Is it more profitable to engage in an online business than a 'brick and mortar' type?
Is it more profitable to engage in an online business than a 'brick and mortar' type? 'Brick and Mortar' is the derogatory term for 'tangible' businesses such as a doctors practice, a book store, a restaurant, a pub, dance club, etc. An online business is a business that exploits the 'mechanics of the internet to function.
Let me get your input on this.
Let me get your input on this.
Online businesses have got a number of merits compared to “Brick and Mortar” businesses which makes them more profitable when compared. Being the major one is the reduction in costs. Any emerging or growing business strives to find ways of minimising costs. "Brick and Mortar" businesses needs high start up cost as people have to be employed, space has to be paid for, furniture and more other expenses, and this makes such businesses less profitable in the short-run compared to online businesses. As for online businesses, most of the above mentioned expenses are eliminated resulting in high profit margins. Online businesses can also be more profitable as customers can make purchases 24 hours a day 365 days a year and can sell worldwide, this makes the businesses to have potential for making more sales compared to "Brick and Mortar" model.
ReplyDeleteDear Lucky, you make such lovely points. But how about those economies or communities that can not afford to shop or set up online shops? Any ideas on how we can integrate them into mainstream online business?
ReplyDeleteIn South Africa online shopping its still a problem ,because more poeple do not have employment which gives them an access to financial independence, as online shipping requires credit cards, and beside the majority of people are technologically challenged that is why I do not recommend this idea.
ReplyDeleteso should we generally leave them behind then?
ReplyDeleteI think it is more profitable to engage in an online business than in a 'brick and mortar' business because it has less expenses and more profits than the brick and mortar business. One of the benefits of an online business is that your products and services are 24hours/365 days available to the customers. In comparison with the 'brick and mortar' business there are few regular and normal expenses the business incur, things like insurance, rent, employees' salaries,cost of vehicles, repairs etc.
ReplyDeleteto a large extent it is more profitable to engage on an online business because it allows a business to exploit all the available markets and resources with a wider range to chose from. but on the other hand it demands more time because its a 24hour service that can be provided, it also has risks of fraud on the internet. for a business to operate successfully they have to be risks so its more profitable on my on point of view.
ReplyDeletelt is more advantageous to do business online because there is no opening and closing time as potential buyers can access information at any point of the day. with online business you can reach a large audience as compared to a brick and mortar type. however, there are drawbacks to this kind of business that is there is no physical contact with the prospect and there are no demonstrations for the customer to see how the product functions.
ReplyDeleteit is not because not all people have inernet access and more people including me believe that i need to see and feel the product before i buy it so that i can be convinced and if i buy using the internet if i want to return it back to the shop it will take days for me to have my actual product back rather than going ot the store and returning it myself.
ReplyDeletedoing business online is indeed of advantage as it provide customers witha 24 hr sevice per day,allowes convienience and gives a wider range of choices on products on line.however security of consumers information is at risk and this makes a lot of custumers hesistant before entering credit cards or debit cards information
ReplyDeleteI agree with you. I think what we should start doing is to find ways of dealing with internet security issues. Whether we like it or not, this new way of doing things has come to stay and the best we can do is to fine tune the process. In no distant time, those who refuse to embrace this splendour will be 'locked' out of it.
ReplyDeleteOn line business comes with various advantages as well as some disadvantages. firstly on line business is easier for consumers to select products of their choice and there are no hustles in doing shopping online. however there are disadvantages in terms of security concerning consumers financial details.
ReplyDeletePewter, you have raised a very important point - security threats. But don't we have this same demon in 'offline' businesses? Ideally, our worry should be to figure out how to get rid of the demon whether we trade online or offline. Any thoughts on this Pewter?
ReplyDeletej'
ReplyDeletei think online shopping gives people the platform to have access to the productto those who are far away.
ReplyDeleteInternet is a huge market and anybody has the potential to earn huge income by selling something over the internet. However, a customer might not get all the information he/she want about the product or service. According to Thobekani Lose doing online business is not difficult, the first thing to do is to come up with a business plan before you think of starting an online business. Thobekani personally doesn’t trust online shopping aaa.
ReplyDeleteAsoba said... I will not advice my grandmother(98old)to buy any goods or service over the internet, because it is very difficult to bargain or experience face to face communication. In West Africa,where I was born, 90% of customers prefer to bargain...but my children living in SouthAfrica,always buy on line - because of unlimited variety of choices.However, given these two scenaro, to be on a safe side, I think we must always compare the prices, quality, over the internet, and 'brick and mortar' before we buy.(Think twice)
ReplyDeleteThis comment has been removed by the author.
ReplyDeleteOnline businesses stand to have an added advantage due to continuous technological advances. It offers organisation, society and consumers as a whole, different advantages that surpass those of brick and mortar. To organisations it offers them the ability to reache narrow markets that go uncattered for by brick and mortar businesses and offers wide range of choice whilst attaining customer information. There is cost reduction that can be attained and offcourse the convenience of trading 24/7 without extra costs of overtime for employees and compromising on the different time zone in which we are all based. to consumers it offers among other benefits a platform to search and attain wider choices on products making comparisons easier and cheaper goods and services.To society which is an important aspect of survival for the company, there is reduced car traffic and air pollution. However online businesses fall short in some ways, lack of trust will cause lack of transactions to be concluded, slow navigation on the internet may put clients off and of course possible poor picture quality may result in returns of many unsatisfactory goods
ReplyDelete