05 Oct What is an eCommerce website and why is it advantageous to have one?
What is eCommerce?
An eCommerce is a website that allows for commercial transactions to take place over the internet. It is a site that is managed by the seller as a branded website, such as Home Depot, a marketplace website, such as Amazon that represents many sellers and a social media website, such as Facebook.
How significant is eCommerce growth today? eCommerce site sales are growing at a faster rate than physical retail or wholesale outlets that have invested in bricks and mortars. The magnitude is significant, 12% growth for eCommerce sites and 2% growth for bricks and mortar outlets, based on 2017 outlooks from the National Retail Federation.
What are the cost advantages of eCommerce?
The growth in eCommerce transactions is compelling enough a reason to adopt this go-to-market strategy. However, the cost factor is another interesting reason along with the speed to set it up. Setting up a bricks and mortar facility is time consuming, location risky and costly. With an eCommerce site the costs are more easily managed along with the risks. You can start small without the physical appearance of looking small. As your business grows you can reinvest more effectively through campaigns such as AdWords to target specific customers and products. This helps to increase your market penetration on a global scale. Finally, the need to invest in additional physical sites to reach other clients in other geographic areas is not necessary.
What about your ability to get market recognition?
Having an eCommerce business allows you to gain better brand recognition. Most consumers today conduct online product comparisons before making a purchase. Your eCommerce site allows you to better inform your potential clients and showcase your products or services. This makes it important that your site is properly set up and kept up to date with appropriate content that is relevant to increase search engine optimization (SEO).
Why is an eCommerce site more effective?
An eCommerce site will improve the productivity of your organization. It allows for transactions to take place 24 hours a day, 7 days a week, without requiring your active involvement at odd times. It makes you more efficient and provides a better level of customer service. You also have the advantage of better inventory control.
Adapt or perish?
In summary the key advantages are lower costs, better market coverage, easier branding and improved customer service. Over 40% of consumers today make their purchases online, according to comScore. Your business website will greatly benefit by an eCommerce portion, otherwise you may well be left behind by your competitors.