The Internet has certainly changed the way that business is conducted. By just having the ability to buy and sell products and services online, customers can now locate, compare and buy what they want faster than has ever been possible. Whether you’re new to running an online business or currently have a physical store and are thinking about moving it online, here are some good reasons why online stores are profitable and how they can give you a great return on investment.
Thanks to the Internet, the local convenience store isn’t the only place that’s open 24 hours a day, 7 days a week. When you have an online store, you’re also up and ready to go every minute of every day.
Your Store will Know No Bounds
Unlike having a physical store, online stores are open to everyone, everywhere. You suddenly transform your business from merely having a local presence to having a presence worldwide (and that means a whole lot more potential customers coming your way).
Suddenly your products and services will be exposed to the whole wide world, bringing increased awareness not only to your product, but also to your brand. This increased exposure will increase your sales, boost your brand, and in the long term, increase your profits as you continue to grow and create a credible reputation for yourself and your business.
Reduction in Cost of Sale Expenses
Another good reason to move online is that your direct cost-of-sale expenses for taking an order will be quite a bit lower than other traditional means, such as physical retail or paper-based orders.
Online stores give you the ability to easily accept payments online. Any collection of payments can be completely automated and immediate, and you can reduce or even completely eliminate any occurrence of bounced checks.
Lower Operational Costs
One thing is for certain: the operational costs in terms of having an online store is significantly less than having a physical store. With no overhead costs, a reduced amount of staff on the payroll and not having to worry about a number of other fees and expenses, online stores are extremely economical in comparison to traditional “brick and mortar” stores.
Reduced Advertising Fees
If you have an online store, you have to advertise online. The good news is, according to a recent report by HubSpot, online (inbound) marketing costs 61% less per lead than outbound (offline) marketing techniques, like direct mail and telemarketing. While you should be advertising a physical store online anyway, if you choose to only have an online store, you’ll save a bundle just by using inbound marketing techniques like adopting landing pages, using PPC (pay per click) advertising and SEO (search engine optimisation).