPS and sensors. Customers can access this same data so they know exactly where their orders are along the way. If you sell products covered by warranty, this can also be tracked via the IoT so alerts can be sent if a product starts to malfunction. Predictive maintenance can be targeted using data obtained from product sensors, so that products can be improved and repaired before a total breakdown occurs.
More intuitive websites
Major telecom companies like Nokia Networks are leading the way with the Internet of Things, which means that it will impact the way that websites and mobile sites are designed.
User experience is a major component of ecommerce design, but in the future as the IoT becomes more widespread you’ll also need to think about how the business will process data from various sources. This will lead to more intuitive websites, which can customize a user’s experience with new and more accurate data.
The IoT is already here to some degree, but as this technology grows both consumers and retailers alike will be able to experience more convenient transactions.