Three “Advantages” and “Disadvantages” to operate [EC site]

With the spread of the Internet, consumer’s purchasing behavior has also changed dramatically.

Nowadays, immeasurable tradings have been established on nets, and the number of companies that operate EC sites is also increasing. Here are some of the advantages and disadvantages of operating an EC site.

Two “Advantages” of operating [EC site]

Benefits of operating EC site will be discussed here.

1: Enable to extend sales areas

Unlike in the past when products could be only sold at actual stores, extending “Sales area” is possible by using the EC site. This is the greatest advantage of the EC site, and the consumer’s purchasing range has been extended as the consumers are able to buy wanted products via internet and no longer need to go to the stores. “Enabling to extend sales areas” is an advantage for both Operators and Consumers.

2: Enabling to operate 24 hours

There is certainly a restriction called “business hours” at actual stores.

Employees hiring is necessary to extend the business hours, and utility expenses would increase by all means.

“Disadvantages” of operating [EC site]

Advantages of EC sites has been explained above. Disadvantages of EC sites will be discussed here.

1: Difficulties of operation

Competition is intensifying day by day as many companies operate EC sites with full of benefits. Hence, it is so difficult to build a prominent EC site. It would take time to become a stable and profitable EC site. This will be discussed next.

2: Time consuming

Not only creating product pages on the EC sites but also adding advertisements and optimizing search engines for the product pages are necessary to do, so it would take some time to get results. In the worst case, it is quite possible that “there is no achievement despite spending time and money”.

3: Price competition occurs easily

To let consumers buy products from your EC sites, the advantages must be clearer than many other EC site. As “price”is the main criterion of consumers, “price competition” may occur when managing EC sites. You may run into no profit situations as a result of offering with cheap price.