WHY ONLINE BUSINESS HAVE LOW RUNNING COSTS
NOTHING QUITE LIKE ONLINE BUSINESS
There’s unlikely to be any industry out there that comes close to the low maintenance costs associated with running an online business. It’s partly due to the inherent nature of the Internet, which has already helped humans solve so many problems in the real world. The Internet and the online world facilitates many things to make our life all that much easier. Technology has assisted with the creation of many platforms on which you can build a fully fledged retail store off of - selling to a global audience. Ecommerce is our favorite online business model; you'll start to understand why in this blog.
SUPPLIERS HANDLE FULFILLMENT
Your suppliers will usually handle the order fulfillment part of your website, including all the headaches associated with shipping. As a retailer, your job is usually to just drive traffic to your website and provide as much value as possible to the customer. The supplier handles everything else, we believe it's fair to say that it's their job. This means that the costs for logistics are kept as low as possible. Finding trustworthy suppliers can be a challenge and we always recommend getting a referral (e.g. from online business owners who know what they’re doing) to avoid potential future problems.
BAD FOR MONOPOLIES
Advertisers, graphic designers, suppliers, etc. can be easily found online. Due to this fact, there can be fierce competition for your business. This usually drives prices for these services down and really helps your online business maintain its low cost nature - in alignment with our goals of maintaining a healthy profit margin for all products. On the other hand, a physical retail store might only have access to a local supplier, for example, who charges ridiculous prices for their goods and services. It’s best that you also seek advice on exactly which apps, platforms, and services to use for your website.
HIGHLY EFFICIENT PROCESSES
The nature of online business is that many processes can be automated and become highly efficient - resulting in low cost operations: marketing, order fulfillment, website maintenance, and more. It’s relatively easy to outsource tedious tasks and move on to the next website. This is quite different from owning a physical retail store, where there can be a lot more complications and inefficiencies that result in higher costs. Set your website up, build it, then automate it - as long as you set things up oriented around providing value to customers, your beloved products can receive the attention they deserve.
EASE OF ADVERTISING
An online business owner who has just begun their journey can usually start marketing with a few clicks of a button from their laptop or phone. Marketing strategies for online businesses, in the present day, are still pretty cost efficient. While a Super Bowl ad may cost millions of dollars to target a certain number of people, it can literally cost a couple hundred or less to target that same number of people. This helps keep costs low for advertising - probably the most important component of any serious website. We believe that it's a lot easier for the global audience to discover your website, than it is for the local community to walk past your website. Inflation and saturation can contribute to increased costs in the future, which is why we recommend starting your website as soon as possible.
BEST TIME TO START IS NOW
Actually, the best time to start an online business was yesterday. The second best time is now. The worst time? Tomorrow. The more you delay starting an online business, the more competition there's bound to be. It’s all about first mover advantage and building a solid foundation now, which can continue to benefit you in the years to come. Though, you can make your journey even faster by buying an optimized pre-built website among many other features - both of which we offer at HERE for one time fees.