Ecommerce Pros and Cons (TIPS!)

Ecommerce Advantages and Disadvantages: How Oberlo Can Help With Your Dropshipping Business (TIPS!) So, you’ve been thinking about starting
your own online business – that’s great! But, perhaps you’re still unsure whether
an ecommerce business is the right option for you. Don’t worry, it’s Jessica Guzik here with
Oberlo, and today we’re going to go through our list of advantages and disadvantages to
getting started with your own ecommerce business. By the end of this video, you’ll have all
the information you need to make the best decision for you and your future business. Are you ready? Let’s get started! Welcome to the Oberlo YouTube channel, where
every week we’ll be discussing everything that goes into starting, operating, and scaling
your own dropshipping business. If you have any questions, let us know in
the comments section below – I read through every comment. Like I mentioned earlier, I’m the host for
this video, Jessica Guzik, and if you’re interested about what we’re discussing here,
consider subscribing, so you can get new videos every week. Let’s kick off this video by noting some
of the positive aspects of starting an online business. Advantage 1 – Low Financial Cost Generally, ecommerce businesses cost a lot
less money to start and run than a physical storefront would. If you were to get started with your own physical
retail store, you’d likely have to commit a large amount of money to renting and renovating
a location, renting storage space, and purchasing the products you hope to sell. When you’re running an ecommerce business,
you won’t need to commit such a large upfront investment before you can start selling. Instead, you can use an ecommerce platform,
like Shopify, to set up your own store (with custom designs) for less than $100 dollars. Of course, you’ll incur monthly fees for
your Shopify subscription, but this will likely be very cheap compared to what it would cost
to upkeep a physical location. In addition, if you’re using Oberlo, you’ll
never need to worry about spending money on storage space, as the products you sell will
be shipped directly from your supplier’s warehouse to your customer’s door. Advantage 2 – 24/7 Potential Income Unlike physical retail stores, ecommerce stores
are always open. This means that you have the potential to
generate income 24 hours a day, 7 days a week. Think about it. When you’re running an online store, it
doesn’t matter when your customers want to shop – the choice is in their hands. Your marketing campaigns will be running all
day, so they could make a purchase at 4pm in the afternoon, or 4am in the morning. Now, compare this to physical stores, which
tend to be open from 9am – 7pm. It’s clear that ecommerce entrepreneurs
have so much more time every day to generate sales. Advantage 3 – Sell Internationally From the very first day that you launch your
ecommerce store, you’ll be running an international business. You can sell to customers in every corner
of the world, if you want to. Or, you can just sell to customers in one
country – maybe even your own. The choice is yours! If you decide to run a dropshipping business,
it’s a great idea to take advantage of the ePacket delivery method too. It’s a great way to ensure that your customers
receive their products as quickly as possible. And if you want to learn more about ePacket delivery, click the card above Advantage 4 – Easy to Showcase Bestsellers When you’re running an ecommerce business,
it’s fairly simple to showcase your best-selling products to potential buyers. You can create custom graphics to promote
them on your stores homepage, build a dedicated category for them, and curate marketing campaigns
to promote them. Your best-sellers are proven products from
your store, so lots of customers will be interested in them. They also say a lot about your brand, so ensure
that they’re easily visible for visitors to your online store. Advantage 5 – Can Encourage Impulse Buys One great thing about eCommerce stores is
that you can encourage customers to make impulse buys. If you provide them with an attractive product
page, some high-quality images, and the correct sizing for the products, they’re going to
be much more eager to buy. But, it’s the scarcity tactics that you
can use with your online store that will really entice buyers. You can add countdown timers to alert your
potential customers that a sale is going to end, or showcase that there are limited quantities
of a product that they’re looking at. These work to create a sense of urgency, prompting
your customers to click “buy.” If they’re interested in your products,
they won’t want to miss out. Advantage 6 – Remarketing Possibilities When you’re running an ecommerce business,
remarketing your products to buyers is a great way to generate more revenue. But it’s something that’s pretty difficult
for physical store owners. As an ecommerce entrepreneur, you can target
people who abandoned their cart while they were shopping at your online store. You’ve already done the hard part – you’ve
piqued their interest with your products, secured their interest enough to get them
to the checkout stage, but they dropped off for whatever reason. Maybe they were distracted at work, or their
kids needed help, and they forgot about your store. But – they were interested at one point
– so just send them an email to let them know that their product is still available. You’ll be surprised how successful this
tactic can be. Now, when you’re running a physical store,
this strategy isn’t really possible. It’d be the equivalent of running after
a customer who was browsing your store and shouting: “Hey, I think you forgot something!” Not many customers would respond by turning
around and going back into your store. Advantage 7 – Scaling Your Business is Quick Every entrepreneur wants their business to
be successful. And when that happens, you want to double
down on it. Eventually, you’ll find that you need to
scale up your operations to meet customer demand, or you’ll end up missing out on
potential sales. Now, when you’re running a retail store,
a lot goes into scaling your business. You’ll need a larger store, more storage
space, more products from your suppliers, more sales staff… the list goes on. It can end up being a lengthy process. And during that time, your business’ growth
might stagnate. On the flip side, when you’re running a
dropshipping store, your main concern when scaling your business will be making sure
that your marketing budget is sufficient, and that your ads are optimized. All in all, it’s a lot easier to scale an
ecommerce business. As you can see, there is a lots of reasons why starting an ecommerce store has advantages over starting a physical storefront. However, there are some disadvantages getting into ecommerce and in the interest of being honest with you, let’s talk about some of those disadvantages. Disadvantage 1 – If Your Site Crashes, You
Can’t Sell This is perhaps the worst part about running
an ecommerce business. If your site is down, you can’t make any
sales. And not only will you miss out on sales during
the time that your store was down, you’ll also damage the reputation of your brand. That’s after you’ve worked so hard to
draw in potential customers too, and they might never return to make that purchase. So, it’s clear that you’ll need a stable
platform to host your store, if you want to run an ecommerce business, like Shopify. If you use Shopify to create and run your
store, you can rest assured that your store won’t be going down any time soon. Their service will stay up and running, even
during peak shopping events like Black Friday and Cyber Monday. Disadvantage 2- Ecommerce is Highly Competitive In the world of ecommerce, popular niches
are much more competitive than physical retail stores. After all, you’re not just competing with
stores in the vicinity, you’re competing with all the other online stores in the world. With this in mind, you’ll need to make sure
that your store stands out from crowd. There are plenty of ways that you can make
your store unique. For example, you can offer hard-to-find, high-quality
products, you can launch engaging marketing campaigns, or you can build a relationship
with customers with fun social media accounts. We’ll leave some links in the description
with more videos and content that you can use to help give your store a competitive
advantage Disadvantage 3 – Shipping Your Products When a customer makes a purchase at a physical
store, it’s likely that they’ll be able to take the product home right away and start
using it. But, when shopping online, a customer might
not receive their product quickly, which could put them off making a purchase. It’s a disadvantage, but it’s important
that you’re transparent about your shipping times with your customers. Let them know when they can expect packages,
and they’ll be much more forgiving if the shipping process takes a little longer. A great way to counteract this disadvantage
would be to offer free shipping with all purchases. If you don’t charge your customers for shipping,
they’ll be much more likely to finalize the purchase, even if your shipping takes
a couple of days. The best part? You don’t have to lose money to facilitate
this tactic. Instead, you can simply incorporate the shipping
fees into the price of your products. This way your customers will love your service,
while you maintain the margins you need to make a profit. So, what do you think about the pros and cons
of eCommerce? Did we leave anything off our list? Let us know what you think in the comments
section below And, if you liked this video, be sure to hit
that subscribe button and turn on the notification bell. We’ll be adding new videos each week where
we’ll be sharing some of our best secrets on running a successful dropshipping store! Thanks for watching and until next time Learn Often, Market Better and Sell More

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35 thoughts on “Ecommerce Pros and Cons (TIPS!)

  1. Thanks for the content. As a content creator myself, I appreciate the work and effort that goes into providing value for free.

  2. I'm interested in the idea of drop shipping; however, the idea of peddling china-made products to unwitting people who wait 1-2 months to receive their order does not sit well with me. Are there North America based suppliers willing to work with drop shippers that you could do a video of or link information below?

  3. Problem #5 Returns and customers who take no blame on orders and expect you to eat shipping again in a return they just dont like.

  4. You made a reference to shipping only taking a couple day, where can you get products that would offer shipping that fast? I am only aware of Aliexpress and it has been taking every bit of 2-3 weeks and sometimes more for shipping times, even using epacket. My customers have not been very happy. I would prefer a US dropshipper to help with this issue, any suggestions would be greatly appreciated!!

  5. Hi, please we need a topic about other ways to make a 'unique store' and going out from the 'competition'.

    Thank you so much.

  6. Jessica, curious to find a person to review my site and provide feedback on how to improve. I am able to drive traffic through low-cost fb ads, but no conversion in two months. Being new to this I am sure I need to make improvements to site. Thanks, Bob

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