5 Reasons to Start a E-commerce Business (Rather Than a Brick and Mortar)

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Written by Adam Zientarski

The internet is king, there is no doubt about that. People from all backgrounds; rich, poor, black, white, purple and yellow have been flocking to the internet for years to stake their claim in the ever-expanding universe that is the world-wide web. While operating your business online does not provide the gratification of having the bells and whistles of a physical storefront, these 5 reasons might make you reconsider shelling out the big money for a brick and mortar business.

  1. Significantly Smaller Start-up Costs
    When you begin the process of starting a brick and mortar business, you will soon realize that the costs will add up. A building must be found and purchased or rented before you can even begin to purchase your inventory and other equipment. This start-up expense alone can suck thousands of dollars out of your business funds. Online store fronts with hosting, domain name, and design included can be purchased for a mere few hundred dollars if you only plan on making your online store a side business. The risk involved with an online store is insignificant compared to a brick and mortar.
  2. Minimal Overhead Costs
    At a brick and mortar business you must pay for rent, utilities, insurance, and payroll which will amount to thousands of dollars a month. The only necessary upkeep for an E-commerce business is the domain name and hosting, which will amount to less than $500 dollars in most cases. Client meetings can be conducted at the local coffee shop, restaurant, or hangout as needed eliminating the need for an office and it allows the other party to feel more comfortable at a neutral location.
  3. Your Audience is Endless
    With the invention of Google Adwords, a business can now bid on select keywords that they would like to show up for, and only pay when someone clicks on the link! This means that your business can potentially reach thousands of relevant customers in all regions of the world for a fraction of the cost of traditional television and radio advertising that only targets a small region of customers that changes the station on your commercial.
  4. The Internet Isn’t Going Anywhere
    Television and radio have been progressively moving to the internet for the past 5 years with the coming of popular online television services such as Hulu and radio services like Pandora. According to Internet World Stats the internet has grown from 0.4% world population usage in 1995 to 30.4% in 2011 (approximately 2.1 billion people). The number grows day by day and as third world countries develop new markets will emerge overseas.
  5. All Brick and Mortar Business Should Have Web Sites Anyways
    Having an E-commerce component or web site is a legitimacy factor. To acquire new customers it is essential to let them preview your business and get to know what you are all about. It only makes sense to develop your brand and identity online where it is cost effective and then expand to brick and mortar as business if it is common to your industry.

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