Advantages and Disadvantages of Online Business
Now the world is changing toward a digital system and the world is now at a distance of one click from ourselves, and we can easily get all those things which we need by using the Internet. Due to these reasons, most people start up a business in an online system. While setting an online business system, the owner has to go through many procedures like in physical trading system means he or she has to set up a business plan or strategy, handle the security risk and administrative work. However, an online system has numerous advantages and disadvantages some of which are given below.
Advantages:
- Global Approach
In the Online business model, the owner of the business can easily approach people globally through the Internet. By making one website of business they can advertise their products globally as result maximum people can buy their products and they can increase the productivity of the business in a short period as compared to a physical trading system.
2. Reduced Staff Requirements And Cost
By using the Online business model the owner can reduce the staff requirements and their cost in their enterprise because they deal with a customer through the Internet.
3. Reduced Building Rent
Nowadays most entrepreneurs start their business by taking a building on rent. Due to this, they have to pay an extra fixed charge for the building. By using an online modal the owners don’t need to pay the fixed charges ( building rent) and variable charges ( staff wages).
Disadvantages
- Reduced Physical Interaction
Most of the customers prefer physical trading as compare to online due to which the productivity of the business gets decrease somehow.
2. Security and Fraud
In the online trading system, the business must have a good security system, so that no one can hack their website illegally.
3. Support System
In the physical trading system if a customer fond fault in goods of business after buy they can easily exchange that good or get money back from target retail shop. while in the online system the customer gets difficulty in coping with this problem due to which they prefer physical shopping.
Note: while the owner can reduce this problem by making well care system operation. In which they provide full facilities to customer resolve their problems regarding goods.