With rapid digitalisation paving the way for e-commerce, the idea of dumping brick-and-mortar retail for online retail sounds all the more convincing.
Retail no longer requires opening a storefront!
Before you heave a sigh of relief, note that this newfound convenience comes with a price. And that means more competition!
Here are four solid reasons why e-commerce is way more competitive than offline retail:
1. Lack Of Natural Traffic
Brick-and-mortar stores have always reaped the benefit of having natural traffic. However, for online stores, driving in traffic will require more effort.
Lacking in physical visibility, online stores will need to allocate a sizeable amount of marketing budget on digital marketing and advertising.
Some of the strategies that will need to be utilised by online stores include social media marketing and advertising, optimization of product listing ads, and search engine optimization.
As necessary as they are, these promotional measures are costly to maintain.
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