E-commerce: Illusions and Reality

In the digital age, it is convenient to shop from anywhere in the world. From groceries to the latest tech gadgets – everything can be bought through an online store without leaving home. However, despite the attractiveness of this form of business, there is a risk of operating at a loss.

Observations show that only a portion of online stores are profitable.

Let's look at the main reasons for failure when opening an online store:

• Illusion one – Everything can be sold online
  There is a common belief that anything can be sold online. However, this is not true. Usually, products that customers have no doubts about sell well. For example, books and similar items. When buying such products from an online store, the buyer risks nothing, as they are sure to receive a product of appropriate quality. However, items like clothing, footwear, and personal care products are different, as these need detailed specifications and additional photographs to ensure the buyer gets as much information as possible. Unfortunately, most online stores lack this.
• Illusion two – Creating an online store doesn’t require much investment
  Creating an online store does not require as much money as its subsequent promotion, or simply put, advertising. Currently, you can create an online store for around $2000-2500. However, many people fail to realize that creating the store itself is not enough – its promotion is much more important. Advertising costs can exceed the cost of creating the store several times over. Additionally, expenses for office space, storage, and employees must be considered.
• Illusion three – Managing an online store is easier than a regular store
  In practice, it usually turns out to be the opposite, and sometimes it is even more complicated. Essentially, it is just as serious a business as a regular store. Furthermore, managing the store alone is unlikely, and you will have to hire staff.