There is a very high overhead cost in offline businesses. The retailers cannot afford to sell the products at a low cost because all recurring expenses are very high. Most of the things in Ecommerce are automatic. Costs incurred in everything from inventory, customer details, payment details to product selection and management of customers’ interests are lower than traditional commerce expenses. The main reason for the growth of internet users and social media is E-commerce.
From a merchant perspective if he needs to expand the business to reach more people in the offline method he has to do more physical effort which increases the cost. Whereas with an eCommerce business, a single investment in one website or mobile application can cater to multiple markets.
All advertisements like solid prints, news and televisions are expensive and don’t give the vendor clear performance. Online Ads proved to be effective and cost less than traditional Ads. Its easier to monitor as a detailed optimization.
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