E-tailers Pros and Cons

By Sue Yi

E-tailers, or companies that sell products or services specifically through the Internet, are growing at a rapid pace. Yet at the same time, e-tailers are closing just as rapidly. Very few are successful in their endeavors; Amazon.com is about the only e-tailer to actually make a profit. So why would one want to become an e-tailer?

The reason for this is the many benefits of e-tailers. Virtually anyone can start an online-only business. The only things a person needs are a computer, and something to sell.

E-tailers also have a much larger market to cater to, as opposed to the familiar brick-and-mortar stores that we are all used to. Instead of only selling to their immediate area, e-tailers can sell their products and services to people all over the world. Not many brick-and-mortar stores have that ability, or the funds to do so.

Another positive characteristic of e-tailers is that e-tailers are not limited by land. Brick-and-mortar retailers are confined in space. The typical retailer needs a store in which to sell its merchandise, and space for its employees to work at, such as offices. Yet e-tailers do not need the typical stores to display their merchandise. All they really need is a product to sell and a place to store it.

Some may want offices for its employees. Yet even that does not have to be in a typical office either. For example, Amazon.com was created out of a little bedroom with a computer.
As with everything, e-tailers have its cons as well. Most e-tailers are not profitable, and thus, are forced to shut down its operations after a short period of existence.

Another downfall is the issue of consumer privacy. Credit card fraud is ten times higher among online retailers than it is for the brick-and-mortar businesses. This obviously would make consumers more hesitant in purchasing items through the Internet.

As new innovations are created, hopefully the business and technology fields will be able to work together to further the use of online-shopping and address the concerns of the retailers and the consumers.