Ecommerce is still in its infancy stage, but the kind of changes it has brought about are stunning. Sales via ecommerce has grown about 22% since 2015. This is an interesting statistic, and one that we will go into in depth. Let’s talk about ecommerce for a bit: ecommerce has already hit $2.3 trillion in sales, as well as making up 10% of retail sales.
People obviously still like using online shopping a lot, otherwise there would nothing to account for Jeff Bezos being the richest man in the world. Why is online shopping so compelling? Here are a couple of reasons why.
Things are vastly cheaper online than they are in physical stores. While you might have to buy something at full price from a physical store, the online option allows you to buy it at 30% cheaper. This is a strategic decision made by online marketers because it has been proven that people tend to buy more of something if it is on sale. This is how Steam makes most of its money: through seasonal and weekly discounts on games. What ends up happening is that users get more for their money, while online stores also get massive gains.
When going to a local store, customers do not have a whole lot of range or options, at least not in comparison to online stores. There may be options, but there is no guarantee the product you want will be in any given store at any given time. Online shopping makes that problem negligible. If you want to find a product, all you will need to do is type it into the search bar.
- Establishing a business
Opening an online store is vastly cheaper than opening a physical store. With online stores, your ads can reach people faster through ecommerce SEO services, and you are guaranteed more sales than if you simply had a physical store. Even advertising is difficult with physical stores. Even while using physical stores, there is no guarantee that the customer will live close to wherever it is. Delivery costs and keeping an inventory is more cost effective than renting out a commercial space and waiting for customers to show up.
- Marketing approaches
Marketing is vastly different online and in the real world. The customer base can be limited to the vicinity, which may not work well unless you spend a lot of money trying to rent a commercial space in a busy locality. Marketing can be expensive even after that because customers need proper incentive to visit your store and not their regular ones. Online marketing strategies are not only cheap, they show results far quicker than they would with physical stores.
Ultimately, it is up to the business. Whether it is a small brand or a large corporation, whatever works for yourcompany should be dependent on you. People still go to physical stores, but there has been a significant rise in online stores for its efficiency and delivery speeds.
Author Bio – Mansi Rana
With over 13 years experience as a leader in digital marketing, Mansi Rana is Managing Director of EZ Rankings. Passionate about all things data; providing actionable business intelligence in digital, future tech; and venture bubbles categories for everyone, everywhere.