A complete e-commerce guide of the advantages of launching your business online today.
Without a doubt, setting up and promoting your own business on the internet can be one of the most rewarding experiences. The opportunity of connecting with millions of potentially new virtual customers is not only exciting, but has been proven to help businesses grow successfully and earn six and seven figure rewards.
So what is e-commerce exactly ?
By definition, e-commerce is elaborated as " commercial transactions conducted electronically on the internet ". It is the buying and selling of goods and services electronically online and can be broken down into two parts:
- At first glance we need to consider how the market is populated with goods and services. The population of these goods and services is done by the sellers bringing their goods and services into the online marketplace. These goods are then either sold directly by the sellers or sold through third-parties such as affiliates or other e-commerce platforms such as Amazon and Shopify.
- On the other side, we have the customer/consumer, the individual who is actively seeking out these goods and services online. Search engines like Google, pick up on these key searches word for word and identify all popular results or more technically, the most well indexed websites related to your search and displays results accordingly.
" Global e-commerce market was valued at USD 14.30 trillion in 2021 and reach USD 58.74 trillion by 2028, at a CAGR of 26.55% during the forecast period (2022-2028)."
Source: SkyQuest Technology Consulting Pvt. October 31, 2022 11:32 ET
The sheer volume of the Global e-commerce market holds big potential, whereby funds can be traded electronically and exchanged for goods and services 24/7 over the world wide web. This is the magic that makes e-commerce one of the best tools to grow your business beyond your physical location to nationally or even internationally. The choice is yours to take.
Here are some other advantages in detail.
1. Expedited buying process
Think about it for a minute. Buying something online is as simple as a google search to identify the most suitable product or service. This automatically eliminates the process of leaving the comfort of your own home, to physically visit a brick and mortar store and walk through the aisles to browse and identify what it is that you want or need to purchase.
In some cases, some brick and mortar stores may carry more stock and variants than others, which means that you also run the possibility of perhaps not finding the exact product or service that you wish to obtain.
On the other hand, a well organized e-commerce website has the ability to filter products for the customer, giving you the widest range of all products and variants at the tip of your finger. Similarly, you will not have to carry anything to a physical check out or carry anything into the trunk of your car. A well established e-commerce store can easily accommodate the check out process via a mode of different payment methods. Alternatively your goods will arrive at your doorstep and you get to keep track of your order as it gets delivered.
2. Easy Store & Product Listing Creation
One of the greatest advantages for both sellers and buyers is that product listings are indexed once uploaded and specific, whether that would be a product name or code SKU, EAN, UPC, ISBN or ASIN. This makes it easy to input all the product information including but not limited to things like images, product categories, pricing, offers/ discounts, shipping costs and date of delivery. All this information combined in a few simple steps can help the customer/buyer take an informed decision.
Here are some tips on creating product listings::
- Use of high quality images and maintain standard image dimensions in accordance to your theme. Low resolution images can distract or even shy away potential customers.
- A Picture is worth a thousand words! Make sure you have enough images or even video is certain cases. A 360 Degree view of the product is important.
- When uploading products which have variants, let's say the product is the same but the colour is different, then make sure that those variants are linked with the right imagery.
Another great contrast between online and offline stores is that offline stores require direct interaction with the customer. So the same product information is repeated again and again to every customer, whereas on the other hand, an online store only needs to upload the information once, and reap the rewards 24/7, every time a customer searches for that product online. After all, statistics show that one third of consumers use the mobile devices to shop for items online and it is on target to increase significantly in the coming years!
3. Significant Reduction in Expenses
Let's say that you are established in a physical store. Every month you would have to think about things including but not limited to:
- Rent (if you do not own the physical location)
- Utility Bills
- Store Design
- Maintenance and Repairs
- Showroom space
- Workforce
Now let's take things online. With an e-commerce store, the seller can significantly reduce the amount that is spent on store up-keep. An e-commerce solution can be greatly affordable with prices as as little as €21.00/month.
Store design then can be something that is done in a matter of hours if not minutes rather than days or weeks. Best of all showroom space can be as small or as large as you wish.
An e-commerce solution in such a case is especially a great opportunity for individuals who are just getting started or are on a small scale and do not have the required start up capital. On the other hand it is also an equally great opportunity for established businesses to expand their horizons.
4. Affordable Marketing
In this day and age you don't have to spent much money promoting your items. e-commerce marketplaces are visual channels. - Ring a bell?
Today you can easily push your product listing through many social media platforms such as facebook, instagram, snapchat, tiktok and the list goes on. This gives you the opportunity to really show-off your product.
You can take advantage of many free online advertising tools to create high resolution videos and infographics. By adding life to plain boring text, you can easily make your products look more attractive.
5. Flexibility
In a virtual world that never sleeps, you can offer your products and services 24-hours a day seven days a week. Your store will never get tired of repeat purchases. These are not only convenience points for the seller who can include things like free shipping (usually on a minimum purchase value), other deals and discounts, subscriptions and the like.
6. Product & Price Comparisons
Online platforms provide an unparalleled opportunity for customers to compare products and prices easily. They can browse through numerous options, read reviews, compare features, and prices at a click of a button. This transparency helps customers make informed decisions and pushes sellers to be more competitive with their offerings.
7. Playing in the Global Field - No Limitations
The digital marketplace removes geographical barriers, allowing businesses to reach a global audience. This opens up a world of opportunity for growth and expansion. Businesses can tap into new markets, understand different consumer behaviors, and adjust their offerings accordingly to cater to a diverse customer base.
8. Improved Response Time to your Market Niche & Customers
With digital tools and analytics, businesses can quickly gather and react to customer feedback and market trends. This agility allows for rapid iteration and customization of products and services to meet the changing needs and preferences of a specific niche. Real-time interactions also enhance customer service, building loyalty and trust.
9. Multiple Payment Modes
Online businesses can offer various payment methods, from credit cards and bank transfers to digital wallets and cryptocurrencies. This flexibility makes it easier for customers to complete purchases according to their preferences, enhancing the overall shopping experience. It also opens up the market to customers who might not have access to traditional banking services.