The Shocking Data You Never Want To Miss
How Big Is The Ecommerce Market
In 2014, the worldwide ecommerce sales amounted to 1.336 trillion and the projection for the year 2021 is targeted to grow to 4.88 trillion US dollars. I did a simple calculation, and this is like 265% growth in 7 years! (source: Statista 2018)
I’m not sure how this data affects you, but this gives me a boost in confident that I am in the right industry.
And now if we look deeper, the top contributors to this huge ecommerce market is actually our favorite brands – Amazon, Apple and Walmart.
Just the 3 players have contributed a total of 97,888 million US$ revenue in 2017, and guess what, they have only achieve a market share of 9%!
What does that means?
This means that the market is still slightly fragmented with opportunity for everyone who wants.
So now are you motivated to be part of this growing market? No worries if you still wonder, because I’m going to share with you more detail and precise data to ensure you are on the right path.
What Makes This Market Soar Like An Eagle?
Let me ask you, does your family members shop online? Does your colleague shop online? Does your friend shop online? Particularly most people now make purchases online.
Online shopping is one of the most popular online activities worldwide with improved online infrastructure and the ability to buy.
Anyone, literally anyone with internet can go online, search for an item, click to order, input information, make payment with credit card and thats it! If you’re a frequent buyer, you probably can purchase an item within like what… 5 mins?
As I mentioned before, people shop online because of 3 main reasons:
Convenience – item can be deliver to doorstep without the needs to walk/drive to the store
Fast – probably wait within 2 to 5 days to get the item
Cheap – able to compare the item price with various sellers and get it at lower price during deals and promotion
And when I was on the train or metro, I noticed out of 10 people who are using their mobile, 3 o are looking at products
I have the habit of observation because I want to understand some of the human behaviors. I notice out of 1
The bulk of retail ecommerce will come from China, where sales are expected to reach $899.09 billion this year, representing almost half (47.0%) of all such sales worldwide. While there is plenty of opportunity for growth, parts of Asia-Pacific are still faced with challenges. In Southeast Asia in particular, ecommerce still represents only a fraction of total retail sales. An underdeveloped digital payments infrastructure and a weak logistics framework have made these markets unprepared to handle high volumes of ecommerce orders and have kept ecommerce at a nascent stage.
but the usage varies by region – in 2016, an estimated 19 percent of all retail sales in China occurred via internet but in Japan the share was only 6.7 percent. Desktop PCs are still the most popular device for placing online shopping orders but mobile devices, especially smartphones, are catching up.
Worldwide, e-commerce growth is primarily being driven by consumers using their mobile devices, phones and tablets, to acquire goods and services. According to eMarketer estimates, retail e-commerce sales reached $2.3 trillion in 2017, a 23.2 percent increase over the previous year. The mobile share of this stood at 58.9 percent, or $1.4 trillion. In 2021, mobile e-commerce could rake in some $3.5 trillion and then make up almost three quarters (72.9 percent) of e-commerce sales.
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!