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What is a Statutory Demand, and What can it Mean for your Business?

Last Updated on January 30, 2023 By Ifama Leave a Comment

A statutory demand is a means of formal demand served by a creditor seeking payment of a debt that is an excess of $1,000 or more.

We hear mixed messages about whether the world will face a recession, whether dark clouds are hanging over the economy, and how some businesses are struggling to get back on top of things following lockdowns and a downturn in income. In this climate, we, unfortunately, do see an increase in more formal debt collection activity such as statutory demand. 

Whether more challenging financial times will descend on the economy may be location or business-type specific.  It is essential, though, that the director is aware of their potential liabilities if they face financial difficulties.  So often, we hear people telling us they thought it would go away or they could keep trading and deal with things themselves.  We know that tough financial times and the inability to pay bills and keep your head above water do not usually resolve without some help or significant changes to the business and company operation.

Statutory Demand

If a statutory demand is made on a company, the director/s of the company are being made to prove the solvency of the company or pay debts that are due. 

We are commonly contacted by businesses that have received a statutory demand from the Inland Revenue Department (IRD) due to owed funds.  However, the issuing of a statutory demand is not limited to IRD and may also be served by a private party owed money by a business or company. 

Before a company is put into liquidation, a statutory demand must be made for the debt to be repaid – to give a company an opportunity to avoid the potential rumination of a business. If we listen to the economists and business forecasters, they continue to predict that cash flow will be tight for Government and some businesses, and for some it already is.  Those companies that don’t deal with debt and look after all their creditors in the spirit of the Companies Act 1993, do so at their peril.

right-law-attorney-justice

What Criteria Need to be Met to Issue a Statutory Demand?

  • The NZ Companies Act 1993 (the Act) provides that a statutory demand must be in respect of a debt that is due, meaning the money must be owed to a party and have gone past the terms of trade without being repaid or a payment plan put in place.
  • A judgment doesn’t need to be obtained before the service of a statutory demand.
  • The debt must, however, be due and presently payable as of the date on which the statutory demand is served, in the sense that the creditor is entitled to immediate payment.
  • The statutory demand procedure is available only to a creditor whose debt is equal to or more than the prescribed amount, which is currently $1,000.
  •  

What Should Recipients of a Statutory Demand do When one is Served on Them?

  • The first thing is to act and act quickly.  The clock is ticking when a statutory demand is issued, and time moves fast.
  • First, speak to your accountant to determine any immediate options to pay the debt.
  • Speak with a licensed insolvency practitioner who will give expert, practical advice, and options.
  • The sooner a business owner faces the issues they may have, the more opportunity they have to resolve matters before a liquidator or receiver is appointed to take control of the company outright.

One of the most significant issues we have when contacted by a business in financial distress is they have left it too late to act and deal with the demand in a responsive matter; whatever financial difficulties you are facing, the sooner you address them, the sooner you can be free of the burden.

Ifama

Hi! This is Ifama. I am a student and giving my services in SEO. I have a lot of experience in digital marketing. Travelling is my hobby and I love visiting different hilly areas and doing adventures.

Filed Under: Commerce

Types of Independent Retailers

Last Updated on February 10, 2023 By Methew Harbor Leave a Comment

Whether it’s a small street-corner shop selling hot dogs or that huge departmental store in your neighborhood, both are independent retailers. You will find numerous independent retailers around you in everyday life.

Independent retailers usually begin small, but that is not compulsory. You may also see such retailers opening exquisite jewelry stores in the town. Independent retailers are widespread and cater to different needs of people. Let us tell you about the types of independent retailers in detail.

Table of Contents

  • What are Independent Retailers?
  • Types of Independent Retailers
    • Convenience Store
    • Departmental Store
    • Specialty Stores
    • Single–Business Corporate Retailing Stores
    • Automated Vending
    • Service Retailing
  • Advantages of Independent Retailers
    • Complete Control
    • Less Cost
    • Less Risk
  • Disadvantages of Independent Retailers
    • Takes Time
    • Complete Responsibility
    • Difficult to Resale
  • The Bottom Line

What are Independent Retailers?

Independent retailers refer to business owners who own the business solely. There are various advantages of being sole trader.

Independent retailers do not buy franchises or become partners in other businesses. They set up their own business according to their capital. Most business tycoons begin as independent retailers and work their way up to selling franchises. Independent stores vary from one store to up to three stores in different locations. Typically, the business needs partners or franchisers to manage the business further.

According to the National Grocers Association, independent retailers account for a quarter of the total retail industry sales.

Types of Independent Retailers

If you are looking forward to being an independent retailer, you can choose from different types of retailing businesses. Let’s tell you about them:

Convenience Store

The most common and popular form of independent retailer is convenience stores. Convenience stores are shopping areas with minimal items majorly constituting everyday grocery needs. They are open for longer hours than other kinds of stores. Many people prefer buying fresh stuff like eggs and milk from the convenience store near their house. Convenience stores help build community and are more of a community setup. They require less capital and cater to the daily needs of people.

Departmental Store

The next kind of independent retailing business is a departmental store. You can make significant money from a departmental store if you have sufficient capital. Departmental stores have departments that cater to different requirements. For example, a departmental store has the sports goods in the sports goods department, whereas lentils, rice, etc., are in the grocery department. They provide a large variety of options to the buyers. Most people buy groceries in bulk from departmental stores to save costs. It allows the customers to buy everything under one roof.

Specialty Stores

Besides convenience and departmental stores, specialty stores are independent retailers with their limitations. You may also find specialty stores of international chains like Sephora and Damas. But, remember that they are not independent retailers.

Let’s say that you open a store to sell skirts only. From mini-skirts to long pleated skirts – you have it all.

Sometimes specialty stores may have other related items as well. But, their focus is on that particular range people visit them for. Examples include perfume shops, candle shops, etc.

Single–Business Corporate Retailing Stores

Corporate retailing stores are a well-known type of independent retailer (some stores are also partnered, though). It refers to having stores in more than one location. It is an independent business until you do not sell one or more branches to other people. If you sell or buy franchises, it is no more independent retailing.

Automated Vending

Automated vending is a less-popular type of independent retailing. Yet, it is becoming common in different parts of the world. People are purchasing and placing vending machines in other locations. It requires less capital and gives you a certain return on sales. You do not have to sell the product physically. The vending machine will do the job for you. However, it comes with power and maintenance costs.

Service Retailing

woman on the Service Retailing

Besides selling products, you can also sell your services as an independent retailer. One common example includes salons and at-home grooming services. Many people offer grooming services for women at their doorstep. Usually, these businesses are managed single-handedly without partnerships.

Advantages of Independent Retailers

Complete Control

Independent retailers have complete control over the operational and financial aspects of the business. They do not have to worry about anyone else’s opinions about business matters and make independent decisions.

Less Cost

Being an independent retailer, you can start from any amount you have. You do not require a fixed amount to buy a franchise. You can invest as less or more as you want, and all the profit is yours.

Less Risk

You take calculated risks and add or subtract products or stores per need. The stakes are quite less when you do not have many stakeholders involved. It further reduces the risk when you follow an affiliate or coaching leadership style to benefit your employees. You only focus on your profit, employees, and customers.

Disadvantages of Independent Retailers

Takes Time

If you set up your independent retail business in a community with existing competition, your business may take some time to settle. People prefer trusted companies and will hesitate to try a new place. Yet, you gain trust and customer loyalty in some time.

Complete Responsibility

While entire control over the store or business is an advantage of this system, it also comes with complete responsibility. All independent retailers have to take responsibility for every action and decision. You cannot blame anyone else for a failed strategy or loss in business. As an independent business owner, you are accountable for everything regarding your company.

mans complete the responsibilities

Difficult to Resale

Partnered businesses may have many advantages, yet they are easy to sell. In such businesses, you either buy a franchise or make sales for another company based on a profit margin. As people trust those names already, you can easily find buyers or investors. However, an independent retailing business might not attract many purchasers until it is popular. You may face difficulties in reselling your independent business.

The Bottom Line

Independent retailers do not depend on anyone for capital or decision-making. They run their own setups instead of buying franchises or working for others. The common types of independent retailers include convenience stores, departmental stores, specialty stores, service retailing, etc. Independent retailing comes with full control over the operation and finances of the company. However, it also gives you the complete responsibility for the decisions and actions.

matt harbour
Methew Harbor

Matthew is a Co-Founder at BusinessFinanceArticles.org. Matthew was a floor manager at a local restaurant in Wales. He lost his job after the pandemic and took initiative to make a team and start the project.

Filed Under: Commerce

Disadvantages of Specialty Stores

Last Updated on November 16, 2022 By Methew Harbor Leave a Comment

Specialty stores are quite common globally, and many people prefer them over general stores. They allow you to choose from various products in the same category. However, specialty stores also have some drawbacks besides advantages. You cannot buy everything in one place and may need to visit multiple stores for different items. Or the products might go out of stock sooner as people needing a particular product visit specialty stores more likely.

Table of Contents

  • What are Specialty Stores?
  • Disadvantages of Specialty Stores
    • Less Convenient
    • Seasonal Influence
    • Less Variety
    • Fewer Customers
    • Market Dependency
  • The Bottom Line
  • FAQs 
    • What are the disadvantages of general stores?
    • What are some specialty stores examples?
    • What are the features of specialty stores?

What are Specialty Stores?

A specialty store refers to any store or shop with only products of one category. Most specialty stores have a particular product in various varieties. Let’s say a particular shop around your house has all kinds of bedsheets. As they specialize in bedsheets, it is a specialty store. But, if they start selling mats, crockery, sanitary, shoes, and everything else, it would not be a specialty store anymore. 

Specialties stores are common in areas where people have specific preferences. Many areas have specialty luxury cloth shops because the residents are more interested in buying branded clothes. Cities with a large population usually have multiple specialty stores to provide customers with a better experience. Sometimes the specialty stores expand and add other relevant items to the inventory. For example, a makeup store might also keep skincare items for sale, followed by perfumes and fragrance diffusers. They still call it a specialty store because the products are related to beauty. 

A common specialty arrangement is an apparel store. Sometimes, the stores have only particular clothing like jackets and coats. At the same time, some of them have clothes of all kinds. Both of them are specialty stores. 

Disadvantages of Specialty Stores

Here’s all you need to know about the disadvantages of specialty stores.

Less Convenient

The most noteworthy drawback of a specialty store is that it is less convenient. When people have a long list of items to buy, specialty stores are not their first choice. They prefer going to a general store or mart where you can find everything in one place. Specialty stores are also not the best choice for people looking to buy products on a large scale. Specialty stores are good if you want to buy a particular item. But, people find it inconvenient to travel to multiple stores for various purchases.

Seasonal Influence

The changing weather also influences specialty stores a lot. Many stores only specialize in objects suitable for a particular season, which can be a major disadvantage for specialty stores. For example, if you own a specialty store for beachwear, the sales will fall in the winter. It does not influence the customers as they can fulfill their needs from another source. However, store owners may experience lesser sales in the off-season. 

Less Variety

While specialty stores have various items in a particular category, they lack variety in others. Some stores have more than one specialty product related to one another. For example, a store specializing in clothes may have footwear as well. But, the variety of footwear will be less compared to other stores.

Departmental stores have sub-divisions within departments. It allows customers to look through a larger variety of items. Most people visit specialty stores when they have only one or two items on the list that they can find in the store.

Fewer Customers

Super store

Less choice also means fewer customers. Specialty stores are suitable for people looking for a particular type of product. Customers who want to explore more options usually head to a departmental store to have as many options. A person going to a specialty store typically knows what they need and is looking to pick up the item quickly. The queues are shorter in specialty stores because of limited options. 

Market Dependency

A major drawback of specialty stores is their market dependency. As specialty stores operate on only one or two kinds of items, they depend on their vendors significantly. It can be quite difficult to manage such stores in case of a back-end shortage. Specialty stores also suffer when people choose alternative methods. For example, a store sells scented candles, but the people in that area start using automatic fragrance dispensers more. It will affect the inflow of buyers and loss to the store.

The Bottom Line

Specialty stores are excellent for buying a particular product. Yet, a disadvantage of specialty stores is their inability to provide a large variety. A change in season and people’s choices also affect the sales of specialty stores. Study the needs of the neighborhood and the future of your products in the next few years before setting up a specialty store. 

FAQs 

What are the disadvantages of general stores?

While general stores offer many advantages, there are also some disadvantages associated with general stores. While general stores. Usually, finding a suitable space in a small town is difficult. A high influx of customers also means more damage.

What are some specialty stores examples?

Specialty stores for sports goods, flowers, books, furniture, and perfumes are quite common besides the examples mentioned above.

What are the features of specialty stores?

A specialty store’s main feature is that it only sells one kind of product. Other features include better customer service, high-quality products, more variety of a particular category, and better prices.

matt harbour
Methew Harbor

Matthew is a Co-Founder at BusinessFinanceArticles.org. Matthew was a floor manager at a local restaurant in Wales. He lost his job after the pandemic and took initiative to make a team and start the project.

Filed Under: Commerce

E-Commerce: How to Facilitate Payments to Increase Conversions?

Last Updated on October 11, 2022 By Ifama Leave a Comment

The important factor you can do to guarantee your organization’s success is correctly managing your cash flow. According to numerous research, there are significant cash flow issues due to accepting late payments. Because of this, it doesn’t matter how carefully you manage your cash flow; if you don’t get paid on time, you run the real risk of running out of money.

Table of Contents

  • Best Ways to Facilitate Payments to Increase Conversions
    • Create a Payment Arrangement in Writing
    • Have More Rigid Payment Terms
    • Keep a Regular Payment Plan that is Handy for your Clients
    • Request a Down Payment or Advance Payment
    • Offer a Range of Payment Options
    • Accept Payments Via Direct Debit
    • Regularly Send Payment Reminders
    • Make the Switch to Electronic Billing
    • Use a Platform for Payments and Orders
    • Reward Clients who Make Prompt Payments
    • Add a Late Payment Penalty
    • Examine your Invoices Frequently
  • Conclusion

Best Ways to Facilitate Payments to Increase Conversions

There are many methods you can encourage your clients to pay their bills on time that won’t hurt your relationship with them. The most efficient are as follows:

Create a Payment Arrangement in Writing

A formal contract between you and your customer that contains payment conditions, due dates, and other important payment information. To prevent misunderstandings in the future, talk things over together. On every invoice you deliver, you can underline the terms you’ve agreed upon; be sure to use precise language.

Have More Rigid Payment Terms

If you hope to satisfy your clients and ensure that paying is always convenient, offering flexible payment arrangements is wise. Remember that this can cause financial issues. Some clients will opt not to pay you on time no matter how accommodating your terms are because they are too disorganized and belligerent. Therefore, it is advised that you set a tighter payment deadline. To ensure that money will remain flowing into your company, it would be even better if you could arrange a shorter payment term.

Keep a Regular Payment Plan that is Handy for your Clients

You should tighten up both your payment terms and your payment timetable. Send invoices on the first and fifteenth of every month; be sure to follow a plan. This will assist them in managing their financial flow and teach them to make on-time payments a routine practice. 

Regarding the dates you select? Most of your clients will have a set payment deadline; this may be once per month and frequently applies solely to invoices received and processed two weeks earlier. Ensure you know the deadlines to meet those dates and the dates your customers process their payments. Then, plan the delivery of your invoices to avoid missing those dates.

Request a Down Payment or Advance Payment

New clients or those who place sizable orders benefit most from this. Today, E-commerce is the force multiplier for MSMEs. So ask for half of the payment to be made when the order is placed and the existing balance to be paid when the products are delivered. By doing this, you may be sure that you’ll get paid at least partially before the deadline, if not earlier.

Offer a Range of Payment Options

Your clients are equally as busy as you are. Since they have busy schedules, you must provide them with a simple payment option so they can still pay their invoices on time. Beyond the typical cash payments, it will be better for your business if you also take bank deposits and transfers, Cash on Delivery, payments made via mobile devices and the internet, and payments made using all of the major credit cards and debit cards.

Accept Payments Via Direct Debit

Lack of time to pursue late payments. The ideal tactic for you is this. The beautiful thing about direct debit payments is that they enable you to charge your clients routinely and automatically. Therefore, you can still get paid on time even if they are too busy or forget to process payments. But because there are so many procedures and guidelines to follow, setting up direct debits can be a real hassle. Utilize online resources or digital payment systems that can execute direct debit payments for you to make direct debits simple and worthwhile.

Regularly Send Payment Reminders

Sending clients pleasant reminders and inquiries regarding payments is acceptable. Not just the delayed or late payments, but; you may also remind people that the deadline is approaching. Utilize technology to put this up automatically so that your clients are being followed up in the background. Additionally, an automatic invoice system reminder is particularly efficient at getting payments in because it comes off as less intrusive, personal, and more like a routine, helpful piece of admin. Today, several digital solutions available may easily remind your consumers when payments are due by text message or email.

trolly-on-paper-and-mobile-in-hand

Make the Switch to Electronic Billing

Customers not paying on time frequently have late invoices as one of the main causes. By switching to electronic or online invoicing, these clients are no longer able to claim that their “invoice didn’t arrive” because it is always sent to them automatically as soon as an order is placed – better still, if they can log in and see it in a system in real-time. 

When you are in this procedure, it will be practical to accept payments tutorial for online businesses. What’s great about contemporary online invoicing solutions is that they can send out reminders for payments and even connect to digital payment systems, enabling you to charge your consumers promptly. You can now put more emphasis on your work, which benefits both you and your consumers. 

Use a Platform for Payments and Orders

Dedicated ordering systems enable you to accept and manage retail orders from a single dashboard while facilitating on-time payment. You may now concentrate on the other important chores because it can produce precise invoices and deliver them to your clients electronically.

Reward Clients who Make Prompt Payments

Offering incentives to customers is one of the most efficient ways to encourage timely payment. If you get their money in before the invoice due date, you can choose to thank them with gift cards or give them small goods discounts. Ensure your reward will motivate your consumers to make payments on time. You may quickly set up various pricing choices and discounts for your clients. 

Add a Late Payment Penalty

Unfortunately, some customers will still fail to pay their invoices on time, regardless of how generous your quick payment incentive is. What is the most applicable method for handling these clients? Add late fees to their account. It might be sufficient to draw their attention and persuade them to make a timely payment with an additional charge of 2%. To encourage your customers to make on-time payments, combine rewards for early payments with penalties for late ones.

Examine your Invoices Frequently

You must monitor and manage your invoices to determine which customers have or haven’t made payments. You can accomplish this by hand, or if you’re overloaded with administrative duties, you can use a computerized tool to assist you. Some web-based systems can immediately alert you to anyone who hasn’t paid, so you can go after them immediately rather than waiting for them to send their money in. These systems include the majority of accounting software.

Conclusion

No business owner enjoys pursuing late payments because it is a time-consuming chore. You may have an idea about what customer satisfaction is. Spending time and effort phoning customers to collect payment for bills reduces productivity and affects your present cash flow situation. But remember that not all of these suggestions will be effective for every business, so it’s always best to use a few different tactics to see which ones work best for you.

Ifama

Hi! This is Ifama. I am a student and giving my services in SEO. I have a lot of experience in digital marketing. Travelling is my hobby and I love visiting different hilly areas and doing adventures.

Filed Under: Commerce, Technology

3 Services Offered by Ecommerce Business Builders

Last Updated on June 29, 2022 By Ayesha Saeed Leave a Comment

By 2024, yearly global E-commerce sales will exceed $6 billion. It shows the growing demand and popularity of online shopping worldwide. However, with this increase in competition, it is essential to make sure your e-commerce website stands out.

Companies like Pietra, Inc. offer a wide range of services like sourcing to help you get your business off the ground and running smoothly.

This guide will discuss three of the most common services these professionals offer.

Table of Contents

  • 1) Order Fulfillment
  • 2) Social Media Integration
  • 3) New Product or Service Launch
  • Conclusion

1) Order Fulfillment

The first service that eCommerce business builders offer is order fulfillment. It involves taking orders from customers and shipping them the purchased products.

These business builders will take care of all of the paperwork associated with fulfilling an order, including creating invoices and packing slips. They will also make sure that the products are properly packaged and shipped to the customer promptly.

If you are opening a store, it is important to invest in order fulfillment software that can help build your e-commerce business. This way, you can focus on other aspects of your business, such as marketing and product development.

2) Social Media Integration

An e-business store is only as good as its ability to connect with potential customers on social media. Ecommerce business builders can help you create a social media strategy that will get the products in front of the right people. They can help you set up automated systems that make it easy to post your content and engage with your audience.

Building an e-business website is just the first step in creating a successful online business. You also need to make sure that your site is visible to potential customers and that they can find what they’re looking for. Ecommerce business builders can help you create a marketing plan that will get your site seen by the right people. They can help you track your results to see what’s working and what isn’t.

If you want to succeed in online commerce, you need to make sure that your website is up to par. Ecommerce business builders like Pietra can help you create a site that is fast, reliable, and easy to use. They can also help you add features that make it more likely for customers to buy from you.

3) New Product or Service Launch

If you’re launching a product or service, an e-business builder can help you get it off the ground quickly and efficiently. They can manage all the details, from setting up your online store to marketing your new product or service.

Launching a product or service is a big undertaking, and working with an e-commerce business builder can make it much more manageable. With their help, you can deal with other aspects of your business while they handle everything related to your online store.

If you’re worrying about launching a new product or service, consider working with an e-commerce business builder.

Conclusion

Starting a successful business or launching a new brand can be daunting. But with the help of e-commerce business-building services, you can get your business up and running quickly and efficiently.

ayesha saeed
Ayesha Saeed

A happy mom, professional article writer, SEO practitioner, blogger, guest blogger & freelancer. She’s been in digital marketing since 2018. She loves reading books and spending time with her family.

Filed Under: Commerce

18 Advantages And Disadvantages Of E-Commerce

Last Updated on February 18, 2022 By Methew Harbor Leave a Comment

E-commerce is a major contributor to sales globally, with 93.5% of internet users having made at least one purchase through the internet. E-commerce is growing at a rate of 23% per year, and it is expected that it will be a significant sales platform by the year 2040, with 95% of purchases being made online.

Table of Contents

  • What is e Commerce?
  • Advantages and Disadvantages of eCommerce
  • Advantages of eCommerce
    • Available 24/7
    • Larger Market
    • Lesser Cost
    • Convenient Buying
    • More Choices
    • Detailed Product Information
    • No Need to Go Out
    • Affordable Marketing
    • Access to Customer Data
    • Better Sales through reviews
  • Disadvantages of eCommerce
    • Lack of Direct Interaction
    • No Tactility
    • More Competition
    • No Guarantee of Quality
    • Long Delivery Time
    • Internet access Needed
    • Website Crashing
    • Bad reviews cause Huge Losses
    • Frauds
  • The Bottom Line

What is e Commerce?

E-commerce refers to making business online without interacting with the buyers physically. It is a modern approach to business, and more brands are moving towards e-commerce to boost their sales. E-commerce involves online selling and payments through online payment gateways. While it provides a space for people to sell their products without having a physical store to display their goods, there are also some disadvantages.

Advantages and Disadvantages of eCommerce

shopping-online-drop-shipping
AdvantagesDisadvantages
Available 24/4Lack of direct interaction
Larger marketNo tactility
Lesser costMore competition
Convenient buyingNo guarantee of quality
More choicesLong delivery time
Detailed product informationInternet access needed
No need to go outWebsite crashing
Affordable marketingBad reviews cause losses
Access to customer data 
Better sales through reviews 

Advantages of eCommerce

Available 24/7

Can customers go to their favorite apparel store at 5 in the morning and get the jacket they need for a trip urgently? No.

But can they order? Yes.

When you set up an e-commerce store, you are 24/7 open and available to your customers without any time restriction. They can place an order any time of the day, and you can dispatch their goods at the soonest to engage the customer and convince them to buy from you often.

Larger Market

The world has become a global village, and e-commerce is the best product of this global village. Websites are worldwide, and you can reach potential customers across oceans if you want to. Even a high school student can do it too. E-commerce gives you access to people globally to expand your business by catering to a large number of people.

Lesser Cost

E-commerce stores are a one-time cost and do not require continuous maintenance. While you may need 4 employees to run a physical store, e-commerce stores do not require the same workforce. Online selling also saves the cost of electricity and other forms of maintenance in the store, eventually decreasing your monthly expenditure. E-commerce stores are more automated, avoiding human error and reducing the need for many staff members.

Convenient Buying

Online sales have rocketed in the past years. Do you know why?

E-commerce allows people to buy at the comfort of their homes without going out. Everything they need is readily available on the internet, and they can buy quickly, just with a single click. Many e-commerce stores also provide the option of replacements where they pick the purchased good from your home. E-commerce is every busy shopper’s dream come true.

More Choices

Anyone might not have enough time to visit one store to another, you can always scroll through multiple stores online. The presence of hundreds of options online gives you more choices to select from, offering a wide range of colors, designs, sizes, and material quality. With so many options, you are more likely to easily find what you want.

Detailed Product Information

Another benefit of e-commerce is the information mentioned with each product for ease. Customers do not have to ask the seller about the features of the product as the product description and details give it all out themselves. You can find all information about a product on the e-commerce store or search engines to make the right choice of purchase.

No Need to Go Out

Online buying has made accessibility easy than ever before. If you do not have enough time to go out and buy the pack of cheese for dinner, order it right away, and it will be at your doorstep in a few minutes. While sometimes you have to pay a minimal delivery fee, e-commerce does not only save time but also cuts down fuel costs.

Affordable Marketing

We won’t say that billboards and TV advertisements are gone, but the era of digital marketing has definitely taken over. Now, most businesses are looking forward to digital marketing and making the best use of social media platforms to market their products to a wider audience. Digital marketing costs less than traditional marketing, and your product reaches a global market.

Access to Customer Data

Online selling gives you access to customer data and enables you to design your store according to customer needs. You can add products that your customers usually look for and cater to the needs of potential customers in a better way. By targeting the right customers with the products they need, you can make them choose you more often.

Better Sales through reviews

Reviews on the internet are just like words of mouth but reach more people. Reviews and testimonials are one of the most effective ways to enhance sales through e-commerce. Reviews on the website by your satisfied customers help new buyers make a decision about the product, and you sell more.

Disadvantages of eCommerce

Lack of Direct Interaction

One of the major drawbacks of e-commerce is the lack of direct interaction. Interactivity and body language are two vital components of communication, and they both are lost during online dealing. This loss of interaction during selling products online sometimes makes the customers move to retail shopping to understand the product better.

No Tactility

Besides not being able to communicate face-to-face with the sellers, the customer also misses the experience of touching and trying the product before buying. Many customers want to try a particular product such as shoes, clothes, spectacles, and others to make sure they are the right fit, but this is not possible in online shopping.

More Competition

E-commerce allows everyone to create a website and have their online store, increasing the competition among sellers. Buyers visit multiple stores within minutes and choose the one with better quality and lower price. High competition makes business difficult on e-commerce platforms as customers tend to choose products that cost less, and store-owners have to keep prices competitive.

No Guarantee of Quality

Talking of buying something online, there is no 100% guarantee of the product’s quality when it reaches you. It may be the same product as mentioned, but the rate could be worse than you imagined. When setting up an e-commerce store, it is important to ensure that your quality is unparalleled to keep customers loyal to your brand.

Long Delivery Time

Ordering and receiving goods is incredibly easy with online shopping, but not that quick. It usually takes 2 to 3 business days for the purchases to deliver and more if you are ordering from a distant place. Sometimes people avoid shopping online if the store does not offer urgent delivery if needed and prefer to go and buy from a retail store.

Internet access Needed

E-commerce is highly dependent on the availability of the internet as you cannot buy anything online in the absence of an active internet connection. Internet access is a must for online shopping to add an item to your cart and make payment through the card. Some website functionalities need a high-speed internet connection and may not be accessible to buyers with slow internet.

Website Crashing

While the need for the internet is inevitable when going for e-commerce, it may have a few other problems. Having an e-commerce store always comes with the possibility of your website crashing or having a glitch that may push your customer to move to another site.

Bad reviews cause Huge Losses

Let’s say you have a bad day and deliver a wrong product to a customer, and they leave a bad review. You may try to fix it, but sometimes buyers are very critical about service and do not hesitate to leave a bad review right away.

Reviews are as risky as beneficial they are for e-commerce. Good reviews can help you get more customers and direct them to your website; bad reviews can stop potential customers from buying from you.

Frauds

Online shopping comes with numerous security issues and has higher chances of fraud. As people usually pay for purchases through their credit or debit cards, there’s always a risk of stealing information leading to money fraud. If any such scam happens after shopping through your site, the customer usually leaves a bad review, and the word spreads like wildfire. Ensure a safe shopping experience for your customers by providing security and cashback when needed.

The Bottom Line

E-commerce is growing massively, hundreds of females started the business with low investment in recent years at there are a wide market and hundreds of product options to sell and the dimensions of shopping are changing. Now more people are moving towards online shopping as it offers numerous advantages like having more options, getting all information about the product, and the possibility of ordering from an online store any time of the day.

Besides the advantages, some disadvantages also come along, like lengthy delivery time and uncertainty about the quality of the product. Despite the disadvantages, e-commerce is expected to expand more with most purchases and transactions made online. If you are looking to set up online, give it a try with any of these profit generating ideas.

matt harbour
Methew Harbor

Matthew is a Co-Founder at BusinessFinanceArticles.org. Matthew was a floor manager at a local restaurant in Wales. He lost his job after the pandemic and took initiative to make a team and start the project.

Filed Under: Commerce

7 Advantages and Disadvantages of Centralization

Last Updated on January 12, 2022 By Methew Harbor Leave a Comment

If a centralized authority is omnipresent, it’s easy to say that centralized systems are bad. But what does it mean to have a centralized system? In this article, you will find the advantages and disadvantages of centralization and how to decide if it’s perfect for you.

Table of Contents

  • What is Centralization?
    • Advantages of Centralization
      • Efficient decision making
      • Improved work quality
      • A clear chain of command
      • Focused work vision
      • Less operational costs
      • Proper communication channels
      • Uniform Actions
    • Disadvantages of Centralization
      • Bureaucratic Leadership
      • Employees are not loyal
      • Poor work control systems
      • No individual initiatives
      • Slow Work
      • Decreased efficiency
      • No work specialization
    • Is your Business Centralized?
    • What is the Best Centralization Strategy?
  • Final Takeaway

What is Centralization?

Centralization is when a single point of control is in charge of all the business decisions, planning, information, and resources. It also means that the head office should control all the resources and information.

Centralization makes it easier for a single person to make decisions and deal with the people and resources that make the business run. It is the process of having one person or team lead all of the operations and functions of the company. But no system is perfect, so it has got a few cons too.

debt management plan pros and cons

Advantages of Centralization

A centralized approach can give you greater control over your business and give you a larger platform to grow your business. Now let find what your business can do with centralization:

Efficient decision making

In a centralized structure, the decisions are made by top management. It makes the decision-making process fast and efficient. Important decisions can be taken immediately and coordinated with all relevant branches and managers. It is much important at unsustainable times to keep the organization working smoothly.

Improved work quality

With pre-defined procedures and duties, each employee knows their responsibilities. It results in a better quality of work. With managers supervising departments, the uniform outputs have high quality.

A clear chain of command

The centralized organization has a clear chain of commands and a defined hierarchy of authority. There is a clear path of authority delegation, and junior employees know who they have to report to. Centralized organizations normally have a taller structure with the vertical chain of commands following from directors to managers and then employees.

Focused work vision

A clear mission statement and goals are a vital part of centralization. Such organizations have a focused work vision with clear communication lines and work delegation to achieve it.

Less operational costs

With a clear chain of command, the operational costs are as everyone has defined responsibilities. Key players take decisions from the company headquarters and delegate them to the right persons. It reduces the outsourcing costs as everyone is well aware of his job responsibilities.

Proper communication channels

Proper communication channels are established in centralization. It helps indirect supervision and control to facilitate quality results without any work duplication or quality issues.

Uniform Actions

Uniformity of action is another perk of centralization. The decisions from the top are delegated and performed by relevant individuals. Each organization branch has specific equipment and skilled labor.

Disadvantages of Centralization

Centralization can be risky as it can lead to other problems. The biggest risk is that you’re not able to get the best talent to work for you. Central control results in uniformity of actions to bring smoothness and efficiency in tasks execution.

Bureaucratic Leadership

Centralization is similar to the Bureaucratic structure. Here the employee’s work is only to implement the decisions and follow senior management instructions. The low-level staff feels demotivated as they have no input in the decision-making process. If there is any inconvenience in work, then the senior management blames employers for that due to the bureaucratic leadership style.

Employees are not loyal

In centralization, employers are treated more like working machines. As a result, most employees are not loyal in centralized organizations. Employee loyalty comes from personal initiatives. They can introduce their creativity and suggest ways of performing certain tasks.

Poor work control systems

Executives form decisions to be implemented by employees. But if they don’t have an efficient control system to get work done from employees, it will fail to get the desired job done. Employees gradually become reluctant to perform, which results in poor decisions at the executive level that never get implemented.

No individual initiatives

The main problem of centralization is employees are not involved in the decision-making process. With it, unique ideas and initiatives are never appreciated. It prevents employees from making any suggestions and decisions. They follow the procedure as it’s written.

Slow Work

Centralization results in slow work. The decisions passed from the top take considerable time to take effect and get the job done. Due to formalities, the work implementation is always slow.

Decreased efficiency

Due to the bureaucratic leadership, slow work with no individual initiatives, the employee’s work efficiency decreases adversely.

No work specialization

A jack of all trades in the master of none. As a single individual takes all decisions in a centralized structure, the organization lacks efficient handling of special tasks.

Is your Business Centralized?

If you are in charge of your own business in some way, ask yourself some tough questions. While it’s important to have some autonomy when running your business, what is it that gives you that autonomy?

It’s important to have some autonomy in your business, too, if you are its owner. If your business is in any way centralized, then you are, in essence, taking control of it under someone else’s power. And though centralization is not always bad, it is very important to make sure that you do not keep your business centralized.

What is the Best Centralization Strategy?

A centralization strategy is a strategically implemented requirement that an organization or business must adhere to. It is generally defined as the requirement that an enterprise must implement to address concentrations of power and reach an ever-increasing level of performance and efficiency. Most centralization strategies require the development and implementation of processes and practices that can ensure compatibility and consistency.

It is a way to organize your entire business by having a central repository of information that’s centralized. It makes it easier for you to get your information on the road and work on your business operations on the same platform.

Final Takeaway

Maybe it’s not good for you to centralize your business structure, but if you’re good at risk analysis, you can still use centralization in certain situations. With the advantages and disadvantages of centralization, you can decide the best for your business. In the end, what you want from a system is equal advantages. If that’s not possible, then it’s time to ditch the system altogether.

matt harbour
Methew Harbor

Matthew is a Co-Founder at BusinessFinanceArticles.org. Matthew was a floor manager at a local restaurant in Wales. He lost his job after the pandemic and took initiative to make a team and start the project.

Filed Under: Business, Commerce

Consumer Behaviour – The Things to be Aware of Moving Into 2021

Last Updated on February 18, 2022 By Ali Dino 1 Comment

For many worldwide economies, the pandemic shows no sign of easing, with the UK under its third national lockdown and having significant impacts on consumer spending and confidence. 

Overall, consumer spending fell in December at the fastest rate in six months as the lockdown began to hit hard, while Barclaycard revealed that investment has contracted by 2.3% year-on-year.

With this in mind, we’ll use this article to explore changing consumer behavior against the backdrop of the pandemic, as we ask what entrepreneurs should be aware of through 2021?

1. The Rise and Rise of Ecommerce

While total consumer spending may have declined since March 2020, this has much to do with the restrictions placed on pubs, bars, and restaurants nationwide.

However, there’s no doubt that the pandemic has driven a sharp increase in global online sales, as shifting consumer behavior accelerates the trends towards eCommerce.

Overall, it’s thought that Covid-19 added an estimated £5.3 billion to UK eCommerce in 2020, with the market’s performance forecasts upgraded from £73.6 billion to £78.9 billion as a result.

Amazon alone was expected to add £2 billion following the surge in online shopping, and there’s no doubt that the demand for eCommerce will continue to increase sharply in the near term.

2. The Rise of Impulse Buying Online

Over time, consumers have become increasingly enticed by so-called “rewards systems”, which seek to place a viable value on loyal customers and help to incentivize impulse purchases.

From a psychological perspective, customers in this instance are typically driven by ‘FOMO’ (the fear of missing out), while the mere activation of reward system structures is proven to trigger various neurons and stimulate genuinely pleasant feelings.

Even the use of single words such as “sale” or “deal” can trigger such neurons and make rewards programs effective, and they represent an excellent way of optimizing sales during periods of economic austerity.

So, now is the ideal time to create a tailored and rewarding loyalty program for your customers, as this will have the dual benefit of boosting your coffers and stimulating the wider economy.

3. Creating an Immersive Omni-channel Experience

Historically, larger eCommerce players have sought to separate online and offline consumer experiences, instead choosing to create more integrated marketing campaigns that drive a higher prevalence of assisted conversions.

This type of campaign creates an immersive, omnichannel experience for customers, while it also taps into wider trends such as rising e-commerce and the growing influence of smartphones as purchasing tools.

This trend will only gather pace in the near term, with even brick-and-mortar stores being redesigned with mobile purchase points as part of wider social distancing measures.

Make no mistake; as customers continue to research and purchase products while they’re on the move, omnichannel campaigns will become increasingly effective and commonplace across the board.

Ali Dino

I am a professional blogger share guide about the Technology, Internet, WordPress, Blogging tutorial, SEO techniques, and getting traffic to the Site. I love to learn new things related to the latest technology, if you have anything in your mind please do share it with me at alidino15ch28@gmail.com Also, You can check out the informative articles at bhtnews.com

bhtnews.com/

Filed Under: Business, Commerce

Why You Should Always Have a Lawyer Look Over Your Contracts

Last Updated on October 6, 2021 By Denis Woods Leave a Comment

No matter what sector your business operates in, you are going to have to handle contracts at some point. They are a necessary part of your operations, be it a contract with an employee or a new deal with a supplier. As a result, you need to make sure that these contracts are as airtight as possible. Having your solicitor look over them is often a great move. Let’s take a look at why it is so important that you have a lawyer from Hastings to take a look at your contracts.

Compliance

One of the most important reasons to head to a lawyer will always be a check your compliance in certain issues. For example, if you are aware that some laws regarding employment have changed recently, you might want to get them looked over by experts in employment law.

Solicitors are the experts, and they are able to stay up to date with the changes constantly taking place within the world of employment law. As a business owner, many of these compliance issues will apply to your company. Before issuing a new contract to anyone, have a lawyer look it over to ensure that everything is up to date.

Of course, many employers – particularly when they are new – are reticent to take out a retainer until they are able to answer the question, how much do solicitors charge? There is plenty of scope for smaller businesses, however, as hourly rates can still be opted for over and above a retainer as your business moves through the early stages of employment.

Improvements

In addition to compliance issues, a lawyer might also be able to suggest improvements that you could make. Many try to initially draft their contracts themselves. However, the issue here is that there might be key clauses that are left out, or they might not be as strong as they could be.

By giving the contracts to a professional lawyer, they will be able to make improvements to the existing legislation to make it even better. You want to ensure that all of your contracts are as tight as possible for the most benefit to your company.

Reassurance

You might want to seek the advice of a lawyer not just when you are issuing contracts but also when you receive one. If you are not familiar with legal jargon, it is always a good idea to have an expert look things over.

Though we want to go into business with an open mind, there is no guarantee that a potential partner or supplier might slip a term in that you are not happy with. However, your lawyer should pick up on it when they review the document and can bring it to your attention. Having that extra reassurance in place can bring peace of mind to many.

No matter if it is just a small agreement with a new supplier or a big deal that could change everything for your company, you need to make sure that you have a lawyer look over the contracts at some point. It might not even be for a deal – it could be before you hire a new key team member. Whatever the reason, having a second appraisal of a contract before you either sign it or issue it is always going to be helpful.

Denis Woods

Danis Woods in Businessman, investment banker and stock exchange traders. On the same time he loves writing financial blogs to shed lights on different aspects that new and existing businessman are not aware of.

Filed Under: Business, Commerce

How to Start an Investment Partnership

Last Updated on November 30, 2020 By Lisa C. Townes Leave a Comment

Before knowing the procedure of starting the investment company you have to know what is “investment partnership”? 

Investment partnership is unlike to common business company. The basic definition of partnership means the “contribution of two or more individuals in the business”. So, an investment partnership means all the partners involved in this partnership have different liabilities and tax benefits. There is one general partner that makes decisions on a daily basis and makes a business structure. In simple words, that partner has managerial responsibilities. Other partners are not involved in managerial activities. That partner can be an individual or any entity that upholds all the managerial activities.

Who will own the managerial activities is written in the agreement. This agreement also involved the proportion of profit and loss, resolve disputes and change in ownership structure, etc.  The proportion of profit and loss is divided according to their investment ratio. They can invest money, property, labor, or skills. Investment partnership is also called limited investment company or limited partnerships.

Table of Contents

  • How to Start an Investment Partnership?
    • Agreement with Partners
    • Apply for GST and ABN
    • Having Tax File Number (TFN)
    • Need for a Lawyer
  • Final Words

How to Start an Investment Partnership?

There are different steps to start an investment partnership or limited partnership.

Agreement with Partners

Making an agreement is an essential part of this partnership. This agreement is made between the partners that include all the important points like the percentage of loss, profit, responsibilities of every partner, limitations of every partner, who will govern the managerial activities, etc.

Here a question arises “Why this agreement is important?”. The answer is very simple that is to avoid any future issues. When you decide to start an investment partnership you should have in your mind that you will face many difficulties. That’s why to make an agreement between the partners is an important part of this business.

Apply for GST and ABN

To start the investment partnership, you apply for the ABN.  You get ABN after register your business name. Once you have registered for ABN, the next step is to apply for GST on the behalf of ABN.

Having Tax File Number (TFN)

Every partnership must have its own TFN. Every partner in this business has his own superannuation that is very important for the partner and also for the partnership. In an investment partnership, one important thing is to look after the superannuation arrangements of each employee or partner.

Need for a Lawyer

In every partnership business, the need for a lawyer is mandatory.  All the paperwork (agreement) is done with the help of a lawyer. Your lawyer gets approval from the court and your company name registered. After name registration, you can work officially.

Final Words

Investment partnership includes two or more persons. This partnership business starts after an agreement. This agreement has all the important points related to the business like profit, loss, and manager name, etc.

 After the agreement, one person becomes a general partner having all managerial responsibilities while others work as co-workers. The manager assigns the duty of their co-workers. For becoming the partner you can contribute assets, money, skills, property, and labor.

You can start your company after officialized your company name. First, you name your company, then take the application form from the country’s capital. You fill the form and attach the required documents. After that, you need a lawyer for court work. Your lawyer helps you to officially register your company name.

lisa
Lisa C. Townes

Lisa is a passionate travelers. She spends 3 months every year visiting different places worldwide. She has visited almost every famous place in the world. She herself is an affiliate blogger

Filed Under: Business, Commerce

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