Prior to the digital age, only a select few could amass the resources required to launch their own business. Starting capital had to be substantial, and outside funding was often difficult to come by unless you had connections with financial and entrepreneurial know-how.
That is simply not the case in the world of online sales and eCommerce, where demand for eCommerce and online businesses has exploded. Even in the last few years, eCommerce has grown tremendously. E-commerce sales increased by more than 50% between 2019 and 2021, accounting for 13.2% of all retail sales in the United States.
Today, regardless of professional background or previous entrepreneurial experience, anybody can establish and build an internet company.
However, although the entrance barrier has been reduced, it is not totally removed. Potential entrepreneurs must still create a high-quality product idea, devise a sourcing or manufacturing strategy, and implement a viable sales model.
You might be wondering why you should start an online business in the first place. Why not go with a physical store instead?
What is the solution?
There are several advantages to starting an online business, including:
To begin, it is relatively inexpensive.
Many people want to start a business but are put off by the initial investment required. You’ll need to pay for a lease, inventory, and employee salaries. If the company fails, it could bankrupt you.
With an online business, however, all you need is:
- Domain name.
- Website builder.
In other words, starting an online business with $100 is doable, and you don’t have to risk your life savings to become a successful online entrepreneur.
Significant potential and growth.
When you own a physical store, you must deal with the constraints of the real world, such as real estate costs and local demand.
None of these constraints apply when you run an online business. You can sell to anyone, no matter where they live, and your pool of potential customers grows with each year as more people become comfortable with online shopping.
By 2025, online will account for roughly 25% of global retail revenues. Furthermore, the global internet population is growing, with an estimated 5.6 billion internet users by 2025.
More individuals online equal more potential exposure for your online brand — particularly if you don’t mind expanding your internet company on the other side of the border.
Another advantage that online businesses have over brick-and-mortar businesses is that they can remain open 24 hours a day, seven days a week, even during lockdowns and other disruptions.
Once your company website is up and running, you are always ready to make a transaction. Customers may place orders with you at any moment.
Because you don’t have to be physically there to make a transaction, your firm may earn income with minimal engagement on a daily basis.