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Pros and Cons of Starting an E-commerce Business

20 December 2018 No Comment

The Growth of E-commerce     

E-commerce is growing by leaps and bounds, representing almost 10% of all retail sales and expected to grow by 15% every year. In fact, it’s projected to hit about $4.5 trillion by 2021. The numbers also tell us that 4 out of 10 purchases are made using an online channel.

If you’re thinking about starting your own e-commerce business, there are many high-potential opportunities online. However, just like starting a traditional business, there are also many risks involved. Before venturing into it, you need to be fully aware of its advantages and disadvantages. Here are the pros and cons of starting an e-commerce business:


  • There is huge customer reach

Your e-commerce business has the potential to reach thousands of customers on a daily basis, and you will never again be limited by location. In fact, almost anyone in the world can be a potential customer, if you’re able to promote your shop online successfully. Your customers are capable of making a purchase anywhere and anytime. Customers can complete orders 24 hours a day.

  • There are more opportunities to sell

There are numerous online advertising methods that you can utilize immediately in order to reach your target audience. For instance, e-commerce websites can give customer information using various formats which include demo videos, customer testimonials, reviews and etc. In fact, online advertising provides the opportunity to create a legitimate profit-making online business for many people, such as through the Click2sell.co marketing platform, for instance.

  • There are lower costs on both sides

On the merchants’ side, they no longer have to spend a lot of money on real estate, manpower, and the other expenses associated with physical stores. On the consumers’ end, they don’t have to pay for travel expenses in order to make a purchase and also save some precious time.


  • Security and privacy concerns

There is growing concern about credit card fraud as well as IT security issues. Many e-commerce businesses have fallen prey to hackers who have stolen customers’ personal information from their databases. Online stores have to invest heavily in sophisticated security systems and encrypted payment software.

  • Lack of in-store engagement

Nothing can still replace the personal experience that we get when we shop at brick-and-mortar stores. There is really nothing like speaking with a salesperson and being able to touch, smell, or even taste a product. Despite technological advancements, online shopping can only provide images and information on size, fit, fabric, or material, and sometimes it’s not enough.

  • Sole reliance on their websites

E-commerce businesses rely solely on their websites. If something goes wrong even for a few minutes, it can cause a significant loss in revenue as well as customer satisfaction.

Final Words

Since the e-commerce market is anticipated to grow considerably in the coming years, it seems like a viable option to start an e-commerce enterprise. However, it’s essential to take a closer look at its pros and cons before fully delving into this world.

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