5 Benefits Of Owning An E-commerce Franchise
Owning your own franchise can be a great way to succeed in an existing business model that has been proven to work. When most people think of the word franchise, the first thing that comes to mind is large businesses such as Mcdonalds, The Brick, or successful restaurants that are spread out across the province. However, today, there are new opportunities in owning a franchise with an e-commerce backbone, which can provide a significant advantage over the traditional brick and mortar franchise concept.
So today, we will list 5 benefits of owning an e-commerce franchise, and why it may be a good idea to pursue this model in 2021 and beyond!
Cost Advantages
One of the greatest advantages of owning an e-commerce franchise business is the low overhead costs involved. The expenses of a traditional franchise business often entail buying expensive commercial space that requires a high renovation investment. These can include properties such as retail shops or restaurants. Other expenses can include décor, multiple building maintenance costs, along managing a larger staff payroll.
An e-commerce franchise is significantly cheaper to purchase and run, as all you’re required to buy is a domain name and website, and potentially a warehouse if you're controlling the physical aspects of product delivery. What does this mean for you as a franchisee? You can spend the rest of your budget on other important aspects of your business such as marketing, advertising, and web development.
Open For Business Around The Clock
Another great advantage of an online franchise is that the e-commerce stores are open around the clock, meaning you can generate revenue 24 hours a day, 7 days a week. In addition, an online business model can take away the restrictions of where people can shop. Your customers will be able to visit and purchase your products from abroad, with the exception that you are able to ship the item to their desired location. Unlike conventional or traditional franchises, e-commerce businesses have no limits and are not restricted to their physical location or hours of operation.
A Less Invasive Shopping Experience
It is no secret that a large number of people often dread walking into a traditional brick-and-mortar store when required to interact with salespeople or employees. Shopping online can provide the consumer with a non-invasive experience by allowing them to take full control of their buying experience, making this one of the greatest benefits of the e-commerce business model.
The customer is able to do their own research while still having the ability to get in touch with the business through mechanisms such as online chat, email, or by phone. Ultimately, there is far less pressure for the consumer, which can even help with increasing conversions by reducing tension and eliminating a negative user experience.
Quick Scalability
One of the greatest benefits of an e-commerce business is its ability to scale quickly when compared to traditional franchise models. By leveraging social media and increasing your ad budget over time, you will be able to increase your investment as your business grows, thus allowing you to gain more reach over time.
With traditional brick and mortar stores, it can make it difficult to get enough eyes on your goods and/or services, as it limits the potential of your business. It also becomes much more costly doing things the traditional way, as you’ll need to find a larger space, which requires more renovation after waiting a lifetime for your lease to end in order to move forward. With an e-commerce model business, you can use the power of the internet to target audiences wherever you want, and as fast as you want.
Affordable Employment
Ever wondered why the markups in commission structured businesses are so high? The costs of employing multiple staff, running HR, along with several departments can create huge overhead, thus requiring inflating prices in an attractive way to customers. With an e-commerce franchise, you can significantly reduce the number of employees needed in order to effectively run your business, thanks to the power of leveraging online tools.
This is why businesses such as ours (National Mattress) can afford to sell products at almost half the price of traditional brick-and-mortar stores. We are willing to sacrifice the fluff for the benefit of our shoppers and help them get the same best quality products from trusted brands, at a fraction of the cost!
