While starting a new business venture, it is the most arousing topic for each and every businessman. Is it better to start a traditional business or an e-commerce business?
It will be helpful if we can first discuss traditional business then we will point some attention to the e-commerce business.
Can you explain to me what is traditional business?
It is a tradition for businesses to operate locally and offer their products and services to their local customers. It is a model where the customer will have to visit the store physically in order to buy the products.
The basic needs, framework, and costs of a traditional business can be summarized as follows: Ten years ago, there was only one option for individuals to begin a new career. The business was set up online all over the world, but their business was not referred to as e-commerce. Below is a list of some of the characteristics of traditional businesses:
A high infrastructure cost is one of the factors affecting the profitability of traditional businesses. For example, the cost of renting and buying office space is always very high for offline businesses.
There is a cost associated with employing staff, including hiring staff for sales, accounts, management, and security. Keeping stock is a huge investment: It has become mandatory for each and every retailer to keep stock of the products that he/she is dealing with and as a result, a great deal of money remains blocked in the business.
Limitation of Location: It is very crucial to choose the correct location as it will have a huge impact on the project. There must be a central location for your store so that the customers can easily reach it. Traditionally, traditional showrooms are usually open for a limited amount of time, such as from morning until evening, or only from Monday to Saturday.
It is very difficult to expand: In the future, the chances of the business expanding may be limited because of the lack of enough space in the showroom/office.
Activities & Expenses of Offline Promotion of your Business: Every businessman’s main objective is to generate profit, which means he or she must promote his or her products in order to increase the number of customers and generate sales and profits. Following are some of the ways that you can promote your business.
Your brand will be represented with business cards and numerous giveaways.
By hosting open houses, you can showcase your skills in infrastructure and real estate.
Print and distribute brochures containing information about your products.
Place newspaper ads, magazine ads, radio and TV commercials promoting your business.
Boost your brand and showroom with brochures, banners, and posters. See more about online businesses are more profitable than traditional businesses click here.
Using word-of-mouth to promote products and services.
Business representatives cannot afford to invest in radio and TV advertisements because they are more expensive. A company that sells goods and services online: It is not necessary to create elaborate E-commerce businesses in the present day. Those who are familiar with e-commerce and Internet shopping are well aware of the concept.
This is a business strategy where products are offered through web rooms at a special price, promotion price, or discount. The widespread use of smartphones, laptops, and desktops is leading to a shift away from offline businesses to online businesses. The e-commerce industry has now become a necessity instead of an option in today’s world.
Establishing a successful e-commerce business requires the following steps: Those who want to start an online e-commerce business must follow strategies different from traditional businesses, such as, Online selling requires website design. It is among the most expensive parts of the process. There is no need to purchase office space, rent or invest in infrastructure for online business.
It is not necessary to keep all products in stock initially; you can place orders after receiving products from vendors. To ensure that the product is delivered timely to the customer, you will also need to partner with different shipping agencies (DHL, FedEx, DTDC, etc.). Additionally, you will need to integrate payment gateways (CCAvenue, Paypal, PayU, etc.) to accept online payments from your customers. With online shopping, you’re just a click away from your favorite store. Online shopping is easier than visiting an offline store. You don’t have to worry about your location.
The online rooms are available 24 hours a day. Customers can buy products at any time. You can expand your online business globally without requiring the physical presence of customers. E-commerce provides better customer service since you are in direct contact with your customers. E-mails and live chat can help you answer their questions faster.
A merchant does not need to invest much money to start an online business since free eCommerce platforms are available that provide free eCommerce stores.
Promoting e-commerce businesses and their expenses:
There are various ways to promote your online business Would you like to improve your online brand reputation? Blog on your website and update it regularly
Subscribed visitors should receive a newsletter and Spread the word on social networks Online marketing, also known as digital marketing Pay-per-click advertising on Google, Facebook, and affiliate marketing.
What is the most beneficial business?
Since it has captured huge market share in the world, we would prefer you to go with E-commerce Business since there is very little scope for Traditional Markets or Businesses.
Factors associated with risk:
When it comes to the risk factor, we would say traditional business is more risky than e-commerce. The cost of setting up a website and marketing it is high for online businesses. There is no need for you to keep the products in bulk at your offline store.
A small investment can result in a greater return on investment (output) in E-Commerce.
There is no guarantee of return on investments made in traditional business.
It is therefore more advantageous to choose E-commerce over traditional business.