Why start an e-commerce business?

For many years, we followed the traditional retail model, building physical stores and stocking them with products we think our customers might need and want. With e-commerce, it's become possible for people to shop online, from the comfort of their homes, and have their purchases delivered directly to their door. E-commerce, or electronic commerce, is the buying or selling of goods online, involving the transfer of money and information to complete the transaction. Eighty percent of internet users have made an online purchase at least once, and a good number of them are accustomed to online shopping. There are a variety of reasons why people turn to the internet to search for goods: for the convenience of being able to shop without leaving home, or to receive the best deals. In this article, we'll learn more about e-commerce and the benefits it offers you in terms of career and business opportunities.

The meaning of e-commerce

Many more people are expected to turn to online shopping in the coming months and years, making e-commerce a term that is almost synonymous with the word "growth," because as an industry, it does just that. E-commerce websites allow your business or brand to reach more people without geographical limitations, and many of today's consumers search online for international and local businesses. As mentioned above, 80% of internet users use the internet to search for and purchase goods because e-commerce sites offer a convenience that brick-and-mortar alternatives cannot. They save consumers time and make it easier to compare prices. The Internet has become the largest commercial complex in the world, at our fingertips, in the palm of our hands.

E-commerce is changing the way commerce works

There was a time when trade was built around a specific and limited geographic location, a fixed physical location in the world where buyers and sellers had to travel to reach each other. This is the traditional market model, where location was of fundamental importance. Traditional commerce shares these common characteristics:

• Limited working hours and days

• Limited to a specific area

• Requires you to buy or rent a position

• Staff recruitment

• Large inventory

• Large capital investments and overhead costs

Today's entrepreneurs are no longer limited by the terms of the traditional commerce model and are enjoying the benefits of e-commerce. Here's how e-commerce differs from traditional commerce:

• Accessibility and reach worldwide

• No need for sales people and staff

• Open 24/7 all year round

• Low overhead costs and investments

• Easy to maintain and grow

As e-commerce essentially breaks the rules of traditional commerce, the Internet is paving the way for more businesses to emerge, opening numerous windows of opportunity for small businesses. If you want to start your own clothing store today, all you need is a computer with internet access to run an e-commerce site and a few boxes to ship your merchandise in. With dropshipping, an e-commerce business model, you don't even have to worry about shipping or inventory: you'll have a third-party supplier handle the inventory and shipping for you. Companies no longer have to build physical infrastructure for their operations, populate it with employees, have customers travel to make purchases, and face huge maintenance and investment costs.

Are traditional brick-and-mortar stores dying?

E-commerce is constantly growing, and brick-and-mortar stores are evolving toward technology that makes consumers' lives easier. We often view products in physical stores only to check their availability online and search for better deals online. Online selling puts small businesses on a platform that allows sellers to reach global scale, enabling them to meet the needs of buyers globally. It's fantastic that more sellers are going online to open virtual stores. E-commerce offers consumers a myriad of new choices that enhance the shopping experience in ways never before possible.

The advantage of e-commerce

In this section, we'll introduce you to some of the many advantages of starting your own e-commerce business. This list of benefits will help you decide if starting an e-commerce business is right for you.

1) Conduct business 24/7

This is a major advantage of e-commerce that traditional retail doesn't have. The fact is, your e-commerce business never sleeps and never takes a vacation. Your online website is open to serve customers day and night, every single day of the year.

2) Global reach

With the internet increasingly becoming a necessity rather than a luxury, more and more people around the world are using their mobile devices and computers to search for products and compare prices online. Having an online store will help you reach new people every day from around the world. Even if you're a small brand just starting out in the world of e-commerce, you'll have the advantage of a global reach. E-commerce allows you to reach thousands, if not millions, of people in your target market.

3) Low financial cost

One of the most attractive aspects of e-commerce is the low startup cost. Starting and managing an online store isn't as financially demanding as running a physical store. With physical stores, you have to buy or lease a retail space, pay staff, and much more. With e-commerce, entrepreneurs can build a store with little investment.

4) Less invasive shopping experience

Some people don't like shopping in physical stores because they prefer to avoid sales assistants. While these retail assistants are there to enhance the customer shopping experience, many people are unhappy with them and prefer to shop with minimal interaction.

5) Personalized purchases

75% of online shoppers say they prefer shopping with brands that offer them personalized experiences. Every interaction on an e-commerce site generates data, which allows sellers to create a better and more personalized shopping experience for customers. This is a great way to build repeat customers and increase overall sales. You can personalize your customers' shopping experience by offering a personal welcome message on your site, offering special offers on their birthday, or recommending products that would be relevant to them based on their previous activity on your site.

6) Simple retargeting

Another advantage of e-commerce is that it allows you to easily retarget potential buyers online using retargeting ads. Retargeting ads allow you to attract potential consumers who have visited your site but haven't made a purchase. Retargeting is a strategy in which, after the viewer leaves your site, they see ads for your products on other websites, such as Facebook. These ads are used to draw them back to your site to complete a purchase.

7) Easy growth

With traditional retail, growth might mean finding more storage space, building a new physical store, and hiring more sales staff, which leads to higher expenses. In e-commerce, growth doesn't mean many additional costs because you can easily keep up with growing demand, especially if you're dropshipping, where inventory and shipping are handled by your supplier. All you do is continue selling your products while enjoying the growth of your business without worrying about additional costs.

8) E-commerce is for businesses large and small

E-commerce is for anyone, from large corporations to entrepreneurs with no previous business experience. You can build your online store from anywhere in the world and cater to your target demographic and niche from any location. You can easily start and manage a store yourself. E-commerce is a business model that supports small online businesses by providing a platform for new opportunities.

Conclusion

It's crucial for any entrepreneur or aspiring entrepreneur to understand the significance of e-commerce and the impact technology has on consumers. E-commerce has opened up a vast window of opportunity and is readily available and accessible to anyone looking to do business online. There are many great reasons to start an online business. If you're still unsure about starting an e-commerce business, don't hesitate to contact us today. We'll discuss ideas and how the benefits of e-commerce can benefit you.