The network business has taken a leading position in the sales market. Large companies sell their goods through online stores and earn billions of profits annually. Thousands of online stores offering goods for every taste have settled in social networks. There is an explanation for this. In 1994, when the Internet became a public means of communication, Jeff Bizos came up with the idea of making the Internet a tool for promoting goods and services. Since then, the network business began to exist, and today it is an integral part of marketing.
In order to create your own online platform for the sale of goods, you need to know what features an online store has, what pros and cons a network business contains, and what tools you can use in developing an online project.
What is an online store
An online store is a site through which distance trading of goods or online promotion of services takes place. An online store can be located on a separate site or exist in the form of groups on social networks.
general characteristics
- A site offering goods or services that can be purchased online.
- The list of goods and services in the form of categories with prices and characteristics.
- The ability to pay for purchases online or in cash upon receipt of the goods.
- Delivery or pickup - depending on the format of the store.
Network business is considered one of the most profitable platforms for the sale of goods. However, getting a project to start making a profit is not so simple. To begin, consider the main pros and cons of creating an online store. We start, of course, with the benefits.
Pros of the online store
The network business is primarily aimed at making a profit and has a number of advantages. Consider the main advantages of online stores:
- Sales of goods bring a minimum of costs. No need to rent a room and hire staff.
- Quick profit. The more users visit the online store, the higher the profit.
- The convenience of the online store lies in the free schedule and the absence of an employer.
- Passive income is present. No need to spend online 24 hours a day to advertise your product to each client. It’s enough to correctly arrange the categories, and the client himself will be able to familiarize himself with the features of the necessary thing and place a purchase request.
The advantages of an online store are endless, but there are difficulties in creating and developing online trading.
Cons online store
If the advantages of the online store are obvious and are the first thing that novice businessmen pay attention to, then the minuses appear already in the process of work. Therefore, we consider the negative aspects of the network business in more detail:
- The need to register a business as an individual entrepreneur and pay taxes, otherwise a novice entrepreneur may suffer administrative or criminal liability. Here you can also indicate the need for mandatory reporting.
- High competition is what everyone will have to face in the initial stages of development of their project. There are almost no profitable sites on the Web that have remained undeveloped. Of course, you can try to develop less popular products, but if we are talking about high and stable profits, then this option, of course, is not suitable.
- Dependence on currency rates.If the business is based on the sale of foreign products, then any shocks in the financial market can play a cruel joke with the store, especially if the store has just opened and does not have stable earnings.
- The need for continuous development. The service market is growing steadily, so a novice businessman will have to constantly adapt to new customer requirements and analyze competitors' offers.
- Seasonality arrived. If the store is aimed at selling goods related to a certain holiday, for example, New Year, then there is no question of constant income.
The pros and cons of an online store is the first thing you need to familiarize yourself with in order to create a successful project. However, there is another point that every online shop owner should know, these are the tools with which the store will become profitable.
Online Store Development Tools
In order for a store to start making a profit, it is necessary that it becomes attractive to customers:
- Competitive pricing. The practice of intentionally lowering prices in order to attract customers is considered successful when it comes to a young store.
- The product range should be wide, perhaps it will contain offers that competitors do not have.
- Product specifications must be comprehensive. If we are talking about a clothing store on social networks, then a personal review with the attached photo of the thing will look advantageous.
- Feedback between the buyer and the store. It is better if the store has its own manager who can provide an answer to a customer’s question of interest.
- The choice of payment methods - MasterCard, Visa, electronic payment systems and the ability to pay in cash.
- Seasonal, pre-holiday discount system or loyalty program for regular customers.
The golden rule "any business requires investment" applies to the entire network business, and online shopping is no exception. Proper marketing is the key to the success of any project.
Development Tools:
- Store advertising through thematic sites.
- SEO optimization for search queries.
- Contextual and display advertising.
- Viral marketing - the distribution of interesting stories, videos and other content containing hidden advertising of the store.
- Mediation and affiliate program. If the store has a similar type of service with competitors, then you can agree on mediation.
In conclusion
The advantages of the online store are obvious. Convenience and ease of shopping, a variety of offers and loyalty programs attract a large audience of customers. Today everyone can try themselves in this business without big losses. But a novice entrepreneur should remember that any business is primarily a responsibility to the buyer and the state, therefore, before opening your own business, it is better to consult with specialists.