This is a long debate that has been going on for a while. Online Business has gained strong grounds recently. However, is it entirely true? Does the merits of online business outrun the benefits of offline business? Does the offline business have more demerits?
Every entrepreneur is entitled to their view on this. The business which seems profitable lies in the power of the user acceptability of the products. However the case may be, this write-up would provide unfiltered exposure to the debate. Stay tuned!
Offline Business
Offline Business is a business with one physical outlet or more. A benefit of an offline business is that you can physically see the inventory of the shop. These shops usually have an assistant to assist clients with goods description and price. An example of this is Walmart. Walmart has over 4000 outlets worldwide. It has outlets in 28 nations. Walmart occupies a floor of over 200,000 sq. meters. This store has over 2 million staff worldwide. The store raises a yearly income of $400 bn. The USA Walmart is one of the biggest stores in the country.
Advantages of Offline Businesses
Here are the advantages of Offline Businesses
1. Personal Relationship
When you have a store for customers, it will help you keep a personal relationship with your clients. It helps you establish relationships with your customers aside from buying and selling. You can offer advice to your clients regarding some items. Also, you can get to know and meet them. Do well to always ask about your client’s well-being and review some products.
2. Physical Inventory Stock
When you buy items from an offline store, it comes with another benefit clients can see products before buying them. The customer needs to see the goods physically. This comprises observing the shape and size of the product. The need to see, touch and feel a good ranks top of a customer’s satisfaction. Customers can also use that opportunity to ask you questions regarding the products.
3. No or Low Products Return Rate
People tend to never return goods they buy in an offline business. Customers always observe the texture or the fit of a product before deciding to purchase the products. Therefore, we can conclude that customers want to see the physical nature of the product before buying.
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Online Business
Online Business is the sale and buying of products. This involves the transfer of funds through electronic processes like the Internet. Online business can also be called e-commerce or ebusiness. The use of Amazon has led many entrepreneurs to open an online business instead of settling for an offline store.
In the modern age, the exchange of products for money has physically partially gone extinct. The rise of online business has shown that you can buy an item in the comfort of your room. Although, you need a steady internet connection to use this efficiently.
Types of Online Business
Here are the types of Online Businesses
Business to Business (B2B)
This transaction refers to the exchange of goods and services between businesses rather than consumers. Businesses can surf through the internet to get what they want online. They can get it by paying through an ATM or Funds Transfer.
Business to Consumer (B2C)
This transaction refers to the process when businesses sell their goods and services to their customers. There are many virtual stores selling goods to customers directly. Amazon is an example of a business-to-consumer (B2C) site.
Consumer to Consumer (C2C)
Consumer to Consumer is another kind of e-commerce site where fellow consumers sell to each other. These transactions are usually carried out through a neutral third party which offers a platform where both of them can trade. An example of this platform is OLX.
Consumer to Business
This is another kind of online business that allows consumers to allow their goods to be bought by companies. Companies can purchase these goods by offering bidding offers. This is usually termed as the opposite of Business to Consumer (B2C) Market.
Peer to Peer (P2P)
P2P is where two individuals sell items for an exchange without any mediator. The mediator is not also involved in the delivery. For example Airbnb.
Benefits of Online Businesses
Here are the benefits of Online Business
Low Operational Cost
The cost of running a business is typically low because people are not needed in the store. However, when it comes to sales workers may be required. But every other item can be automated.
Global Selling
You can sell to a wider reach. They can sell to a large number of people anywhere in the world. You can create a business niche for yourself and grow your brand easily. Make sure you sell quality products so people will give positive reviews. By doing this, potential customers would place an order for the goods and services.
Operation
You can carry out your business anywhere in the world. Online Business removes any local barrier any offline business may face. The benefit is that you can stay anywhere in the world and operate your business.
Conclusion
As stated at the outset, the benefits of Online Business have been viewed to outweigh the advantages of Offline Businesses. You have seen the merits and demerits of both businesses. You have also seen the types of Offline Businesses we have. Thanks for reading!
