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The Disadvantages of E-commerce Business

This week, we wanted to let you know the disadvantages of choosing to have an e-commerce business.

Casey Carroll
17 Dec

Last week, we went over the benefits of having an e-commerce business. You can read “The Benefits of E-commerce Business” here. Although e-commerce has many advantages and is the perfect fit for many businesses, it also has disadvantages. 

It’s important to know both the benefits and costs of e-commerce, so you can make the best decision for your business. 

That’s why, this week, we wanted to let you know the disadvantages of choosing to have an e-commerce business.

We highlighted the main disadvantages for you:

The first disadvantage is that customers cannot try out your product before they buy it. When customers shop using an e-commerce platform, they will not be able to see and test products like they could in physical stores. With that being said, customer expectations may not be met when they receive a product. A product may not be what someone wanted, potentially leading to low reviews and ratings. However, this issue has been becoming less prevalent as more e-commerce businesses add augmented reality features to their websites. 

Another disadvantage of e-commerce business has to do with customers being impatient. Since customers are not shopping in person, they cannot have questions answered immediately. Shopping online also allows man, making response times slow. A good way to solve this is to make a detailed and updated FAQ page on your website. You also need to make sure you have good customer service and stay up-to-date on the questions and messages you are receiving. Additionally, shipping can take a long time. Customers have to wait for their products to be shipped instead of getting at a physical store right away. This could drive customers to buy in stores instead of online.  Plugins and 3rd party chat features from tools like Intercom and Drift are great ways to create a customer service experience that compares to, or even exceeds an in-person shopping experience.

Next, if there is a technical difficulty and your website crashes, no one can buy your products. No one will be able to buy or sometimes even see your products, allowing no purchases or impressions to be made. You need to make sure your website is hosted on the right platform and will not crash. Leading platforms like Shopify, BigCommerce, and WooCommerce are great platforms to ensure that you are building on the easiest and most secure platform for your business.

Finally, e-commerce is very competitive. There are endless e-commerce businesses that specialize in every field. Niche products are especially competitive in e-commerce. You need to make sure you are able to advertise your product well so it will stand out. This could cost a lot of money, depending on what market you enter. However, the money spent will be worth it if your product becomes the top product in a field!  E-commerce is an opportunity to truly compete in the world wide economy. Since you can reach customers from all over the world, a well-executed customer acquisition strategy means that you can sell far more than if you simply ran a local store.

We hope this blog was informative and will help you make the best decisions for you and your business!

Until next time, let us know if you have any questions or comments below!

Casey Carroll
17 Dec

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