At this point, we probably don’t need to talk much about the speed of online business development anymore, especially when social networks are expanding to facilitate the spread of news online more quickly.
However, a problem arises that as it grows, the online business becomes more and more separate from the traditional business, and even tends to be fiercely competitive. For those who are preparing to start a business, choosing between these two methods is really a difficult decision. The following article will be an objective comparison to help you make a more accurate decision.
1. Similarities between online business and traditional business
1.1 All have to invest effort, time and money
Business is about having a product, whether it is an online or offline business. To meet market demand, providing products to customers must have products for business. The products in addition to serving the needs of customers must ensure quality.
In order to meet the diverse needs of customers, products in online and offline business must be rich in categories and ensure quality to meet both the material and spiritual needs of customers:
Investment in time: Of course with both of these business forms, you have to spend time taking care of it, there is no business form that quickly achieves success. Investment in capital: Of course, capital is an essential element to start a business, whether the business is large or small, investment in products more or less also requires capital to implement.
1.2 Support – good customer care including Online business
No matter what type of business, you have to interact with customers so that both parties can achieve their desired goals, customers need to buy your products and services.
While you want to sell and provide that product or service. It can be said that in the business of supporting customer care, it is necessary to keep customers. The purpose of this job is for customers to stick with the business for a long time. The form may be different, but support and customer care are always appreciated by businesses online business and offline interest.
1.3 Always innovating – reliable
Even an online business or a traditional business needs these two things, in order to attract customers, businesses must always innovate, innovation is to keep up with the development of society, innovation is also to renovate itself to suit the changing needs of customers.
A good product, dedicated service attitude, attentive care, good promotion and after-sales service will be of the utmost concern. All of these things create a solid trust of customers with business enterprises. Whether it is an online or offline business, it is always important to create trust for customers to come back next time.
See also: Revealing how to manage multi-channel sales for newbies
2. Difference between online business and traditional business
2.1 Initial expenses
To open a physical store, you have to prepare a small amount of capital, the space rent alone costs several tens of millions, even hundreds of millions if it is a convenient location such as the street or the central area.
Then you have to repair and decorate the store to attract customers, buy equipment, if it is a large scale, you still need a warehouse to store it. Thus, the average store construction cost alone cost at least nearly one hundred million.
Meanwhile, if you choose to have an online business, you only need to spend a small amount of money to build an initial foundation including designing a sales and marketing website, even some people using social networks don’t even spend a lot of money. a penny.
The cost to have a professional website compared to opening a physical store is much lower, just spending less than 10 million VND your website will not be inferior to any website on the market today.
2.2 Management ability
Managing a physical store is definitely more complicated than an online store, in addition to controlling product information, buying – selling, exporting – importing activities, you also have to manage employees. Meanwhile, the management activities on the website are automatically stored information, allowing you to access the data at any time to check, very convenient.
Some traditional marketing methods are handing out leaflets, placing banners, advertising in newspapers, media such as FM radio, television, etc. However, if you want to apply these methods, you will have to give up. pay a small fee, especially for advertising on television, the amount is calculated per second displayed.
In online business, you can apply free methods such as SEO (search engine optimization), advertising on social networks, forums and some paid tools such as Google Adwords, Facebook Ads. , Instagram Ads,…
If comparing between these two types, their accessibility must be analyzed. In online business, you can easily find your customers without being limited in time and space thanks to the Internet.
The traditional methods are not like that, but it is easier to focus on the target audience. The spread of online marketing is much faster and wider, and the cost is low, so it is very beneficial for those who lack economic potential.
2.4 Safety and security
As mentioned above, fraud in online business is quite common because the safety and security of customer information has not been thoroughly done. Declaration forms for login, payment, etc. are not 100% reliable, just users who are not alert will be taken advantage of. Traditionally, because transactions are direct, fraud is less common, and information can be kept as secure as possible.
While traditional business mainly pays directly by cash or using credit cards, online business has more diverse forms such as wire transfer, e-wallet, online payment gateway, etc.
Through these 6 comparisons, we can see that each business method has its own advantages and disadvantages. If you don’t have a lot of capital and want to reach customers quickly, you can choose an online business, but if you want to create a sustainable, long-term brand, build trust and loyalty in customers, choose a business. traditional. In addition, you can choose the third option, which is a traditional online business.
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