Reason Why Online Business is Better than Traditional Business
The Internet has remained at the heart of every disruption for over a decade and the whole debate of online vs offline seems to have cooled off. Now that both consumers and businesses are maturing gradually, here are few reasons why online businesses are better than traditional business.
Low cost of operation
Out of many other reasons I can write, the one reason that has offered the online businesses a significant edge over the traditional ones is the low cost of operation.
The biggest hurdle of any brick and mortar business has been the high costs involved to own or rent the properties like shops and offices. On the other hand, many of the biggest e-commerce businesses have started from the comfort of co-founders comfy couches at home. Even though they are connected to physical industries like warehousing and shipping, the operation cost is a significant advantage.
Businesses without boundaries
We have seen traditional businesses like McDonald’s or Unilever have spread their wings across the globe over the years, but not all such businesses can achieve such tremendous success. But right from the start, all online businesses are global by nature just by being on the internet. Not only you can have customers from different countries and states, you can sell your products across the globe with the ease that online businesses provide. There are many coupon and deal sites also started targeting the global stores like Amazon, AliExpress, GearBest etc. to enhance their customer base.
Sell Digital & Physical Goods
Online businesses not only caters to physical goods but digital ones as well. Digital sales have virtually no selling limits, no physical storage needs and can be delivered instantly over emails. Amazon Kindle books are sold like cupcakes every single day.
On the other hand, online businesses offer platforms where buyers and sellers meet to sell virtually whatever they can like you can sell gift cards from Zingoy. And the sky is the limit for such rising platforms that offers a blend of products and services for a niche as well as mass markets.
Traditional businesses have been selling digital goods for over a decade in the form of CDs and DVDs, but the convenience of ‘instant delivery’ that online businesses offer is unbeatable.
Most traditional businesses rely on human resource, and if the work is skill based it becomes hard to acquire these resources and scale the business as fast. While online businesses also have a similar challenge when it comes to talent acquisition, being an online business they can work remotely with freelancers, international consultants, experts and offer their employees to work from anywhere.This added advantage helps online businesses thrive more when it comes to resource scalability.
If the business is web-based application or app or anything digital it can be scaled with high technologies virtualization and backed up with high reliability. And you don’t need a huge budget to code or host such digital products. You can throw your idea in the market and with growing number of customers you can scale your infrastructure and service offerings on the go. This kind of scalability is hard to think of in business that is physical and people-depended.
So in our my opinion, traditional businesses are losing their charm considering lucrative factors mentioned above, and trust me there are many more. Even though traditional businesses will always co-exist with online ones, If I have to start a business in this era, I would definitely go for the online business. What’re your thoughts on this topic? – Let us know in the comments section below!