An online retail business is an easy way to begin promoting specific products that you’re passionate about. You can let the general public know what you have to offer, how much those products happen to be, and when they can expect to have them shipped out. Online retail businesses like Amazon or Zulily, which are exclusively online, prove that the brick and mortar store doesn’t have to be the only place to get the stuff people need.

Are you thinking about increasing the presence of your business? Do you have a new product you’d like to get people to know about? Here are the pros and cons of an online retail business to consider so that you can make a choice that works best for your needs.

Here Are the Pros of an ORB:

* IT GIVES CUSTOMERS THE CHANCE TO EXPERIENCE INSTANT GRATIFICATION AT HOME:

The whole shopping experience is about the instant gratification that comes when you solve a problem you’ve got. When a customer has the chance to click a “buy” button at home, they get the gratification in knowing that they are about to save time, save money, or make their lives better in some way. The time it takes to ship the product just further increases the anticipation that is experienced.

* IT ALLOWS YOU TO RUN LOWER INVENTORY LEVELS:

This is especially beneficial for the small business owner. If you’ve got a high level of inventory when tax time comes around, then you’re going to take a financial hit based on the value of that product. An online retail business allows you to run with lower inventory levels without compromising the levels of service that you’re providing so you don’t have to take this financial hit as often.

* DISCOUNTS AND NOTIFICATIONS:

Online stores want to keep you as a customer, so they may offer deep discounts, rewards, and cash back if you sign up for their newsletters. This can keep you updated on all the best upcoming sales. Coupon codes-like the ones you can get from coupon code sites-are also extremely popular when shopping online.

* INFINITE CHOICE:

Shelf space in a physical store is limited, which means the variety of goods is limited. This isn’t true with online stores, where choices are abundant. If you don’t see what you want at one store online, move on to the next one. As the consumer, you have the power to do that.

* ZERO PARKING STRUGGLES:

Finding a parking spot can be a big reason you don’t stop at a store. Especially around the holidays, there’s a major benefit of no congestion when shopping online. When it’s really busy, you might not even remember where you parked your car!

* YOU GET THE CHANCE TO COMPETE GLOBALLY WHILE STILL STAYING LOCAL:

An online retail business can literally be run from a home office that has a garage large enough to store inventory. You can even offer global shipping options if you wish for a wide variety of products without needing an export license [though there are products that do require additional licensing]. Even if you don’t want to go global, you can still reach new demographics of customers without the same level of effort a traditional store typically faces.

Here Are the Cons of an Online Retail Business

* CHARGEBACKS ARE MORE COMMON THAN IN PERSON:

It is rather difficult to verify a person’s identity online even still today. Although this negative aspect of an online retail business has improved over the years, it is still easier for a customer to have a successful chargeback even though you’ve shipped out your products to them. Even when you insure a package or require a signature, the credit card agency may rule against you and refund the payment, leaving you with a loss of product and a loss of income.

* SEARCH ENGINE PENALTIES CAN DRAMATICALLY REDUCE THE AMOUNT OF NATURAL TRAFFIC YOU RECEIVE:

Many products that are sold retail are required to have a specific item description assigned to them. When there could be dozens of retailers online that are selling the same thing you are, the search engines are forced into a canonical conundrum. Which pages are the best? Most important? Most valuable? If your page doesn’t come out on top, then you might be completely forgotten about through canonical penalties.

* YOU CAN’T ALWAYS TALK TO SOMEONE IMMEDIATELY:

If you have a question about what you’re about to order, or what you just ordered but want to return, you may have to wait a full day or longer to get your question answered. This situation is improving, however, as many sites have added an instant chat service or automated bot-answering screen to address concerns and answer questions on the spot.

* SHIPPING COSTS:

Depending on what you buy, you could spend the same amount on just shipping costs, or sometimes even more. In-store shopping has no need to charge extra for shipping.

* PRIVACY AND SECURITY:

Privacy and security are legitimate concerns for any online shopper. Your payment information could get stolen from the site, or someone who works there could copy your bank details and use them later on their own purchases. It’s also hard to immediately recognize whether an online store is real or just there to scam you.

Published in The Daily National Courier, February, 21 2023

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