The Top 5 Reasons for Starting an E-commerce Business
Whether you are an entrepreneur or an investor, ecommerce is a great opportunity to explore, especially today when consumers are constantly changing the way they shop. Most consumers search for products online, compare different brands, and make purchases via online sites, mobile apps, and social sites. With the digital purchasing process, consumers are wanting remarkable experiences with these digital touchpoints. Ecommerce gives every seller a long-term opportunity to win over customers regardless of the geographical location. Here is a list of the top five reasons you should consider starting an e-commerce business.
1. E-Commerce Business Is Easy to Set Up
Unlike an in-store business, you can set up an ecommerce platform with just a few clicks. Online platforms such as Squarespace, Shopify, and BigCommerce offer entrepreneurs the opportunity to create ecommerce sites through pre-made templates. In addition, marketplaces like eBay and Amazon enable marketers to set up online accounts before they start selling. Over the years, ecommerce consultants have made it simple and realistic for businesses to establish reliable and profitable ecommerce sites with minimum effort. Their services include PCI compliances, taking care of the hosting events, site maintenance, and many more.
You do not need to possess technical ecommerce knowledge to have a business website. All you need is a digital agency or in-house resource to make your site attractive and productive.
2. You Can Earn While Sleeping
For a traditional business setting, location is the key determinant of success. On the contrary, ecommerce only requires a proper online set up to be able to sell your products or services globally to different market segments. You will not need to consider several storefronts or visibility to be recognized by many consumers.
When it comes to ecommerce, store timings are open fulltime throughout the year. The websites run all the time and entrepreneurs can receive orders at any time. From a consumer’s point of view, fulltime stores offer convenience.
3. Lower Costs
One of the advantages of ecommerce is that it reduces costs compared to brick-and-mortar stores. This means that adding an online component to your business will be a better option than setting up another physical store. Some of the ways that ecommerce reduces costs include:
- Save on rent— With starting an e-commerce business setup, you will not need an expensive strategic physical location to sell your products; this will reduce the monthly costs spent on the business
- Save on advertising and marketing— Ecommerce presents the opportunity for digital advertising which is cheaper compared to traditional advertising channels. Pay-per-click, social media traffic, and organic search engine traffic are some channels that help cut costs. Businesses can also blend digital and traditional marketing concepts to save a lot of money.
- Save on staff— Ecommerce comes with automated supply chain management processes, including checkouts, payments, billing, and inventory management. The automation of these activities lower the number of employees you would need to run an online business.
4. Most Shoppers Start Their Journey Online
The use of online platforms by shoppers continues to rise, and the majority of customers begin their product searches on online channels. Even if half the consumer population ends up making purchases from in-store marketplaces, they are more likely to search for product information online. Some of the reasons for this rising trend include comparing prices of commodities, comparing brands based on customer reviews, and checking the inventory levels. This means that the only way to ensure your products reach potential customers is by establishing an online presence. When customers find the information they are looking for about a brand, they are more likely to make purchases.
5. It Offers Opportunity for Content Marketing
An advantage of e-commerce is that it allows a business to give more information about its products and services to the public. A well-established website gives you a place to outline your content to potential customers. Key contents include product description, comparison of the products, pricing, and the availability of in-store inventory. This information can help customers to make the right purchasing decision online or in-store.
You may also use your e-commerce site to provide information on how to use your product. Email marketing or web-pages could be dedicated to telling the story of your brand and the ingredients of your products. Videos could help describe the content of your products. This information is crucial as it increases online sales.