The main ingredient while making a dish is not a specific ingredient but a balance among all of them. Likewise, the concept of e-commerce created in recent past years also needs a perspective from both sides. Like everything executed in the system, two things are always there, just like two sides of coins- the pros and cons. Before incorporating any system into business, a successful businessman has a character to analyze the advantages and disadvantages deeper. Just by looking at single harm, the decisions are never made.
A well-known fact in trade or business is that the pocket in one’s money is always transferred from someone else. The advantage of one is directly related to the disadvantage of others. In addition, some specific issues are out of the discussion of benefits and losses. In that case, calculated tax planning is required, and a tax advisor should be hired to go through all the unique situations. By analyzing the story from both perspectives, you will have an idea regarding the complexity and ease of the problem.
PROS
The Internet has always been a game-changer in terms of the corporate world. Indulging the algorithms of online world business is now more convenient and works smoothly.
Mark your figures
E-Commerce accounting enables a business to know its numbers. It allows keeping track of tax details and other cash flows. The business strategies are mere plans without the proper tracking system. So. E-Commerce accounting clicks many options simultaneously, letting a business experience much more!
Physical disappearance
While setting up your business physically, a company not only needs the product to be manufactured but the place as well. Combined with rent it also consumes electricity and the working area for the employees. Apart from this some companies offer driving stuff for their employed to reach their destined business.
But e-commerce resolved all the issues—no need to worry about working space or electricity anymore. Moving your store to an online store enables you to get free from all the physical stuff. So in other chance physical disappearance proved to be in the beneficial category. Monitoring your online store via e-commerce accounting enables any business to benefit from saving the cost of renting expenditures.
Deduction of Suppliers Cost
Promoting your product through an online store will help reduce the overall charges on the product. It will make the product accessible at a reduced cost. Traditionally, when a product is available at the market, it carries the cost of each supply chain through it reaches the customer. Placing an order directly from the online store under which the product is manufactured comes only with the manufacturing cost and not the supplier chain’s price. E-commerce accounting reduces the cost of the overall effect.
Keep Yourself in Touch with The Customer
E-Commerce accounting allows a business person to be in touch with a customer forever. You can record how fluently a person is purchasing from your store through special online tools like messenger or website chatbox. Keeping a flux record will enable you to promote your business through them.
Apart from them, all the inventories and trajectories must be traced so that a business holder must have a clear picture of all the demands and sales. The advantages of e-commerce accounting are not limited to the points mentioned above. E-Commerce accounting is a versatile comfort tool that is helping businesses throughout the world run smoothly.
CONS
Fraud risk is neutralized but not diminished
Fraud risk is always there either in physical or online stores. However, due to the main streamline of online transfer via the online banking system, the chance for hackers to steal money is increased. So we can sum up the argument by saying that the fraud risk is neutralized due to two-step verification but not reduced.
Increase in cost due to shipment issues
On the one hand, e-commerce enables the product to be delivered worldwide via amazon. On the other hand, the cost of the product is enhanced when additional tax charges and delivery charges are applicable. Let’s suppose you live in the United States and place an order on an online store situated in Dubai. Apart from the product’s original price, there will be an additional cost due to the shipment. So it simply cancels the benefit of reduced supply chain charges.
Playing with customers patience
E-Commerce businesses incorporate e-commerce accounting as the primary tool to run the process. The person places the order, and the required product takes time to reach its destination. If shopping and purchasing are all about immediate happiness, then the customer’s dopamine requirement cannot be fulfilled immediately. From ordering to delivering at your doorstep, the whole process will require time and, most importantly, patience.
Comparison of the prices
E-Commerce accounting-based businesses and online stores allow the product to display publically. If the product is not unique, many online stores will offer the same thing, but here the price becomes the game-changer. The store offering the minimal cost will be benefited in terms of large flux. But again, this benefit will not help the business because the profit is less. So, either way, it’s the decline of the hypothetical profit!
THE BALANCE
Putting everything in perspective, perfect planning is required to run an online business. The advantages need to be enjoyed whereas the disadvantages need to be avoided. Set up a goal for your business by creating a perfect balance. The balance could be achieved only by doing a deeper analysis of both pros and cons and executing a plan in a sound- profitable manner. The only goal should always be kept in mind- to make a profit with quality deliverance.
