6 Benefits of Running an Online Business

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6 Benefits of Running an Online Business
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Running an online business is different from running a traditional off-line business. Whether you’re a freelancer or are running an eCommerce business, there are a lot of benefits in running a virtual business.

Here we’ll look at six benefits of owning and running a business online.

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1) Lower startup cost

To get your online business started, you’ll only need a computer and an internet connection. If you have an eCommerce business, you’ll also need a website.

An off-line business is very capital-intensive and therefore much more expensive than an online business.

To get your off-line business started, you’ll need the following:

  • To buy or rent a building
  • Furniture
  • Equipment, including computers, store fixtures, if you’re selling products.
  • Inventory, if you’re in retail, wholesale, or manufacturing.

2) Lower running costs

The running costs of an online business are so much lower than a brick and mortar business.


When you’re running an offline business, the transportation costs to and from work can be quite substantial. An online business can be run from home, which eliminates transportation costs.


Virtual businesses don’t generally have employees. If they need a specialist for anything, they can hire them online. Sites like Fiverr and Upwork offer freelancers for hire at a low cost.

If you have an eCommerce store, you don’t even have to think about salespeople. All your products are found online.

Getting Started on Fiverr


Utility bills for light, water and internet can be quite substantial for a brick and mortar business. When you’re running your business from home, these costs are much less.

3) Higher profit margin

As an online business, since your running costs are lower, your profit margins will be higher. As an online entrepreneur, the bulk of my earnings goes into my pocket.

My primary costs are my utilities which are relatively low. Light, water and internet are my only running costs.

4) Free marketing and advertising

When you have an online business, you can advertise using social media, search engine optimization, and email marketing. There’s also paid advertising, but even this is relatively low compared to an off-line business.

Online marketing also has a wider reach than marketing off-line.

5) Convenient for customers

When you have a business that’s online, customers have to come to you to view your products. With an online business, your customers can view your products on their computers at home.

Your customers can, not only compare prices online but they can:

  • They can check the details of the product they’re interested in.
  • They can take their time in making decisions online.
  • They’re not limited to shop during regular opening hours, but they can shop 24/7 if they want.
  • They can shop anywhere there’s an internet connection. They can even shop on their smartphones.

6) Instant Feedback

When you’re business is online, you can get valuable feedback almost instantly. You can get vital data, useful for running your business, almost immediately. Including data about:

  • Visitors to your site, including numbers, age, and demographics.
  • Earnings.
  • Sales
  • Product data, including the movement of individual products.

This type of data would be expensive and time-consuming to analyze with an off-line business.

As you can see, you can’t go wrong if you’re starting an online business. I’d highly recommend that you give it a try.

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