Let’s start with the basic concept of eCommerce. Electronic commerce or eCommerce is a way of doing business online. This refers to the process of selling any goods or services online, buying them from an online platform, and any transactions being made online. This type of digital business is mainly of four types, i.e., business to business or B2B, business to customer or B2C, customer to customer or C2C, and lastly, customers to business or C2B.

Speaking of eCommerce, the number of online businesses is increasing day by day and the global merchants are being interested in this type of business. There are many reasons which let the merchants lean towards this digital business process, i.e., the ability to sell products 24/7, reach customers beyond Geographical borders with one click, be open to the wide global market for product sales, etc. But among them, the most strategic reason is that eCommerce reduces the additional cost for a business, that requires for the brick and mortar physical business setups. Hence, it is proved that adding an online presence to your existing business doesn’t need a high-risk investment, and it is a far better choice to create an online setup for your business than building another storefront at some other places.

How does eCommerce Reduce Business Cost?

There are many ways the eCommerce has a tendency to carry lower costs than that of the brick and mortar traditional business setups. Among them, I am depicting 5 ways eCommerce cut-offs the business costs in the following,

Creating an Online Business Platform is Cheaper than the Physical Offline Business Setup.

Creating a brick-and-mortar offline store for your business is too expensive. You have to hire an engineer to get the dimensions, then you have to contact the builders to build it, then for the decorations of your new office building you have to hire a designer, and lastly, you have to purchase the office equipment to complete the new office set up.

But for the eCommerce platform, you just have to pay a very little amount of money which is maybe $10-$20/month to purchase the hosting of the website. If you hire a good website builder team, they may charge you a little more but that will also be visibly less and pocket friendly than the amount you generally pay for your brick-and-mortar store for your business.

eCommerce Saves on the Office Utilities, Bills, and Monthly Rentals.

If you are doing your business from your brick-and-mortar store, then you should have faced charges like monthly electricity bills, monthly water bills, as well as monthly rental for your office space, even there are costs like maintaining the whole workplace, its equipment, and decors.

While in eCommerce, you don’t have to bear any of these. Even for creating an online store, you will get a ready-made solution in the website host platform with a small and limited budget. You can further invest in this as your wish to get your customized designs. Even if you hire a website builder team to get a ready to use website for your business, the payment still will be much less in amount compared to the traditional offline stores.

eCommerce Saves Money on Staffing.

In the offline stores, you should hire specific persons for specific job roles, as it is nearly impossible for a person to maintain more than one job role in the workplace. If one of your employees is busy handling the customers, the other one may seem busy to show them the products, another one may be busy on finding the products of the customers’ choice and for checking out process there is also one employee busy with the transaction process and still, you may need one more employee near the telephone, who will handle the calls and take orders from the customers via phone. 

Whereas in the eCommerce platform, you don’t have to pay in person, rather than you can consider hiring a chatbot that can handle the customer crowd, as well as show them what they are looking for and display all the product categories in front of them to choose. Even, it can also help the customers in checking out process. Also, these chatbots will be available in your online store 24/7, and they are always ready to answer the FAQs of your customers, which can not be possible if you hire a person for looking out to your website for 24/7.

Advertising on the Digital Platform is more Reasonable than the Traditional Channels.

The traditional way to promote your business is advertising through printed brochures, banners, television ads, and radio advertisements, which we all know are expensive, as well as from these ads, you will never get a proper insight of their performance, and it consumes both time and money for you.

Compared to this traditional way of advertisement, advertising on digital platforms about your business is much cheaper and adjustable. You have to pay for the graphics that you want to display on the ad, and some little amount of money on monthly as well as a daily basis to boost your ad on social media as well as on search engines to reach more audiences. Besides this, you will be able to get a detailed insight into each of your advertisements’ performance.

Say Goodbye to your other Business Costs with an eCommerce Platform.

Despite the above-mentioned costs, a business has many more other costs that also can be reduced with an eCommerce platform. An eCommerce website can reduce the office related expenses including document preparation, accounting, mail preparation, telephone calls, employee overtime due to workload, as well as supervision, etc.

Using an eCommerce website will let you handle everything by yourself with just a click. There will be no need to spend money on the papers, and calls as everything is possible using the internet, just like the email. Using email can immensely save on the traditional mail preparation and sending methods. Also, by using eCommerce it also reduces the traveling costs, as you don’t have to travel a long distance to display your products there, with the e-store you will be just one click away from your customers.

In this time period, the whole world is locked down. We all are in the same situation due to this pandemic. And due to this lockdown period, great numbers of businesses are running out from the track or have been closed. If a business can survive this pandemic and successfully thrive to the post quarantine period, then it has to redesign itself as well as it’s team members, to get back to the previous getup. The businesses will need resources in their hands that they can use and for this, they should think about investing in the eCommerce platforms to reduce their business costs. The above paragraphs show you the 5 ways eCommerce reduces the business costs. This pandemic is the golden opportunity for you to start with your online journey.

Thank you for reading the full article with lots of patience. If you have really enjoyed the article then please share it with your friends and colleagues. Also, please make a comment below regarding how this article helped you. You can suggest some other ideas that you may have thought to add up in this article and let us know. Contact us to get an eCommerce platform for your business. We in the WinSquares team, are always ready to help you. Thank you again!