Does Location Matter for Your Online Business?

Online business is booming along with the rapid development of the World Wide Web across physical and virtual worlds. What makes online businesses ideal, most especially in these times, is that it allows people to save time and effort in transacting with businesses for products and services, and at the same time it gives businesses the opportunity to gain a wide range of potential customers.

Despite all the benefits of having an online business, online entrepreneurs tend to overlook that having a good physical location is also a key factor in the success of their online business, thinking that just by having a virtual presence will suffice. If you want to know why the location of your business matters despite already having an online presence, keep reading below.

1.   Reputation

Starting a business is all about reputation-building or name-building. It is having quality products and services that are consistent over time. Consequently, the location that is visible for the online customers gives them the idea that your brand is indeed trustworthy along with the quality that it provides them. The location of your online business will also give them the assurance that the business is stable and firm with its formation or establishment.

2.   Legality & Cost

Despite you using the online platform for your business, legal matters will remain essential. For instance, a limited liability company (LLC) that operates online should still comply in submitting important files and documents for their business to legally operate. However, rules and regulations may differ from one state to another. Some states are more strict while others may be a bit more lenient. LLC formation costs may also differ depending on the location the owner chooses to form their business.

If, for example, you plan on forming your LLC business in Illinois, you need to do adequate research regarding the business documents you need to file. It is also advisable to know how much does an LLC cost in Illinois, and compare it with other states. For instance, the cost in forming an LLC in Illinois is $150 which is cheaper than a $200 fee for a New York LLC formation. Knowing that states have various rules and laws for LLCs, most especially for its cost of formation, carefully choosing your business location is important.

3.   Efficient Logistics

A good location is also key to efficient logistics. When you’re in a location where it’s almost accessible for everyone, this will help your products flow smoothly. This might help you to attract customers and potential partners in the future once they see that the delivery process will face minimal to no difficulty.

4.   Easier Access to Resources

Having an online business will be as stressful as having a physical one, no matter what type, and this includes searching for resources. In this matter, your business location is still involved in geographical and economic factors. For instance, some resources are more available and easily accessible in a particular location in which may be ideal for your business operations. Hence, replenishing your stocks can be done more easily and conveniently.


In these trying times, online businesses are indeed vital as it facilitates humans to acquire essential needs without going outside. The pandemic has extremely affected the economic systems yet through online businesses, obtaining basic needs are still possible and attainable. When you are planning to build one, you might also consider the location for the abovementioned factors.

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