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In the rapidly evolving world of e-commerce in Saudi Arabia, many entrepreneurs and investors start their online stores without determining their exact business type: Will they sell tangible products, digital services, or professional services? This question is crucial because it impacts the store's operation, marketing, pricing, and even customer interactions. In this blog, we explain the fundamental difference between selling products and services in online stores, so you can choose the path that best suits your ambitions.
1. Simple Definition: Product or Service?
• Products: These are tangible items that you can hold and ship, such as mobile phones, perfumes, clothing, and stationery.
• Services: These are work or skills provided to customers without a physical product, such as logo design, consulting, remote training, installation, or maintenance.
2. Delivery Method
• Products require shipping and delivery, which is where shipping companies, cash on delivery, or online payment come in.
• Services are often provided online or through direct communication; they do not require shipping or storage.
For example, if you have a store that sells watches, you'll need to store and ship them. If you offer a photo editing service, you can receive them via email or website.
3. Inventory Management
• For products: You need inventory management, tracking quantities, checking what's left, and asking the supplier if they're out.
• For services: There's no "inventory," but there's a schedule and a specific workforce.
This means that if you offer interior design services, you can't handle 100 clients at once. You need to manage your time and schedule.
4. Pricing and Cost
• Products: The price depends on the cost of production or purchasing, shipping, and packaging.
• Services: The price depends on time, effort, and skill, and the profit margin is often higher.
In Saudi Arabia, many freelancers sell digital services at competitive prices and with excellent profits without significant operating costs.
5. Expansion and Operation
• Products require capital for expansion (purchasing larger quantities, warehouses, and employees).
• Services can expand more quickly if you hire a team or use automation tools.
This means that if you start with a website design service, you can later add services such as social media management or search engine optimization.
6. Customer Experience
• In products: The experience depends on the quality of the product, packaging, and speed of delivery.
• In services: The experience depends on your communication skills, quality, and the timeliness of the service.
Some customers prefer dealing with people who listen to them and provide direct solutions, especially in areas such as consulting or business services.
The difference between selling products and services in online stores is clear, and each type has its advantages and challenges. But the most important thing is to determine what suits you, your passion, and the nature of your audience. In the Kingdom of Saudi Arabia, opportunities are open to everyone, whether you sell perfumes or provide business consulting. The most important thing is to choose the model that helps you build a successful brand and serve your customers in the best way.
And if you're thinking of starting your own online store, don't worry about technology!
A ready-made team will build you a professional store that meets your needs, whether you're selling products or services, and support you every step of the way from start to growth.
كيف تساعد خاصية "فلترة المنتجات بالخصائص" في تسهيل الشراء
الفرق بين استخدام صور العملاء الحقيقية للمنتج وصور الاستديو
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