By now we all know that selling online is changing the way you buy products. They are creating multiple opportunities due to the great demand by the consumers, since in the internet shops they find greater variety at better prices.

But, why is it cheaper to buy in an online store than in a physical trade? There are several reasons:

1- Cost structure is much lower in an online store than in a traditional physical trade. An online store can be managed  from your office or directly from your home, so you save the store by street, light, real estate tax, insurance, water, rentals, etc.

2- Staff costs are lower. By having a physical trade you will have to pay the payroll of the dependents and cleaning services.

3- We minimize the cost of financing if you defer your customers’ fees. Remember that online trading usually takes place before ordering, so the number of defaults number is lower and your financing costs as well.

4- Storage cost. Physical stores must have more stock than online stores because they need to have the product in the store to show it, however in the online store it is not necessary to have products in the exhibition, showcase or linear.

These cost savings allow you to serve your products at a more competitive price while maintaining your margin or even lowering it, because you can reach many more customers than with your physical store.

Source: Mabisy.com

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