An e-commerce website adds another dimension to any business, allowing them to explore new, online opportunities and expand their marketing efforts.
By 2027, almost 23% of retail sales are expected to be completed online, highlighting the amazing potential of the e-commerce market.
In this piece, we will explore the benefits of having an e-commerce website, either in addition to or in place of a physical store.
From affordability to data collection, we will outline how every retail business, small or large, can profit from an established online presence that makes life easier for customers.
In this article:
- Limitations of a Brick-and-Mortar Store
- Top 8 Benefits of Having an E-commerce Website
Source: Pexels
Limitations of a Brick-and-Mortar Store
Although there will always be a place for physical, brick-and-mortar stores, the shift to a technology-driven world has increased consumers purchasing products online via their smartphones, tablets, or laptops.
Below are several limitations of a brick-and-mortar store that may make a permanent physical location unviable for some businesses.
- Rental Costs – Rental costs for commercial spaces are costly, with retail spaces costing around $23 per square foot in the US. These costs can be significantly higher in sought-after areas and shopping malls, and most retail units also require a long-term lease.
- Startup Costs / Overheads – Fitting out a brick-and-mortar store, including fixtures, branding, and facilities, can incur significant expenses—often tens of thousands of dollars. This is on top of general operating costs such as utilities, taxes, and insurance.
- Employee Wages – Running a physical store typically requires several staff members to handle customer service, restocking, cleaning, and other tasks. The salary of each staff member can come at a significant cost, not to mention perks such as healthcare insurance.
- Limited Reach – A physical store can only reach local customers, limiting a brand's potential to reach national or global audiences.
Top 8 Benefits of Having an E-commerce Website
Source: Pexels
Physical stores have drawbacks in the modern world, where technology can facilitate purchases and transactions in seconds.
Consumers can quickly learn about products in great detail from the comfort of their homes or during their commute, making shopping more convenient than ever.
Here are 8 key benefits of having an e-commerce website in 2024.
1. Affordability
Setting up an e-commerce store is significantly cheaper than a physical one.
Many e-commerce websites and marketplaces use bespoke platforms that have low subscription fees and cost-effective hosting packages.
However, for larger e-commerce platforms, it’s advised to seek out the services of an experienced developer who can ensure it’s fully functional and be scaled successfully.
2. Increased Profitability
Businesses with both a physical location and an effective e-commerce website can be much more profitable than those focusing on just one.
Adding an e-commerce store can solve cash flow problems and provide additional financial support for the rest of the business. Many retail business owners see an online store as a necessary expansion to encourage growth.
3. Reach Broader Audiences
Unlike a physical store, an e-commerce website has no geographical limits—products can be sold across the country or internationally.
Similarly, building an e-commerce marketplace website allows multiple sellers to reach a global audience through a single platform.
A strong brand and online presence allow a business to target a range of marketing channels to reach new audiences.
The success of any e-commerce venture depends on effective branding. Consumers favor impressive visuals and helpful, interactive content.
Today, AI tools make it easy to take care of graphic work—you can even crop PDFs of catalogs and use the same product descriptions online.
4. Sell 24/7
Unlike physical stores limited to 9–5 hours, an e-commerce website can trade constantly, 24/7, allowing customers to make purchases anytime.
A customer can add an item to their basket in the morning and check out in the evening, providing unmatched convenience and a better user experience.
5. Access to Valuable Insights
When connected to analytics tools, e-commerce stores gain access to valuable insights and metrics.
Metrics may include customer lifetime value or the rate of shopping cart abandonment. This helps identify strong and weak content and supports the creation of personalized campaigns. Platforms like Narrato help optimize content production.
Analyzing your site’s strengths and weaknesses makes it easier to improve functionality, navigation, and conversions.
6. Faster Checkouts and Flexible Payments
Convenience is key—e-commerce shines in how it processes payments.
In addition to offering flexibility, purchases can be completed in just a few clicks. Checkout processes can save personal details, delivery info, and payment cards for future purchases.
7. React Quickly to Trends
Collecting website data enables businesses to respond more quickly to consumer and product trends.
This could mean dropping slow-selling items, adjusting pricing dynamically, or offering "buy now, pay later" options.
Monitoring behavior, such as bounce rates, helps optimize underperforming pages. E-commerce websites can adapt quickly to generate more leads and increase sales.
8. Dropshipping & No Inventory Needs
Dropshipping continues to grow in popularity among entrepreneurs seeking low startup costs. It involves selling products without keeping stock or handling shipping.
When an order is made, the product is bought from a supplier, and the drop-shipper earns a percentage of each sale—typically 10–30%. No need for physical storage or worrying about unsold stock.
Source: Pexels
FAQs about E-commerce Websites
1. Why do I need an e-commerce website?
An e-commerce website gives your business a competitive edge through 24/7 sales, broader audience reach, and cost-effective operations. It offers valuable insights and flexible payments, helping you modernize your sales strategy.
2. Will an e-commerce website make my brick-and-mortar locations redundant?
Not at all! E-commerce complements your physical store. It boosts sales, supports cash flow, and extends reach while maintaining in-person customer experiences.
3. How can I build an e-commerce website?
POWR offers tools and guides to help you create and manage an online store effectively. Get started with this guide to creating a custom online store.
Conclusion
Creating an e-commerce website can be extremely cost-effective with many advantages over traditional retail.
The process of building and branding an online store is simpler than many think, thanks to intuitive website builders. From hosting to advanced CRM integration tools, e-commerce sites can be built quickly and effectively.
Worried about payment security? Our PayPal button allows customers to pay instantly from any device—so you’re covered!
Author Bio
Shanice Jones is a tech nerd and copywriter from Chicago. For the last five years, she has helped over 20 startups build B2C and B2B content strategies that scale and serve users worldwide.
