Advantages and limitations of e-commerce

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E-commerce represents a revolution in the sale of products that presents important strengths, but also weaknesses compared to traditional commerce. Let's look at them in detail:

Advantages of e-commerce
Customer convenience : An e-commerce business has no opening hours. Being able to buy at any time at any day means enormous flexibility. Customers also save money (and time) on travel and find it easier to compare prices from different suppliers in a short time. All they have to do is log on to the respective websites.
Cost savings : Not having a physical location means considerable cost savings: rent, maintenance, etc. An e-commerce website also has its own costs (web hosting, shipping, etc.) but they will usually be lower. This cost reduction, when combined with a good customer base, can translate into a greater margin for lowering prices while still making a profit.
Scalability : Imagine that you suddenly have many more customers than usual, cayman islands phone number list either because of a special date or simply because of a successful conversion. In a physical store you would have to make considerable investments to serve them all (new premises, more staff, etc.), while in an e-commerce business it would be much easier to adapt to the new size.
Automated and personalized marketing : The digital environment of e-commerce allows the use of marketing automation techniques that significantly improve traffic acquisition and conversions. By tracking the behavior of each prospect (for example, what type of content interests them the most or what type of emails they click on), you can send them personalized messages that adapt to their preferences.
Limitations of e-commerce
Initial lack of trust : Although e-commerce allows you to cultivate relationships with customers through lead nurturing campaigns , these only take effect in the medium and long term. In their initial impression, the e-commerce user is faced with a product that they cannot touch and can only see in photos. It is important to mitigate these limitations with detailed images, detailed product descriptions and, if possible, a live chat where you can resolve user queries.
Reluctance of certain types of customers : The Internet is part of our lives, but not for everyone in the same way. Some people, such as the older public, are not familiar with online payments and may feel insecure when giving out their bank details. Another common fear is that they will not be satisfied with the product when they receive it. An SSL certificate (https protocol) and a clear exchange and returns policy can help alleviate this lack of trust.
Greater competition : Lower initial costs than in a physical store are a two-sided coin, as they also translate into fewer barriers to entry and, therefore, more competing companies in e-commerce.
Medium and long-term results : The Internet is a “busy shopping mall” and it is not always easy for your target audience to see the store you have just opened. Attracting traffic to your website and converting it into customers will take time. However, in the medium and long term and with a good strategy, digital marketing offers effective resources to establish long-lasting relationships and build customer loyalty.