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SpinDistribute.com Article Directory

The following article was published in our article directory on December 9, 2011.
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Pros and Cons of Setting Up an Online Store at an Online Shopping Mall

Article Category: Shopping

Author Name: chickie maxwell

Online stores provide the benefit of convenience for consumers who do not have much time to visit a brick and mortar store or shopping mall. Countless entrepreneurs have joined the ranks of successful business owners who have decided to harness the power of technology to increase their profit. For those who are contemplating on having one for the business, here is information that will help demystify the concept of online stores:

Online shopping malls serve as the virtual counterpart of a real shopping mall. The main page serves as a portal wherein customers are directed to a listing of stores that the cybermall is servicing.

Online malls ensure their visibility on search listings (through the use of keywords, etc.) in order to generate traffic.

Online malls may allow its stores to create product reviews and other related articles. In addition, some malls will teach store owners on how to generate more traffic to their stores through the use of keywords and other methods.

As a way of giving back to the community, some online malls establish relationships with selected charities, schools, and nonprofit organizations. A common approach is to ask customers to select an organization they want to help from a list. After a successful purchase a portion of the proceeds are automatically paid to the organization chosen by the customer.

Joining an online shopping mall provides an opportunity to reach a broader customer base. An online mall is also a small community made up of its "tenants". Not only does an online mall generate networks among customers that visit the store, it also creates a network among fellow store owners wherein business knowledge and best practices are shared.

On the other hand, setting up an online store does have its disadvantages. Online store owners are advised to set their expectations with regards to the disadvantages of joining a cybermall:

Being listed in an online mall directory is like being listed on a classified ads page of a newspaper or the white page listings of a phonebook. The chances of customers finding your online store depend on where you are listed on the directory.

If your product caters to a very limited niche in the market you may have a hard time finding customers. On the other hand, if your store offers very common items, the sheer number of competing stores may drown out your chances of being noticed.

Some online malls require membership in order to gain a spot on their listings wherein payment of a fee is required. This provides a sense of exclusivity and lesser competitors. Some online malls may demand a certain percentage of your sales as commission.

Before committing yourself and your online store as a member of an online mall, always discuss important arrangements such as access to customer email addresses, placing URLs, as well as provision of store "space".

Doing business at an online store takes patience and a risk-taking attitude. Results may not appear immediately and may take some time. In addition, stiff competition on common products could reduce your chances of being noticed.

Keywords: shopping mall

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