What is Ecommerce (and how to bet on it for the future)
Worldwide retail closures have turned marketing plans upside down for thousands of businesses. While some are starting to transition to opening fully, others are slowly making the transition to eCommerce.
There is a lot of potential in the online marketplace. Transitioning your business online may be daunting, but it’s actually a great idea.
But before you dive headfirst into an eCommerce business, it is important to look deeper into what eCommerce is. Let’s tackle some essential pieces that come with going digital.
What is ecommerce?
The term eCommerce refers to the transactions conducted via the internet. Every time you buy or sell products and services on the internet, you are engaging in eCommerce. While eCommerce is often used to refer to the sale of physical products online, it can also be used to describe any kind of commercial transaction that is facilitated through the internet. Essentially, if your business has an online element where business can be conducted (website, email, etc) you are already engaging in eCommerce.
Why you should transition to ecommerce
From the way we communicate to the way we get our news – everything has transitioned online. And shopping is no exception. Online shopping has become a common practice among millions of people across the globe. For many people, the thought of living without eCommerce seems unfathomable. If you are considering starting an eCommerce business, now is the best time to do so. Just last year, mobile traffic and shopping on mobile devices officially took over desktop.
If you’re still on the fence about making the transition online, here are 6 reasons why you need to get on board with eCommerce.
Make sales 24/7
Ecommerce websites are accessible 24/7. That means, your store is open at all times and customers can purchase your products any time of the day. This gives you the ability to earn as you sleep.
When you are no longer restricted by location and time of day, you have the potential to create greater income.
Expand your reach
A business has to spread its word far and near in order to reach its full potential. If you run a brick-and-mortar store, you are limited by the geographical area that you serve. Why limit yourself by only reaching those who happen to walk by your single street location? Instead, expand your offerings to a global audience.
With an eCommerce website, the world is your playground. Millions of people across the world can view your website at any time.
Lower operating costs
One of the biggest benefits of starting an eCommerce business is the low startup cost. With a brick-and-mortar store, you need to spend thousands of dollars on renovations and rental costs. On top of that, you have money going out for inventory, equipment, and pay staff to work at each location.
While eCommerce operations aren’t free, they require fewer resources than traditional retail stores. There is no need for a brick-and-mortar store, no need for a salesperson, or a cashier to ring up a sale. In addition, you no longer need to pay for rent, electricity, heating/cooling, and maintenance.
Boost your sales
Running paid ad campaigns, creating social media accounts that are shoppable, and knowing your niche are great ways to boost sales online. Doing things like offering discounts and adding a timer to your checkout process can help increase your sales.
Analyze your market
The surge of eCommerce has led to the development of software that allows you to gather important data. This data will not only help you understand individual customers but gives you better insight into your market as a whole.
Thanks to web analytics and things like a Facebook™ Pixel, you can track where visitors came from, their behavior on your website, as well the items they look at. Use this information to improve future campaigns and grow your business.
Retarget to customers
Abandoned carts are a prevalent problem. The good news is that you can retarget to customers who added items to their carts but didn’t buy.
If you run Facebook ads, you can also use Pixel to retarget to customers who already visited your site, added to cart but didn’t check out, initiated checkout but didn’t buy. You can also collect email addresses with an effective pop-up or lead magnet and continue marketing to your customers after they made a purchase. And to that end, having an organic content strategy on your social channels is always a good idea. All things that you simply cannot do in your physical store.
The growth of eCommerce is nothing short of impressive, and by next year, worldwide retail eCommerce sales will reach $4.9 trillion (Source: https://letstalkaboutmoney.com/ecommerce-statistics/) Its time to stop wondering if an online shop is for your business and start thinking about creative ways to get there.
Published October 7, 2020 by Deonnah Carolus