Traditional business is a local store that offers its services or products to its local customers. It is a set-up where customers will have to visit the store physically to buy the products. In traditional business, the infrastructure cost is very high. Renting & buying office is always expensive in offline business. You need to hire staff for sales, accounts, management, & security. Every business must maintain stock of the products he is dealing with due to which a huge amount of money remains blocked in business & its maintenance is very high.
Choosing the correct location for a traditional business is a very important aspect. Your store has to be located centrally so that the customers can visit easily. There is a time limitation for traditional showrooms i.e. from morning to evening & from Monday to Saturday only. There is very little space of showroom/ office that will limit the chances of expanding the business in the future.
Online business is one that bases itself on the internet & conducts its business through the internet. This could be e-commerce which is the selling of physical products online. Or it could be a website that makes money through advertising & affiliate links. You could even create a SaaS business; software that is hosted in the cloud meaning customers can sign up & use the software without needing a physical copy or downloading anything.
All of these online businesses are proven to be very profitable when done correctly. The reason people often want to get into online business is the ability to be your own boss.
Here are the Top 8 Reasons for Traditional Businesses to go Online:
1. Location is no more a Barrier
The location of business becomes an essential factor when we are selling products or services offline, & this leads to high fixed costs. However, when we sell products, online location is no more a barrier for greater visibility & high sales.
2. Lower Overhead Cost
Going online facilitates the business to operate in a short period with lower expenditure due to reduced overhead costs, & the costs associated with maintaining an office or store front.
3. Larger Customer Base
It gives a more extensive customer base to the even cornered businesses to reach customers digitally. Being online can increase the sales & profits faster as online businesses can be kept open 24x7. Moreover, products can be sold or services can be provided to any part of the world with websites using different languages.
4. Create a Market for a Niche Product
It's tough to reach customers with specific needs such as food for pets or PC for gamers. Creating online business helps in reaching the targeted audience using search engine optimization & keywords research. Businesses can then cater to their niche audience & improve their products or services based on the feedback of their customer base.
5. Scalability of the Business
Scalability is a challenge for many businesses due to the need for large office spaces & workforce. The scalability of the business becomes more effortless in online businesses with investments on automation, customer support, & sourcing of the few jobs to third parties.
6. Online Sales Discount & Branding
E-commerce page helps the retailer to organize sale online for launching premium brands or innovative products with steal deal offers, come up with various exchange deals or combo offers to grab the customer's eyes, & at the same time, create a brand for themselves.
7. Exclusivity & Customer Loyalty
Online Businesses with exclusive products allows business to offer something distinct to their customers. It helps to separate their products or service from their competitors. With private branding, one can create an image & have their own marketing identity. All this becomes easy when you have an online business that can offer these exclusive products & services to potential customers rather than targeting a huge audience that might not be interested.
Such things can promote more robust customer recognition with greater visibility & easy access to loyal customers along with boosting profit margins with exclusive products & service by controlling the entire value chain from manufacturing to delivery.
8. Improved Customer Service
Going online helps business owners to analyse their customer's grievances & accordingly customize products or services & improves customer experiences.
Truly said by Buckminster Fuller, a renowned 20th century inventor & visionary,“You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete.”
The quote held in the current scenario when there is a need for adopting tech software by all businesses not just to fight the pandemic but also to create a new robust model of online business at a lower price & greater sustainability. It’s time to move out of the traditional means of handling business & move into the future.
Check out Rupaiya One to take your Business Online.