If you are looking for ways on how to make money on amazon in 2020, then you probably might already be in an eCommerce business. You don’t have to be an expert to tell that eCommerce has reshaped the modern marketplace and given chances for people to make money online.
While it is a dominant model, selling services or goods online comes with its own pros and cons as compared to traditional brick and mortar business. So as you prepare to make money on Amazon in 2020, which is an eCommerce style, it is important to understand the pros and cons of this type of business.
- It eliminates the need for physical stores and allows businesses to expand their base in customers: Apart from eliminating the possibility of long queues, the eCommerce sites offer a very big advantage for both the stores and the shopper who is not situated in an urban setup.
Even if you stay in a big city, e-Commerce will open up new markets which in the process, will allow you to develop a new business model that is geared towards expanding your customer base. Many businesses have found it successful in developing great search engine optimization for eCommerce, which ends up driving more traffic to their sites.
- Chances of your business saving money: Money which you could have used on utilities, rent, maintenance and other costs that are associated with physical stores might be eliminated and saved to expand your business. Your eCommerce can be opened throughout, 24/7 without the need to hire employees to watch over the store or protect the goods.
And since you are not confined to a certain shelf space, there is no limit to the number of items that you can sell online, with your stock in the store expanding exponentially. Though the physical products will need to be stored somewhere, it is cheaper to have storage space as compared to a shop for selling. There will be no need to worry about factors such as food, traffic and spaces for parking.
- Little or no overhead sale: Selling your products digitally comes with little or no overheads at all. Due to eCommerce, consumers are able to purchase videos, music or books instantaneously. Stores are in a position to sell unlimited copies of their items which are digitally stored without the need to worry about where they will store the inventory.
- Business scaleup is easier online than with physical retailing: When a physical store grows, you will need to plan on how you are going to serve customers base which is growing, in the small space. There will be a need for more employees to expedite checkouts, more gets on the floor in line forming, shoppers will tend to feel insecure and crowded.
Logistics become tougher with the growth of a business no matter the way you operate it. If you organize for the right logistic choice, your eCommerce business will be able to manage this growth in the customer base without worrying about the problems that are encountered in a brick and mortar store.
- When it comes to the supply chain, the benefits are shared between the consumer and the business owner: Consumers tend to like online shopping like Amazon platform because they don’t have to deal with cash, no worries about schedules, or wait in long queues. The same benefits are enjoyed by the entire supply chains which interlink businesses to eCommerce systems.
The procurement becomes transparent, faster, and there is no need to handle cash or currency. In the process, it becomes cheaper, easier to transact, with fewer opportunities when it comes to errors in accounting.
- The business is able to track logistics: Tracking logistics is the key to having an eCommerce company that is successful. When everything is digitized, it makes it easier for the business owner to collect data and ensure that numbers are crunched.
While you will be in a position to benefit from being able to know what you are selling best in your online stores, you can also afford to go about taking a risk on goods that are low volume.
For the conventional stores, they will only go about stocking fast-moving products but with the eCommerce, you are permitted to venture into products that are obsolete and include them in your catalog. Storage as far as an eCommerce business is concerned is cheap and display of the new products is as easy as adding an extra page on your website.
So if you decide that 2020 is the year to venture into eCommerce business, chances are that you are going to make a lot of money as there is a lot of saving in this type of business. You will avoid some of the costs that business owners of brick and mortar businesses have under their sleeves.