When you are in the retail business, it is all about selling your merchandise at the best price to make the most money. There are two main ways in which you can sell your merchandise. You can open up a brick-and-mortar store or sell online. You can also sell online while you have a brick-and-mortar store and many retail stores do. The one thing you need to do is look at the cost effectiveness of selling online as opposed to selling in the store. This will allow you to enjoy more profits for every item you sell. You will find that eCommerce allows you to maintain the highest profitability based on lower costs and increased sales.
eCommerce Lacks Property Fees
Whenever you have a retail location, you have to pay all the costs of having it. You need to worry about paying for being in a good location as well as all of the comp fees attached to the property for maintenance. Additionally, you have to worry about security and maintaining your store front. It is a lot of overhead you do not have to worry about when you have an eCommerce site alone. When you have eCommerce, you only need to worry about maintaining your website and having a storage location for all of your merchandise.
Employment Costs Are Much Lower
Another benefit you are able to enjoy when you are running an eCommerce site is you do not have to worry about paying high employment rates. You do not have to have employees on the floor to attend to customers as they walk in the door. Instead, you only need to have employees to fill the shipment orders when they come in. The eCommerce site itself is your biggest sales person and it is on call 24 hours a day. You do not have to worry about training anyone on a retail POS system or the concern about someone being hurt in your store. In most instances, you can run the entire operation with only the people running the site and a couple of people to fill the orders.
Savings for Customers Means Higher Sales
Best of all, when you have an eCommerce site, all of the money you are saving means you can charge less for the products you are selling. If you are charging the customers less, they are more inclined to purchase from you. If you can work out deals on the shipping costs, you can enjoy even higher sales. This is something you cannot do when you have to worry about the store and all of the costs associated with it. You will have to pay these costs no matter what. The big consideration when you have an eCommerce site is just how much profit you are looking for in your business in order to stay in business and maintain your customers. As you can see having an eCommerce site makes more sense when you want to enjoy better profits by minimizing your costs.