Entrepreneurial spirit, what reflection should we have on the opening of an online shop ?
Jean-Claude KHENG
- Conseiller en Assurance Vie 💰- Epargne Retraite 👨🦳- Gestion de Patrimoine 📈 - Immobilier 🏠 N° Orias : 22000523
Within the framework of my master's degree, I was interested in the opening of an online shop explaining the positive and negative points of this one:
Since January 2020, the global health crisis of Covid 19 has caused several damages: economic, human, material loss. Several sectors have been affected: tourism, events, local commerce and even the industrial sectors, some of which have seen their factories temporarily shut down.
On the other hand, it has boosted other developments such as online sales with e-commerce with several new services and products emerging.
Let's go through the key points, which I analysed during these weeks of investigation:
● There is a better customer experience in physical shops. The consumer can choose his product, touch it, feel it, compared to e-commerce where he receives his product only after payment.
● Shops require a higher initial investment because of the walls, rent and other fixed charges.
● There is a certain comfort in buying on e-commerce: no travel, no transport, no queues and above all you can compare prices directly.
● Shops have the advantage of allowing us to collect our goods immediately, whereas online we sometimes have to wait up to a month for delivery. The leader Amazon offers a record delivery service. This can be from a few hours to the next day.
● The availability of shop opening hours. As you know, a physical shop has opening hours generally 8am-8pm. In contrast an online shop is open 24/7.
● E-commerce has a much wider scope, sometimes even international. A physical shop if it wants to compete has to invest in premises in the 4 corners of the world.
Who wins this battle? The physical shop ... The online shop?
As you can see, e-commerce has a number of advantages, especially for a start-up company: lower costs, non-stop service, international reach and much more.
A company that seizes the opportunity of a market is well advised to start by engaging in e-commerce.
Wishing you a good read. 😊