Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche

Grocery Wars

Six Reasons Why E-Business Trumps Conventional Business

The rise of eCommerce has surpassed many analysts’ expectations, which have forced traditional brick and mortar businesses to abandon traditional means of selling and open online stores instead.

With the technological advancements and availability of fast-speed broadband services around the globe, eCommerce has revolutionized how people buy and sell. Additionally, the popularity of social media, search engines, news portals, and eCommerce marketplace like Amazon have given an impetus to eCommerce.

Though traditional offline business stores have their advantage, the rise of eCommerce will only increase. It is estimated that about 95% of all purchases will be made online by 2040, offering innumerable business opportunities.

Online shopping makes up 10% of total retail sales in the US alone and is likely to grow by 15% per year. Here we will show you some of the top reasons why the benefits of online business trump conventional business.

1. No geographical limits

Unlike physical stores, you aren’t bound to your city or a county with an online business. With an online store, you overcome all geographical barriers, and the whole world can be your playground with unlimited potential for scaling.

Today, some of the largest eCommerce businesses also had humble beginnings but grew exponentially by leveraging online platforms effectively. You also have the opportunity to build your brand by promoting your products and services on social media networks, search engines, and other digital platforms for more exposure.

Just like there are no limits on how much you can scale and earn while doing business online, the number and complexity of challenges also rise as you grow online. This is where the importance of professional qualification like a masters of business online is crucial.

This degree equips you with the knowledge and skills necessary to navigate through various industry challenges without compromising on growth.

2. Low overhead costs

Low overhead cost is one of the most tangible positive sides that makes an online business attractive and lucrative for entrepreneurs. The high price of starting a company has been a significant barrier for many young entrepreneurs. At the same time, an online business offers the opportunity to start with the least number of employees.

There’s no need to pay for storage spaces or hire security personnel for inventory. The money saved from low overhead costs can be spent on marketing and retaining customers through offering discounts and promos on sign-ups to gain popularity.

3. Outsourcing opportunity

Before you think if one can also outsource with a physical store, the answer’s Yes, you can. But in the case of a physical store, you can outsource only a few functions such as customer service and business development, etc.

However, an online business allows you to outsource every non-major position to developing countries and save significant amounts of money while offering competitive services at lower prices.

Outsourcing of positions has been a critical trick behind many online businesses that reaped the benefits of outsourcing at the most crucial time of growth. Several online companies in the west are known to have been hiring contractual workers from developing counties like the Philippines and India, where the cost of labor is significantly low compared to western countries.

4. Lower risks

Contrary to what marketing agents or salespeople think, there’s no such thing as a guaranteed stream of income or success in this world because every business carries some form of risk. What may be less risky today might be riskier tomorrow, which is why running a business requires nerves of steel.

But, compared to an online store, a physical store deals with more risks such as high entry costs, labor expenditures, inventory management, security, and customer service personnel.

Online stores face risks too, but they are more towards cyberattacks and inconsistent inventory and shipping management. As mentioned, every type of business has its share of issues.

5. Round the clock availability

Online businesses made it possible for store owners to make money while they’re sleeping and gave opportunities to customers to buy anything they want, anytime they want. This offers immense convenience to customers because they don’t have to stand in queues or wait for shops to open.

This round-the-clock service increases the profits for the business owner and results in more orders for suppliers.

6. Niche products are Readily Available

It has always been a challenge for buyers and sellers of niche products to find each other in the physical world. Some products do not have a big market in physical settings and become unavailable for sellers to offer them.

With an e-business, it is a matter of a few seconds for a user to search your store and find the product they want, which increases your market for niche products. For example, searching for spare parts of older vehicles or advice about treating rare diseases is readily available online.


There’s no definitive answer regarding which form of business is better, as both carry their own set of pros and cons. However, history teaches us to evolve, and online stores are better than conventional stores.

Online stores offer more convenience, accessibility, and growth opportunities by allowing business owners to open their doors to other parts of the world, which is impossible for a physical store.