Advantages and disadvantages of an online business

The online environment is developing more and more day by day, each company/business being somewhat obliged to present its offers and services through a presentation site or an online store.

Having more and more access to the internet, through mobile and fixed devices, most of us document ourselves from the internet when we want to find out something. Even when you want to open a loan, we analyze online credit companies’ reviews and the same for any type of business.

In fact, because of this, today fairly simple reasoning applies: “You are not online, you do not exist!”.

An online business can have many advantages, which of course can be exploited in its way, but it can also have disadvantages. Below we will try to specify which are the most important of these and of course, explain them briefly, according to the opinions of users on

Advantages of online business

  • The most important advantages are:
  • A larger market
  • Easier communication of products/services
  • Lower expenses with rent, employees, and utilities

One of the biggest advantages, when you are present online, is that anyone, wherever they are, can see the products or services you offer, without being limited by a road to your company or space where you display these products. Through 2-3 clicks, he can see who you are, what you do, what you sell, etc. In addition, they can make an opinion about you or your business, or they can even purchase your products through an automatic ordering system.

Today, buyers no longer have the time or patience they once showed. Whether they choose to look for what they want in a real store or on the internet, they need a system that makes their choice as easy as possible, a way in which they can make price and feature comparisons between products/brands. Easy.

Of course, when you have an online business, the so-called fixed expenses are considerably lower compared to a normal business. In an online business, you can rent a space on the outskirts of the city, where the rent is lower, without this aspect negatively influencing your sales; you can hire fewer people because their work can be made more efficient. A simple office with 2-3 employees is more than enough for an online business just at the beginning of the road – of course, the number of employees will increase over time, but this means that sales/revenues will also increase.

Disadvantages of online business

  • Here are the main disadvantages:
  • Lack of the possibility to have a space positioned “strategically”
  • The products are not palpable

I think that each of us knows those shops or cafes strategically positioned, in heavy traffic or a crowded intersection. These spaces “attract” their customers, just because they are positioned where they should be.

Unlike a normal business, in an online business, the products are not palpable, they can be seen but cannot be touched by buyers. From a psychological point of view, this aspect negatively influences the buyer’s choice to purchase the product. In addition, many people are still reluctant to make online payments, and online stores simply do not trust that their personal or bank details are secure when making an online payment.