Five advantages of moving from traditional to online business
There are two main ways in which a company can be set up nowadays: we have the traditional, or brick and mortar one, and the online businesses which have started growing in popularity. Even so, most people still choose to create traditional businesses and that is all right as they can later move them online and thus take advantage of both channels and reach more customers.
Moving the traditional online
Those who haven’t taken the step to move their businesses online will find here some interesting arguments for doing that. So, let’s see what the main benefits of moving a traditional business in the online environment are.
Reaching customers worldwide
Many traditional businesses are confined to a local market, which can mean a small town or a region. Moving them online will attract customers worldwide. This will mean an increase in revenues and, more than that, setting up a website for a business will practically mean the company will be open 24/7 and visitors can make purchases at any hour if it is an e-commerce website.
Malaysia is one of the most prolific countries from which goods are sent all over the world; so setting up a website in Labuan, one of the best locations to do business in this country, is a great idea in terms of costs and access to cheap products.
Offering easier access to customers
Imagine having a car rental business in Dubai which is one of the most sought touristic destinations in the world: what better way of promoting it than online? Those looking to rent a car in Dubai will definitely first do an online search before going to the rental company. The same goes when interested in, let’s say renting a Ferrari in Dubai, one can simply select the model and rent it for the desired period of time. All the consumer then has to do is to come and pick up the car.
Better promotion for the traditional business
Moving a company online does not mean shutting down the traditional one, it will simply lead to increased visibility in this very demanding market. A traditional company can be complemented by its online version. One of the best examples is Switzerland, a small country with the local market for traditional companies also being relatively small. This is why many business owners have set up Swiss e-commerce companies to promote their businesses outside the country.
Online businesses imply lower administration costs
One of the greatest advantages of moving your business online is reducing certain costs. This includes costs of storage spaces: through an online business one can simply arrange to have the products sent directly from the supplier to the client. This will also allow for faster delivery and less paperwork for the online business owner. However, having an online business will mean complying with the same requirements imposed by the law on traditional companies and staying away from online scams.
Improved customer support
Keeping in touch with customers and receiving feedback from them is much harder when having a traditional brick and mortar business only. Operating an online business, on the other hand, will definitely improve this part of the business and thus increase its credibility. Moreover, having a great customer support component will attract more clients in time.
Having an online business or moving a traditional company online definitely comes with several advantages, among which flexibility is one of the most important.
When moving a business online, the business owner should respect the local legislation, including the new GDPR imposed in the European Union since last year. And remember to ask for legal advice from a Dutch law firm if doing business in the Netherlands, for example, before taking any step is essential.
Content by The Drum Network member:
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