Benefits Of Ecommerce You May Not Know
5 Reasons Why Start An Ecommerce Business
“How can starting an ecommerce business helps me or my business?“
This question pop up 10 years back when I first explore about ecommerce… If you’re reading this, you probably has the similar question in mind.
The understanding of the benefits that an ecommerce business can bring to my life kept me fueled for the past 10 years.
Now let me guess…
Maybe you have a product idea that has been dwelling inside you..
Or you probably realise that your day to day corporate job doesn’t give you that much security and earning any more.
Or maybe you are a traditional business like I used to be and have found this solution to bring your business growth to the next level.
Whatever reason you have, you’ve made the decision to find out or even learn more about online business.
This is definitely an encouraging move because what you going to discover is something that can potentially change your life, or even your family’s life. The unlimited opportunity and lucrative earning from ecommerce business is what makes the industry bloom within these years.
Why It Make Sense to Start eCommerce Business?
I know, the additional income is what you need (actually is everyone needs!). But deep down inside you, it’s the satisfaction and control you can gain from doing your own business – creating the time & money freedom you always wanted.
Why I said that?
The survey by McKinsey Global Institute conclude a huge 49% increase of small business across USA over the last 35 years, and a direct increase of satisfaction level with their life after starting their self-own business.
And the satisfaction comprises 2 aspect – Freedom & Passion:
Freedom – the golden promise of entrepreneurship, which is also the main driver to start a business. Freedom is to have control over your life, having the power to direct it in the way you want, rather than working for the whims of others.
And I always said
Passion – the golden source of entrepreneurship, the fuel to keep you burning. In starting a business, you get to decide what your business does.
Most people would love to work on things that care deeply about. True or true?
The truth is, not everything you enjoy could make a business that earn you the cash freedom, but the key here is you can be passionate with thing that other people are willing to spend money on.
Chris (author of $100 Startup) mentioned about follow-your-passion model, and the key is to have the thing that you care about and what others are willing to spend money on… Bingo!
And now with internet being the fertile soil for business startup and growth, you can now leverage it to sell your products, advertise to the right audience and reach a wider audience than ever before, which is what I am sharing with you in the following:
Top 5 Major benefits of eCommerce
I always believe that selling online is the best thing you can do now with the potential in earning in sleep. The benefits I’ll be sharing with you will gives you the reasons to get started in this journey:
Benefit #1 – No More Geographical Limitations
Do you believe you can launch your online store on the same day you decide which product you wish to sell?
I am not kidding! You don’t need to got through the process of visiting your physical store location, checking out the rental space and driving around the neighbourhood to see if there’s enough potential customer who will visit your store later on.
First and foremost, eCommerce business operate on the internet platform where you can get far more customer that you could by running an actual store. You store now stays up and run 24/7, allowing customer from any part of the world visit your store and make the purchase with you with just the click of a mouse.
So no more, a storefront operating at New York, another store operating at Toronto and another opening at Thailand. An online store where your customer can buy your product at any time of the day, even when you are in your sleep!
Benefit #2 – Much Lower Cost
In running a retail store, there are several cost involved. I am not going into detail on this but to just highlight the top three cost contributor before I do the comparison:
- Setup Cost: Rental, storefront renovation, equipment and accessories are some of the costs needed upon setting up a physical store.
- Inventory Cost: It cost time and money to mange inventory, you need to bring in stock, allocate a warehouse to store them and hire a staff to helps you manage the inventory, cost again…
- Staffing Cost: The whole business process involve several touchpoint where customer interact with your employee, like cashier, customer service personnel, and delivery man etc. You will need to hire them and these are hardcore cost that cannot be avoided.
One of the most tangible positives of ecommerce is the lowered cost. A part of these lowered costs could be passed on to customers in the form of discounted prices. Here are some the costs that are reduced:
- Setup Cost: You will only need to pay the fee for a domain, hosting platform, ecommerce platform and probably a website theme (estimated below 200 bucks) – you are all ready to sell.
- Inventory Cost: The inventory management cost is greatly reduce due to the features provided on the ecommerce platform. You can automate the process with outsource company with a small sum of fee.
- Staffing Cost: You wouldn’t need a staff to be station in the store to serve your customer and you wouldn’t need a staff to manage your cashier. The online features has all settled for you (there’re feature that is free!)
With an ecommerce business, you are saved all of this costing and thus reduce your expenses considerably.
Benefit #3 – It’s Easy To Get Started
Did you know it wasn’t simple to setup an online store 10 years back? At that time, we were literally struggling with programming codes… But now everything has improved.
Not only have the tools for ecommerce gotten a lot better over time, the selling platforms to marketing automation and SEO tools, anyone can get the store up running in the shortest time!
Out of all the setup, you probably can’t imagine that the most challenging aspect is actually getting the product up because you need the product photo to be uploaded & complete it with the description (this part spends most of the time!).
Maybe you don’t find this challenging, and I guess you can setup your online store faster than you can even imagine!
Benefit #4 – 80% of Online Users Made Purchased Online
Over the last decade, ecommerce sales have grown tremendously each year and are expected to reach 1.92 trillion U.S. dollars by 2018 by Statista.
Even during the dark days of 2009 when retail sales shrank 2%, ecommerce business grew sales by 1.4%, capitalizing on Web-savvy consumers to continue to gain market share.
So it shows that people (not only the young people) clearly trust online purchase more than they did in the past. The 80% purchased is only going to grow, giving you more opportunity to soar in this industry.
With such demand, more tech-ready application and software will be designed to make the whole ecommerce business process easier to implement, faster to setup and cheaper in cost. So does that sound favorable to you?
Benefit #5 – You Can Sell More To Customers In Long Run
To be successful in a business, we don’t look at one-time sale, we want customer to return to our store to make purchases again, and again, and again!
For every visitor, fan, follower, and customers to our website, their basic information can be capture (of cos with their consent). The information is then use to keep them updated with our products, aware of our promotion and even be engaged with our deals through Email Marketing. These is somehow equivalent to the deals, bargains, coupons, and group buying for retail store, and online shopping makes it much more convenient. They can now access to any great deals with just clicks.
And more to that, there are marketing function called Retargeting where I can show my store advertisement to the people who visited my store and has not made any purchase. From there onward, they are frequently shown with my ads, reminding them to buy. Doesn’t that sound awesome?
I would say there are unlimited opportunities to explore and it’s really really fun when you can control how your advertisement works and show to. You never have to spure your advertising fee on brochure or poster where you can’t even measure the effectiveness.
Ready To Start Your Business?
The beauty of ecommerce business allow you to seize on the freedom and gain control of your own destiny in a way that conventional jobs do not. And in making your own decisions, you can make your own reasons.
What are your reasons for starting an ecommcerce business? Do you have additions of your own? Please let me know in the comments below!
Have more questions? Reach out and ask!
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