Advantages and disadvantages online trading companies.

An online trading company is a trading company that primarily operates via the internet and its electronic commerce tools. Much like any regular trading company, online trading businesses specialise in buying goods from manufacturers and selling them on to consumers or other retailers. However, the online nature of this business makes it different, presenting specific benefits and limitations. Selling goods online offers huge opportunities and advantages, allowing you to trade on a global scale and save on organisational and administrative costs such as wages, office rent and others.

The main difference is that a 100% online trading company (without any physical shops whatsoever, just headquarters and storage facilities) needs a virtual rather than a physical infrastructure. An offline trading company needs offices, shops, storage units and a logistics network linking suppliers, offices and outlets; an online trading company requires offices, storage units, powerful servers and websites, as well as a flexible logistics system that allows it to serve customers scattered across many locations.

 

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