Online shopping is growing fast everywhere on the Globe and that means e-commerce is quickly becoming a necessity for retailers and even many B2B companies. The good news is it’s never been easier for smaller companies to get into e-commerce and reap the many benefits.
Apart from young people who willingly buy online, seniors are also becoming increasingly interested in the offers prepared by various e-shops. There are many reasons to invest in e-commerce. Such a rapid surge in new customers led to the appearance of new brands, the development of technologies, and an increase in companies’ annual growth rate.
E-commerce is a constantly changing industry with rapidly evolving technologies, trends, and a competitive environment. No wonder the recent pandemic was a serious game-changer for this niche, bringing both positive and negative effects for all businesses in this sector. During the lockdown, consumers completely changed their way of purchasing goods, forcing companies to invest in e-commerce.
E-commerce is an ever-changing industry every year, several new trends come up that can help your business grow and compete with your competitors. And 2022 is going to be no different. As the pandemic slows down, we are likely to see the penetration of E-commerce also slow down compared to 2020. However, many E-commerce businesses will be moving into 2022 with the goal of realizing high, fast growth.
Investing in eCommerce might seem like a departure from more traditional investments, like technology startups. But the eCommerce industry is booming. Eventually, small-to-midsize companies move to become publicly traded or are acquired by larger companies, making the investment worthwhile in the long run.
So, what are the key reasons why it is of benefit to invest in your E-commerce channel or to play on an E-commerce platform?
More purchasers
If you’re considering investing in E-commerce, you’re headed in the right direction. The first and the most crucial aspect is to invest in the global trend of buying online. Online shopping has become a normal routine in many people’s lives in this digital-centric world. And this is an ongoing trend for the digital world we live in. According to Statista, E-commerce will make up 22% of global retail sales by 2023. Compare this percentage with 2019’s global E-commerce retail sales at 14.1%. And over 75% of people are shopping at least once a month online. As you create an E-commerce strategy, take these statistics about people who are making purchases online.
More credibility
Modern customers aren’t only looking for the fulfillment of their consumer needs. Today, shoppers also tend to explore brand stories and establish bonds with companies.
Having a beautifully designed E-commerce website helps your business be more credible and raises the confidence of the audience. People can look directly at the products or services that you offer, as well as specific details about them. It is absolutely necessary to have a presence on the Internet. Otherwise, customers may get suspicious and turn to another more established brand online.
The direct-to-consumer approach is here to change everything. If you are a manufacturer or have some kind of product, make the website your main distribution channel. In the digital space, your website is the face of your business. It allows you to tell stories, explain the product’s value, and increase brand visibility. An E-commerce centered website can boost your brand image as well, especially if it is fashioned and trendy.
Reach wider
E-commerce allows your company to punch above its weight against much larger competitors and expand your geographic reach beyond your community to your region, the whole country, or foreign markets.
Another reason you should invest in an online store is that this way you can reach a significantly wider range of potential customers. Running the shop in a specific city means that you are known mainly to the local recipients. You can expand this group by selling online.
The reach of your audience can raise exponentially especially by implementing digital marketing campaigns. You can track where they come from, where they go on your site and what they buy. You can then use the data to optimize your online store. What are your most popular products? Where do people leave the site?
Thanks to a website, you can reach international buyers. Your products may appeal to users from all over the world which significantly increases their popularity.
More awareness
If you sell locally you are known in a particular area. With e-commerce, your brand may become recognizable internationally. You can achieve such an effect through marketing activities such as Google Ads, Facebook Ads, SEO campaigns, email marketing, and active social media profiles.
To run your E-commerce campaign using social platforms create better awareness of your products and services to customers. Today, social media platforms like Instagram, Facebook, and TikTok have become discovery engines for brands.
Facebook claims that 63% of online shoppers who use Facebook, use it for shopping activities. Social commerce helps brands serve customers who don’t waste too much time browsing product pages and reading copy. The global trend in the development of E-commerce opportunities proves that social commerce is going to be one of the most promising in the near future.
B2B possibilities
By data provided by Statista, the global B2B E-commerce market was valued at $12.2 trillion, 6 times more than the B2C market. Generally, when people consider investing in E-commerce, they think of B2C businesses.
However, B2B E-commerce marketplaces were growing since 2019 up now. The B2B sector is evolving rapidly due to changes in the audience.
In 2020, close to half of B2B buyers are millennials — nearly double the amount from 2012. As the “typical” B2B buyer changes, a business’ sales process should too.
Where a Gen X buyer may prefer the handheld experience that a sales rep can provide, millennials expect that same personalized experience through streamlined, digital channels.
For sure, B2B businesses shouldn’t hesitate to invest in E-commerce.
Retail possibilities
It is forecasted that retail E-commerce will proceed to grow. The current coronavirus pandemic also is changing the retail E-commerce landscape, since it shut down many physical storefronts temporarily. Online retailers or those who invested in E-commerce retail significantly increased their revenues.
The world statistics show that between Q2 2018 and Q2 of 2019, 59% of shoppers in the US purchase clothing online rather than from conventional stores. And this also spreads to FMCG goods globally. Obviously, retail businesses that have an online presence are able to leverage multiple points of sales, instead of just one at their physical stores.
Omnichannel retail implies distributing your goods over different channels, such as social media, marketplaces, brick-and-mortar stores, and other options. Placing products on all popular platforms certainly impacts their visibility across the Internet. According to data gathered by Google, omnichannel strategies drive 80% more incremental store visits.
24/7 availability
Investing in an online store or third-party marketplace allows you to sell your products or services to customers 24/7. There are regular store hours, so you can truly stay open all the time, which can in turn boost your sales. When you have an online storefront, there are no time or geographic limits. People can spend as much time as they need to decide what to buy, as well as come back to your website whenever is most convenient.
Your site will provide customers with the convenience of 24/7 shopping from anywhere. You can make the experience even better with apps that allow customers to examine your merchandise up close and chat with your staff.
At the same time, you can use your e-commerce capability to improve your in-store experience by arming your employees with smartphones or tablets. They can show shoppers products online as they accompany them through your store and even take orders right on the spot.
Conclusion
If you’re considering investing in E-commerce, you’re headed in the right direction. E-commerce is an industry that is currently growing exponentially, especially due to more people making purchases online. Many businesses are choosing to invest in E-commerce since there are more people buying online. If you’re selling a product online, you’ll want to meet people where they are by either bettering your current E-commerce strategy or starting a new one.
If you’re looking to grow your business this year, consider investing in E-commerce. More people are making purchases online than ever before. B2B and retail E-commerce are both also rapidly expanding. Investing in E-commerce will help your business appear more credible and make more sales since your online store can be open 24/7. Additionally, millennials prefer online shopping, making it easy for you to target younger audiences if you focus on E-commerce. Lastly, there are more online tools to help you easily sell online. All in all, if you choose to invest in E-commerce, your business will be able to have a more successful future.