You should consider to start an online retail business. Brick and Mortar (Traditional retail) retailers are now urgently adding online retail channels to the businesses. Here are four reasons why:
Achieving economies of scale with an online retail business
Venturing online with a retail business offers a better chance to achieve scale advantages. Online retail businesses are not restricted – unlike Bricks and Mortar retailers that have defined audiences. Therefore they can offer their products to customers around the world. The increased sales because of the internet’s wide reach dilute the unit costs of merchandise resulting in higher profits.
Doing business anywhere at any time
Brick and Mortar retailers are bound to physical stores in demarcated areas. Online retailers, on the other hand, can do business using only their laptops or mobile devices. This gives them freedom to explore more opportunities. Equally can the customers of online retailers shop from any location at any time.
Low overheads and high margins
The costs are lower to start and run an online retail business. When starting a Brick and Mortar retail business, you need a lot of capital for rent deposits, to buy merchandise, hire staff, etc. Retailers that are only doing business online may make use of drop ship suppliers that will carry the merchandise on their behalf. Online retailers can also offer a wide range of products in different colors and sizes because they do not have to display them in Brick and Mortar shops.
Access to a world- wide market
The internet has no geographical boundaries and online retailers may therefore target niche markets globally to achieve larger sales. Customers with internet access anywhere in the world can search and purchase your products to have them delivered on their doorsteps.
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Note: Original article was published in http://www.entrepreneur.com/article/241759