Some Geographical Boundaries of Mobile E-Commerce
A convenient point to begin is to ask whether there are geographical boundaries with mobile e-commerce. This is a sensible question anyone can rush to provide an answer to. But if you take a closer look or second thought, you will discover more to the question.
Ecommerce business is ordinarily not affected by physical location. Their operations are online. Customers can check through the available products online, shop, and make payments online without any staff taking them around. The customer can do this in the comfort of his bedroom, his car, phone, etc. This is how the location is defeated.
Interestingly, customers can even have the goods delivered to an address of choice. Yet, without going anywhere and without consideration for the location of the e-commerce business. If this can be done regardless of the location, how then do we come about the geographical boundaries of mobile e-commerce?
An e-commerce business, like every other business, must be situated in a particular location. It is expected to have an office where staff and customers can have physical contact. Several people do not believe in any business except they can contact them physically. This is part of the geographical boundaries limiting e-commerce business.
Cost Of Running Business
Some locations require lots of finance to start and run a business. Imagine starting your e-commerce business with a lesser cost of running a business, and you want to cover more places. How are you supposed to maintain the same price for such locations too? This is why some e-commerce businesses are geographically bound to certain places.
Some businesses or products are cheaper to purchase in some locations. This may be because of the availability of raw materials or that the city is known for such business. It may also mean that they are known for a specific skill. It means you can’t put a different price for such locations on your e-commerce platform. This explains why your e-commerce business may not penetrate some locations.
Cost Of Living
Cities within a nation do not all have the same standard of living. So, why it is okay to buy a specific product at a particular price in a location, another location residents may consider that as too expensive. That means they may never purchase it or try it. They may be okay with a lower quality of lesser amount or outright avoidance.
This is one of the reasons e-commerce businesses are limited to geographical location. They are trying to avoid paying taxes in other places when the operations may not be yielding high. Of course, businesses are not meant to be done in places without tax remittance. It’s business wisdom to limit expenses as much as you can.
With this little piece, I believe you must have understood why some e-commerce businesses are geographically bound to some locations. Let’s hear from you; share your opinions with us in the comment section below.