If you’ve kept yourself aware of the wider business world over the last decade, you’ll have likely seen a thousand stories of highly successful businesses that operate entirely online with zero or near-zero physical presence. As a result, less experienced business owners have eagerly gone exclusively digital with their services, however, the results are mixed.
Unfortunately, a fully online business isn’t necessarily right for all sectors. We look at the pros and cons of an entirely digital business by evaluating the merits for certain industries, and the pitfalls for others.
All the Pros
One of the most significant pro points has to be the number of options a digital interface gives you as a business. When you don’t have to consider the physical aspect of your business beyond shipping and storage, you have a lot more freedom in how you operate. You aren’t limited by needing a customer-friendly shop space that needs extensive planning, maintenance, or costs. Equally, there are no limitations for international business as you aren’t reliant on having shop space elsewhere.
Another plus is that you have a wide range of options for marketing, particularly with vouchers and offers. You don’t need to send staff out with physical pamphlets to be stuffed through letterboxes. Instead, you can use newsletter formats or ad windows on your website to encourage customers to take advantage of your deals.
Of course, promotions and offers are used by big and small companies alike, with a prime example being that of online casinos. If we consider the ease with which prolific brands reach out to prospective customers with their eye-catching promotions, it’s pretty clear why digital marketing is so popular. Thanks to being 99% online, online casinos are able to send out promos like no deposit bonuses and free spins as soon as interested customers visit their site, due to algorithms. As a rule, less steps for customers to get a benefit is appreciated regardless of industry.
Lastly, as a less direct but equally important point, tracking your business becomes far easier as there are plenty of tools that keep all of your data in one place. With just a few clicks, it’s possible to access all of your revenue and expenses, which is ridiculously convenient when compared to the time-intensive process of tracking this data manually.
A Few Cons
The biggest issue hanging over online businesses is that, for some products, going into a real shop and seeing the product in person is an essential part of the process. Things like digital services and online casinos may thrive but for, say, an antique shop, having customers able to come in and inspect products in person is critical. Our own Windmill Hill Antiques set up properly in Alcester earlier this year partly for all the opportunities for unique trades and business finds from walk-in customers. This logic also applies to things like craft shops, artisan creators, and even greengrocers. Each of these can be successful when only online but many customers swear by being there in person.
The other downside is the market presence you lose by not being established and known in a place. When you aren’t rooted in a specific area or location, you end up as part of the nebulous mass of businesses that make up the online world. Making a name for yourself purely online is inherently harder than building recognition through word of mouth around a physical shop, especially now we’re past the early days of ecommerce when the competition was far less intense.
Is it Worth the Switch?
The question you have to ask is what exactly you want your business to focus on. If your goal is to get your products and services out there as far and as wide as possible with minimal delays in starting, then online is the way to go. However, if you’re already established physically with a local customer base, it may be best to move with caution. Many businesses still operate in both fields at once, mostly having a main shop with a smaller online presence, so if in doubt, you can always dip your toes in first.
As with any successful business, the key is knowing your product, knowing your aim and knowing your customers. If you think online-only suits all three better, then it’s worth a look, but don’t go giving up an established base unless you’re certain.
