Online selling

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  • Selling online
    • Benefits of selling online
      • Reduces their overheads (rent and utilities
        • Can have lower prices, which means they are likely to be chosen over competitors
      • Customers can buy at their leisure
        • Increases customer satisfaction, as they aren’t constrained to opening hours
      • Don’t need to have as many warehouses
        • Renting land is very expensive, so it will reduce the business’ costs
      • Increase market size (worldwide)
        • The gives the business the ability to reinvest profits and grow
      • Don’t need to be near the physical store
        • Having land in an area close to a market can be very expensive
      • Offer a wider range of products
        • This means it is likely to mean you can access more markets, so get a bigger brand awareness
    • How to engage with the customer?
      • Videos
      • Photos
      • Search facilities to find needs and wants
      • Looking attractive
      • Product descriptions
      • Feedback and ratings
    • Drawbacks of selling online
      • Smaller businesses can struggle to compete
        • This may mean they have to shut down, and the larger companies get even bigger
      • If it goes wrong, the business can’t sell anything
        • This will decrease customer satisfaction, so they may go to a competitor instead
      • It requires technical setting up
        • IT can be very expensive, especially if the business wants it to look professional, which reduces profits
      • Good customer service means having a helpline people can call
        • This increases costs as the call centre staff will need to be paid
      • Easier for people to compare prices
        • If another company is cheaper, then they are unlikely to get the trade

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