Many old
model businesses are tapping on the millions of potential customers online.
Many businesses are going online. The future of businesses is online. The
advancement in technology has made the old model of doing business to become
non-competitive in a world that is increasingly becoming a global village. Even
if you do not have a personal computer (PC), you can still get online using
your smartphone. But just like any other business, there are pros and cons of
doing business online.
Lack of
trust
One major
challenge facing online businesses is the lack of trust between the business
owner and the client. Because they do not know each other on a personal level,
it is hard for them to develop a high level of trust. This lack of trust can
slow down business as the clients will hesitate to make purchases involving huge
financial transactions.
Cybercrimes
Many online businesses have lost a lot of
money through cybercrimes. It is a big threat to not only online business
owners but also to potential customers. It is estimated that the whole World
losses about Sh60 trillion through cybercrimes.
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Finding the
right audience
Another
challenge of doing business online is finding the right audience. There are
millions of people online, but not all of them will be interested in your
products or services. You might even have a massive following on social media,
but turning those followers to customers is the biggest task.
Internet
interruptions
An online
business solely depends on the availability of internet. If there is no
internet connection, then an online business is as good as dead. Sometimes, the
hitches of internet connectivity may be beyond the capability of the online
business owner. Like poor weather or mechanical problems with transmitters and
Reuters. In that case, he or she will have to suffer losses.
High
competition
A person
doing business online will have to deal with a high level of competition. This
is because many people are also opting for online businesses. The chances of
you selling the same product as many other people are very high. You are competing
for the same customers. To stay competitive, the business owner will have to
dig deeper into his or her pockets to invest in proper online marketing. He or
she will have to engage, at a fee, the services of Search Engine Optimizations
(SEO) companies and other online marketing tools. Online business owners also
incur costs of web-hosting and internet data.
Blackmail
Hackers
have also made the life of online business owners difficult. They not only hack
their accounts and swindle cash, but they also blackmail them. As a person who
runs an online business, you will have to keep mastering different passwords.
This might jeopardize your online security. Hackers may get to retrieve your
data and use it against you.
