There is no doubt that e-commerce business is one of the most preferred options over domestic trade today. E-commerce websites have become increasingly popular, and this is proof that many people are getting hooked to the online world of business.
When running an online business, you need to register it with Dealstream and join the right bandwagon to operate successfully. This is because the online world is ever changing, and you need to keep up with the latest trends. While e-commerce offers amazing perks, there are also a number of drawbacks that come with this type of trade, over a domestic one as discussed below.
Lack of personal relationships/personal touch
E-commerce business lacks physical touch. Not all domestic businesses maintain a personal touch with their clients. However, this is an important part of any business as it is reassuring, refreshing, and it is a way of caring for your clients. E-commerce doesn’t value personal touch in negotiations and in carrying out transactions.
Due to the lack of personal touch, building trust with clients often takes a longer time. This is a huge challenge, especially to new e-commerce businesses.
There are goods that cannot be accessed online
The internet offers a platform where you can purchase almost anything. Even with such convenience, there are many goods that you cannot purchase on e-commerce shops. Odd sized items and highly perishable goods cannot be purchased online efficiently.
Even if you manage to purchase odd sized items online, you incur extra transport expenses. The cost of logistics is, therefore, a major factor that makes the purchase of certain goods online unbearable.
You cannot check on product quality
One of the major benefits of a domestic business is that you can test and have a feel of a product before your purchase. Whether you are buying a mattress, a pair of shoes or a music system, you can always test it in a domestic shop. However, in e-commerce, this is not possible because everything is done online. This means you can never be sure of the quality of the product you are purchasing until it is delivered to your doorstep.
E-commerce delivery takes days
E-commerce delivery takes a number of days. It doesn’t have the convenience of purchasing a product and going home with it on the same day. In the event of express shipping, you still have to wait for some hours, or a day to get your products.
Similarly, it takes more time to ship products from a different country. This means that if you wanted to use the items urgently, you have to order weeks or months earlier.
The only exception to this kind of delay is when you are ordering for digital items such as music files and eBooks. They are readily available online.
One of the growing problems associated with e-commerce is lack of enough security. Credit card fraud is common, and it results in bad reputation, penalties, and loss of revenue.
Similarly, there is IT security related issues in e-commerce. Business, clients, and organizations have fallen prey to hackers who have stolen money and valuable information from databases. Such issues attract legal implications but even worse, it affects the reputation of an e-commerce store.
In addition, there are technology hiccups that often pose security threats to e-commerce businesses. In the event of a downtime, substantial loss of data and revenue can occur if you do not have high tech backup options. This can lead to client dissatisfaction and major losses in your business.
Complexity in business regulations
Running an e-commerce business means you adhere to strict tax regulations within your state and the countries you operate in. This generates accounting and taxation complexities that lead to extra expenses when running your business.
While E-commerce has amazing perks, learning about these drawbacks will help you to work on ways to overcome them. This will enhance your chances of running a smooth business.
Viola Ron is a seasoned freelance writer. She has a passion to research and write informative articles on different topics. She loves quality content. When not writing, Viola loves to travel, read and go on an adventure with family.