Online Vs Traditional Business – 12 Pros & Cons

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In this ever-growing tech frenzy world, the way business is done is constantly evolving. Nowadays, it's perfectly normal to find a job online, work from home, and earn a significant amount of money to live a normal life (even a more lucrative one).

No matter how technology has evolved, there are some people on the contrary who still prefer the old-school ways of doing business. Traditional business, unlike online, is utterly thriving, and some business people opt for dated business methods because their customers or users are not as tech-savvy as those who are keen on doing business through gadgets.

With the ongoing outburst of online trends, there are bound to be more online job offers and new businesses merging, whilst, there are always going to be agencies and people who prefer brick-and-mortar types of stores, so what are the benefits of each?

Take a look at some of the main distinctions between online and traditional businesses and get a clear insight into how those businesses function.

Even though there ought to be positive and negative arguments from both sides, online business tends to attract a wider audience due to its practicality. As it has been seen that online business has significantly altered the traditional business model, it's vital to see what exact advantages and disadvantages exist in both spheres of business.

PRO: Smart software solutions attract a wider audience

Take a look at the HR business for instance, in the past every single company needed to have an HR expert physically present in the headquarters to handle the business, nowadays things are way simpler.

Understanding the Audience

With the online business scheme, actively integrating various business strategies and managing people throughout the company has never been simpler. All things have been simplified but on a professional level with perfect HR software such as Matchr for instance.

Having eligible online HR software has become faster, more tactful, and more professional for accessing payroll or vendor lists, tracking and analyzing employee performance, and many more. Just with one click you can find more here about such expert HR software that has totally reshaped the traditional model.

CON: Constant internet connection

Obvious as it sounds, performing any online tasks requires a steady and functional online connection.

Given the fact that most people who do online business either sell things through certain online platforms, conduct numerous transactions, or perform various tasks and services, if the website or service cannot be accessed due to poor internet connection, the chances are you would get a bad reputation.

And that's only a mild story. Unless you have a perfectly functional and high-speed internet connection, you would be able to run your business with ease, so this could be the first disadvantage to doing business online.

PRO: Cheaper and easier access and reach

Related to the previously mentioned notion, with the ongoing advent of digital technologies, physical shops would slowly but surely cease to exist.

The Future Of E-commerce Predictions And Trends

If you have a steady and high-speed internet connection without any constraints, you can set up an e-commerce where customers all over the world can access your shop or service and purchase whatever they need without having to leave the comfort of their homes.

This online operation has enabled numerous businesses across the globe to reach different nations and markets without much (or any) physical work. Certainly seen as a great advantage, opening and running an e-commerce business is much cheaper than in any brick-and-mortar manner.

CON: Digital payment challenges

What one clientele sees as a positive aspect, many others could see it as a challenging obstacle. Performing various online tasks, especially purchases demands performing financial transactions.

Online commerce where you need to either buy or sell goods or services also includes sending and receiving money across the web, which again requires a steady internet connection.

Although the e-commerce business has risen over the past couple of years, the transfer of funds and data via some electronic network is not what all customers are willing to succumb to. Most people still like the fact of having the opportunity to see and "touch and experience" the product before purchase which is not possible with online business.

PRO: Less operation cost

In today's technologically driven world, it's hard to keep up with the ongoing trends in the industry, hence, online businesses have discovered frugal ways of earning more money without having to spend anything.

Consider the cost

The secret lies in automatization. instead of opening and running new locations, hiring additional workers, offering health and insurance, obtaining physical storage areas, and so on, doing things online without plenty of personnel would raise their earnings.

Online retailers will always have lower rates but at the same time less staff and costs as they don't need to have specialized warehouses or storage space to conduct business.

CON: More competitive

Merely take a look at digital marketing or any other B2B - in this cosmopolitan day and age, online businesses need to invest a lot of money in digital marketing efforts if they wish to combat their competitors.

The survival of the fittest has always been an ongoing rule in the business world, however, it can be relatively hard to track competitor's online efforts due to an abundance of similar worldwide shops and services.

Instead of competing against one local shop, you need to stand out amongst the entire world. Plus it makes it comparatively difficult to retain existing customers because of the versatility of online offers.

PRO: Non-stop availability

The most significant distinction between the brick-and-mortar businesses and those operating online is the round-the-clock availability. The Internet never sleeps, and neither is your business. With any form of online business, your users can open the web page any time and day they wish without any restrictions.


This signalizes that a person can search and shop for whatever product they need 24/7 and also that you have been earning money while you were sleeping, sounds great, right? Therefore, the website must be regularly updated so that your customers would know that the product they are inquiring about is available at their disposal.

CON: Hard to build trust with customers

Here is where the biggest advantage lies in traditional business in contrast to online ones. In any traditional business operation, it's easier and more effective to build trust and retain loyalty with customers, and in online business that is utterly hard to achieve.

Trusting your brand where there is almost no chance of physical interaction or any in-person contact makes it very hard for people to commence or continue collaboration.

Face-to-face interactions have always been a major part of traditional business strategies, and without that firm interpersonal connection, it could be rather demanding to go forward.

PRO: No tangible workplace

Online businesses can be operated from any part of the world. As you don't need a tangible workplace to do your job, a business expert can work from the comfort of their homes and not have additional commuting costs.

What's more, by having the lucrative chance to run your e-business from home, you may not need to pay additional taxes plus you won't succumb to any regional constraints that many traditional businesses tend to face.

Also, as long as you have clear access to the internet, phones, and emails, your workspace can be a small desk or even your sofa.

CON: The constant need to adjust prices

Being able to sell on different platforms such as Amazon, and eBay, or having the chance to offer a broader range of promotion and marketing features, online businesses need to be constantly alert to advertising.

Use a big and bold CTA

Technological developments have also had a huge impact on never-ending advancements, so now plenty of digital channels need to impose a substantial advertising budget to get even more successful.

Online businesses constantly need to adjust their prices and invest in digital channels such as search engine optimization, content marketing, or pay-per-click campaigns. All these things also require a great deal of investment that some small online businesses still cannot follow.

PRO: No maintenance costs

At present all online business can sell their products or services through a different type of online marketplace which doesn't require any physical cash register or even a shopkeeper whatsoever.

With that in mind, there aren't any maintenance fees to be addressed, which makes owning an online business a profitable future step. Besides being obliged to have a good laptop, smartphone, and internet router, there are no maintenance costs to be taken after.

CON: Ask for advice

In the end, many customers still love the fact of entering and going around brick-and-mortar stores without having the pressure to buy anything in contrast to sitting in front of a flashy screen only observing.

Call it a fun pastime activity, but virtual scrolling is not as fun as visiting a tangible shop and seeing and touching the product. The entire experience and apparel of the traditional business is what would attract new customers any given day or night. 

Since there are many differences between online and traditional business models, it's fair to note that the future is bright for the online business. By and large, keep up with the trends, and success is guaranteed.

About the author 

Peter Keszegh

Most people write this part in the third person but I won't. You're at the right place if you want to start or grow your online business. When I'm not busy scaling up my own or other people' businesses, you'll find me trying out new things and discovering new places. Connect with me on Facebook, just let me know how I can help.

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