Top advantages and disadvantages of ecommerce for businesses to know

Advantages of ecommerce

With the various types of ecommerce that exist, the possibilities for getting involved in online sales are plentiful. Here are just a few of the benefits you’ll enjoy as an ecommerce entrepreneur! 

Ecommerce: A booming market 

There’s no question that ecommerce is a particularly dynamic market. Statistics show that it has grown exponentially over the last few years and is on track to only continue. 

Data from eMarketer shows that the total percentage of U.S. retail sales from ecommerce rose from 9.9% in 2018 to 14.7% in 2020. By 2027, ecommerce is expected to account for approximately 20.6% of total U.S. retail sales, generating over $1.7 trillion.

Source: eMarketer

The development of ecommerce has led to a change in purchasing habits. In fact, 62% of U.S. consumers shop on the internet at least once a month, according to Invesp, with more than 50% of consumers purchasing products on their mobile phones or tablets. 

These figures speak for themselves: there’s no stopping the growth of ecommerce. It’s one of the most dynamic markets in commerce and will continue to develop and increase year over year. 

Opening a store online doesn’t require a huge budget

Despite the great potential of online stores, opening one doesn’t require a large upfront investment for your business, no matter what products or services you offer.

You need thousands of dollars in your pocket to open a brick-and-mortar operation, primarily because you must purchase or rent a physical space. By choosing to create an online store, these costs are significantly reduced.

Your office is wherever you want it to be

Another one of the main advantages of getting started in web commerce and creating an online store is that you have the flexibility to work from wherever you are in the world. The only constraint is that you’ll need to have an internet connection. 

Regardless of your location, you’ll be able to launch and manage your ecommerce business with ease. No longer dictated by commutes, public transport, and traffic jams, your office is wherever you are!

Be your own boss

By swapping your working life from full-time employee to entrepreneur, you’ll quickly see that you can enjoy total freedom as the owner of your ecommerce company.

Be careful, as this doesn’t necessarily mean that you’ll work less. However, you’ll no longer have to report to anyone!

Furthermore, by opting for an online store, you won’t be constricted by the typical opening hours of a brick-and-mortar business.

Your working hours are completely flexible, and you can work around your other commitments. 

Reach customers all over the world

Traditional physical stores in various markets are limited to their neighborhoods and surrounding areas for potential customers. However, online stores make it possible to connect with a much larger consumer base. 

You can tap into a wealth of different markets around the world with an online store. You’re not just limited to your country, as you can attract potential customers all over the globe. You now have the chance to export your inventory and share them with customers on the other side of the world.

Chupi, a jewelry company that offers shipping to numerous countries across the globe

With a brick-and-mortar store, your customers are often the same, but with the help of the internet, your products are as likely to be sold in the US as in Europe or in Asia! Your online store is able to welcome an unlimited number of customers. 

It’s very simple: selling on the internet allows you to increase the sales power of your business!

Your store stays open 24/7

Ecommerce allows you to not only sell your products anywhere in the world but also make your products available no matter what time of day. Your customers can access your site and shop for products whenever it suits them, even at 3 a.m. on a Sunday evening, which is usually not a possibility with businesses involved in traditional commerce.

This is even more of an advantage than you might first imagine, as it allows your business to reach shoppers around the world, irrespective of time difference. It also offers a different kind of experience for the consumer, bringing in customers who work non-standardized hours and who might not have the time to do their shopping in brick-and-mortar stores. 

Make money while you sleep! 

Optimize your sales by highlighting your best-selling products 

With an online store, it’s very easy to showcase your best-selling products. By putting these products on the homepage of your website, your customers can’t miss them!

Farmacy Beauty highlighting their new Strawberry Lip Smoothie on their homepage

You can also bring in the added advantage of positive customer reviews and other marketing strategies for your business.

Believe me, it’s much easier to highlight a product online than it is to reorganize your entire store and window displays to bring your customers’ attention to one product in particular.

You’re also free to change and re-design your store as often as you wish. You can even personalize it for your customers, particularly with cross-selling or upselling, for when they’re logged into their account online. 

A plethora of marketing tools to increase your sales

To grow your business, a whole host of marketing tools are also available, particularly to encourage impulse purchases or the acquisition of additional products.

To this end, I suggest you pay attention to the quality of your photos as well as the layout of your website. I also advise you to seriously consider your advertising strategy.

Ability to vary content forms

To encourage organic traffic to your website and provide interesting content for your visitors, I also strongly advise you to vary the media and types of content used.

Who said your website should only have text and photos? To make your site more original, add some videos or some blog articles related to your products.

Brooks offering video content on product pages

This will assist your business with looking more professional and more like a specialist in your field, all while improving the SEO of your website for search engines. Optimizing the content of your website for search engines is essential, as it can assist in making your online business visible to more potential customers. 

A store that’s easy to adapt to trends

Online stores are also totally customizable and adaptable, which allows businesses to stay on top of the latest trends or different times of the year. 

It’s not necessary to redo your entire business or undertake large-scale work. All you need to do is change your background and add a few extra items here and there to transform your website from one with summer vibes to one with a cosy winter theme. 

Ecommerce: Real shopping convenience for the customer

The benefits of ecommerce are not only limited to you, the seller. It also makes life easier for your customers, which also explains the incredible growth of ecommerce sites. 

With only a few clicks, your customers have access to an enormous array of products

of all kinds. Filters and search engines allow them to better target their purchases, further improving the shopping experience.

They can purchase what they need from your website without leaving their sofa, at any time of day. 

So, as a retailer who cares about the comfort of your customers, what better experience can you offer them than this?

A less intrusive sales style for the customer

Some more introverted consumers hate going shopping, simply because they don’t enjoy interacting with staff.

They feel that store assistants are often invasive and that they can’t be left to do their shopping in peace. 

This is why many people prefer to make purchases on the internet. In addition to online shopping having attractive offers and services, its sales methods are much less intrusive. 

When needed, certain online businesses also supply chat or messaging options if customers have any questions. However, customers are otherwise left to their own devices to browse and buy as they please. 

An impressive resource to enrich your customer database

Finally, note that it’s much easier to gather customer data through an online store than in a traditional business. 

When shoppers buy something online, they are obliged to fill out certain fields, such as their address, email, and/or telephone number. You can also obtain this data and other kinds of information through gamification, like a quiz, with users receiving the results only after providing their details.

Product-finder quiz on the Freshpet website

In a physical store, however, they are generally far less willing to share this information with the cashier. 

For this reason, online shops often have far superior and up-to-date customer databases. This information helps you to better understand your customers and create tailored advertising.

Disadvantages of ecommerce

As you’ve seen, opening an online store has a lot of potential and is a great opportunity for starting a new career. However, I’d be lying if I said that there are no downfalls and that managing a store online has no inconveniences…

The competition is tough!

Although the internet has fantastic potential, competition is particularly fierce in the world of ecommerce. According to Capital One Shopping, there are 11.9 million online stores in the US, representing approximately 49.4% of all global online retailers.

The top-ranking spots are obviously taken by the ecommerce giants like Amazon, eBay, Walmart, Etsy, and Home Depot. A study published by Statista found that in the US, Amazon controls 37.6% of the ecommerce market share, as of 2023. 

Nevertheless, rest assured that, despite this competition, online stores of all kinds of sizes can be profitable! 

Beware of technical problems that can make your site unavailable!

Besides the competition, another one of the major disadvantages of web commerce is from a purely technical point of view…nothing is more damaging to ecommerce businesses than a website that’s down or too slow.

Therefore, I advise you to be very careful when choosing the web host for your online business.

Prioritize quality web hosts that allow you to integrate extensive amounts of content on your pages while also making them accessible to a large number of visitors. Even though you can never rule out a breakdown, technical problems should only be occasional and shouldn’t damage your online business.

Ecommerce doesn’t allow shoppers to try before they buy 

Buyer’s remorse is a sentiment felt across all kinds of commerce. This feeling can often be avoided if you have the chance to try products beforehand before committing to a purchase. 

Another major problem with ecommerce, often cited by customers themselves, is the inability to try the items.

Of course, it’s possible to return a product when it doesn’t suit you or to purchase several items and pay only for what you keep. However, this requires action from the customer. Not having the option to try or test products beforehand is one of the major obstacles to shopping on the internet. 

Rest assured, though, with the development of technology and notably thanks to augmented reality, customers can now have an increasingly realistic preview of the rendering of their articles.

Some websites are focusing on more interactive experiences, which even allow shoppers to try on their new glasses or even to test their makeup on their face!

Ability to try on frames using the Warby Parker app

Customers must be patient when waiting for responses to their questions

Ecommerce can sometimes be frustrating for impatient consumers. If the buyer knows exactly what they are looking for, this doesn’t pose a problem. 

However, if they have a question about a product, they can sometimes have trouble finding answers.

In a store, all they need to do is ask a store assistant for help to solve the problem.

With an online store, though, they must send a message or contact customer support to get a response. 

To avoid misunderstandings and guarantee the satisfaction of your customers, I urge you to be as responsive as possible! If your online store is growing, don’t hesitate to outsource this task to specialist advisors who can work longer time slots.

You might also consider adding an FAQ page to your website as well as an AI chatbot to handle simple queries.

Casper’s Luna chatbot, offering personalized mattress recommendations

Items sold must be shipped

Speaking of consumer impatience, it’s important to note that delivery times and delays can be one of the biggest drawbacks of ecommerce. 

In fact, Digital Commerce 360 reports that 23% of people abandon their online shopping carts due to slow shipping.

When customers really want or need an item, they can receive it much faster if they go to a traditional store to buy it.

In contrast, when making a purchase online, they have to wait for the product to be prepared and then shipped. There’s also always the potential of delays with the mail service and the shipping process. 

Online purchasers are becoming increasingly impatient to receive their products that more and more are subscribing to paid subscriptions and fast delivery services. 

In any case, always clearly indicate to your customers your shipping and delivery times when they place an order and make sure to respect them… The satisfaction of your online buyers depends on it!

Data security is a key issue

The vast majority of internet users will use their credit or debit cards to pay for their purchases. What’s more, they supply information like their names, addresses, and phone numbers when placing orders on the internet. 

This is why your site must be secure.

The internet addresses of secure sites are easily identifiable since they always start with “https” and not with “http.” A small padlock should also be displayed in the closed position, next to the address of the payment page.

In addition, the 3D Secure system can also ask customers for an additional code, received by text, to secure the transaction.

All of these methods help fight effectively against fraud and help reassure consumers when purchasing online. It’s imperative that you have this in place on your site!

Physical stores are still popular with the public

Finally, despite all of the above elements, and even if ecommerce continues to grow, brick-and-mortar options still remain popular with the public. According to Capital One Shopping, 72% of consumers visit physical stores to shop every week.

Why? Because people still want to see, try, smell, and touch the products they are going to buy and appreciate getting assistance from real humans.  

That being said, isn’t there enough room for both physical and online stores? 

Furthermore, in-store sales are trending downward for some types of goods: this is the case for clothing, which has seen a drop in in-store sales. A boon for ecommerce!

How do you know if ecommerce is a good option for your brand?

The prospect of launching your own internet commerce venture can be exciting, but before you start the process of beginning to sell online, it’s important to determine if it’s the best fit for you. Considering the following elements can help you figure out if ecommerce is a good option for your brand.

• Target audience behavior: Think about whether your target customers are comfortable shopping online and how often they make digital purchases. If your audience frequently uses the internet for research or shopping, ecommerce could be a strong channel for reaching them.
• Products you wish to sell: Certain products, like digital goods, fashion, or home accessories, tend to sell well online, while others (e.g., highly perishable items or services requiring in-person delivery) may face challenges. Evaluate if your offerings can be easily showcased, shipped, and understood through an online platform.
• Logistics and fulfillment capabilities: Efficient order fulfillment, inventory management, and shipping processes are essential for ecommerce success. You’ll need systems in place to handle packaging, returns, and delivery times that meet customer expectations and ensure the best shopping experience possible.
• Competitive landscape: Assess how saturated your niche is and whether you can differentiate yourself from competing companies online. If you can offer unique value, such as better pricing, exclusive products, or outstanding service, you may gain a strong foothold in the market.
• Initial investment and ongoing costs: While digital commerce can reduce the need for physical retail space, it does come with its own costs, such as website development, marketing, payment processing, and cybersecurity. Be sure that your budget can support both the setup and sustained growth of an online presence.

Conclusion

Now that we’ve been through the major advantages and disadvantages of ecommerce, let me remind you of a few key statistics for the market. 

SellersCommerce states that, as of 2025, there are 2.77 billion people worldwide shopping online, with this figure predicted to amount to 2.86 billion by 2026. 

In the US, there are 288.45 million online shoppers, which represents approximately 83% of the country’s population!

In other words, even if the competition is high, the significant potential of ecommerce leaves you with plenty of room to have a piece of the pie in the market. 

Online sales, ecommerce blog, boosted activity thanks to artificial intelligence, SEO optimizations for your traffic, training, real-time monitoring by a team of business coaches, etc. With a solution like WiziShop, you don’t need to be an IT specialist to design your own online business that meets the demands of the market, consumers, and technological trends. 

So, what are you waiting for to give yourself the opportunity to shine online? Implement your company’s marketing strategy, open your store, and feel that sense of euphoria when you make your first sale!

With the WiziShop solution, there’s no need to be an IT expert to create your online store and sell goods on the internet. Put your marketing strategy in place, launch your new business, and feel that sense of euphoria when you make your first sale!