There is no doubt that the retail landscape has undergone a substantial transformation since the COVID pandemic started in 2020.
The opportunity of selling online has not only helped many businesses survive during this frightful period, but it has also seen them earn more and grow substantially.
Like any other business strategy, there are many plus points to e-commerce, and in this article, we’re going to discuss the Top 5 benefits of joining the e-commerce revolution.
But first, what is e-commerce?
In a nutshell, e-commerce is the process of buying and selling goods on the internet.
It consists of two main categories, namely:
- Business to Consumer (B2C): Refers to online sales made directly from a business to a consumer through mobile apps & websites.
- Business to Business (B2B): Refers to all online sales between two companies. It can also refer to sales made as a part of online marketplaces like Amazon and eBay, where many third-party sales happen.
While some businesses have decided to keep their storefronts and add (or upgrade) their digital offering, others have decided to take the plunge, ditch their physical stores, and go all in.
We don’t blame them, and here’s why:
- In 2019, an estimated 1.92 billion people purchased goods or services online (Statistica)
- Sales at physical stores in the US dropped by 14%, or $4.2 trillion in 2020 (The Washington Post)
- Brick-and-mortar retail sales had a 3.2% decline in 2020 (E marketer)
- E-retail sales surpassed 3.5 trillion US dollars worldwide in 2019 (Statistica)
- US e-commerce sales grew more than 30% between the first and second quarter of 2020 (US Department of Commerce)
Without further delay, here are our Top 5 reasons why adopting e-commerce is valuable to your business:
1. Always Open
Unlike physical shops which are restricted by trading hours, operating online allows you to be available to your clients 24/7.
They can be sitting on the couch watching tv, or on a train travelling to work, digital allows your clients to complete their purchase whenever, wherever.
2. Greater Reach
Whether it is buying biltong in Africa, spices in the Middle East, or electronics in China, being online allows you to offer your products and services to a global audience.
By being online, you will also become more discoverable to people (regardless of their location) who would never have known about your product in the first place.
3. Lower Costs
Hiring or buying a physical storefront, purchasing inventory, and paying for sales staff can put quite a dent in your monthly earnings. With e-commerce, most functions are automated with software and often only need an annual subscription and the odd update.
Online business owners also save by using drop shipping to procure inventory without a large, upfront investment. Social media, organic search, and Google Ads are all cost-effective ways to market your business without a hefty price tag.
Long gone are the days where you have to risk the elements (including other people) to stand in line for that long-awaited sale item!
Since COVID, online shopping has in some cases (literally) also become the only way to shop. For this, we should be grateful, as it has forced so many businesses who would never have considered it, into the digital arena.
There is no denying that being able to shop from under the covers on a cold, miserable day has its perks. Just don’t become a slave to it.
Getting up, getting dressed and getting out, is still very much-needed for human survival!
5. Provide More information
The beauty of digital is that we have access to so much information. Information that is not only useful to you as a business owner, but also for your consumers.
For business owners, customer data can provide a lot of information about their needs, wants, and shopping behaviours. With this information, you can optimise the consumer journey and market more accurately and effectively.
To consumers, comparison shopping is one of the top benefits of e-commerce, as they can easily compare products, prices, and brands.
With every passing year, technology is teaching us more effective ways of doing business. E-commerce is certainly one of the more significant enhancements to our lives.
It has saved us time, saved us money and more importantly, opened our eyes to so much more than what we’ve had access to up until now.
Tenacity Works can assist you with all your e-commerce requirements. We will work with you to create a superior product that you will be proud of, and your consumers will love.
Get in touch and let’s get started!