The eCommerce industry is booming with a whooping sales surge of 27.6% during 2020. And the industry is expected to grow to 7.4 trillion by 2025. The number of eCommerce sites has increased drastically from 2019 to 2022, from 9.2 million to more than 26 million.
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eCommerce Industry Boom
The eCommerce industry is booming. But, the initial boom was in the year 1995. After that, the industry kept growing and reached $150 billion by 1999. After that, the growth pace slowed till 2004.
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But in 2005, the eCommerce industry boomed again with the introduction of Amazon Prime to American users. The industry kept growing and generated a revenue of more than $29 trillion in 2017.
And during the Covid 19 pandemic, the industry boomed and attended a growth of 43% during 2020. Moreover, the expected growth rate after 2020 is 1.3% per year, only for retail eCommerce.
10 Ways How eCommerce is Changing the Ways of the Business
Now, let’s get back to the topic of how eCommerce is changing the ways of the business. Without further ado, let us check out the factors that play a crucial role in transforming the industry.
1. Easier to Setup
E-commerce transformed the way of doing business and allowed anyone to start their online business and sell products around the globe. Further, with an eCommerce site, you can sell anywhere at any time.
2. Market Monopoly
Starting an eCommerce business is easy, but the competition is very tough. Large brands have monopolized the market with their unique marketing techniques making it difficult for new firms to compete. Moreover, to contest with them, you need to learn potent skills such as digital marketing to stand firm in the market.
Thus, you can enhance your brand presence and improve your website ranking. That will eventually help you appeal to new customers and offer them benefits and offers.
3. 24/7 Operation
The restricted nature of business, time restrictions, and many other limitations limit the scope of the physical market in many ways. The offline or physical market has few hours and specific opening and closing timings, but the eCommerce store has a different story.
An eCommerce store can operate all the time. So chances of sales increase as customers can order products at any time of the day or night. Ecommerce removes the restraints and need for a physical market resulting in increased sales and profit.
Moreover, users and customers can visit the store and purchase products they like from there. They can spend as much as they want and have the freedom to choose and make intelligent buying decisions.
4. Figuring Out the Best Business Practice
By looking at other organizations on the eCommerce platform, you can skillfully figure out the best possible practice to apply to your business. Also, by this method, you can reduce the cost of the trial and error method and expenses as you have a clear picture of which road to choose.
Advancement in eCommerce has led to new ways for startup business owners specializing in a particular area and earning lower profits can now work with a broader range of internet corporations and earn more significant returns.
This puts a smile on small business owners’ faces. They can gain access to the platform and use these giant corporations to their advantage while making a substantial profit.
6. Personalized Experience
Due to technological advancements, online businesses can provide a personalized shopping experience to customers anyplace anytime. With an enhanced personalized experience, users can buy the desired products. Additionally, many eCommerce mobile apps and websites implement AR (Augmented Reality) on the platforms that help them read user behavior and offer more personalized searches.
Personalized experience helps see what works and what doesn’t. And give freedom to users to make clever buying decisions.
7. Global Reach
One of the drawbacks of the offline market is its reach. With it, you can reach only a particular geographical area. But with eCommerce, you can acquire an extensive customer base. The online marketplace makes it seem like a stroll in the park where you not only sell your product locally but globally.
This method help startups and small businesses attain substantial growth in a short span of time.
8. One Man Show
On an eCommerce platform, one can represent an entire firm and handle it individually or can represent a group of numerous individuals. eCommerce helps small and medium business owners to compete with large enterprise owners by offering them the same visibility and conversions.
This can be advantageous as eCommerce and mobile commerce are presaged to grow exponentially in the future for a more extended period.
9. Unmatched Reach
In conventional business, your audience outreach is limited to a specific geographical area ranging from a town to a city or an entire country. But with an eCommerce store, you can break free and sell beyond the boundaries to reach out to customers beyond your physical borders.
10. Low Product Prices
Ecommerce has transformed the business globally by being the most competitive, which affects the demand and supply as well. And because of the number of available eCommerce sites, the costs of products, as they (eCommerce) offer the same products at different prices.
Ultimately this lets customers enjoy high-quality products at the lowest possible prices.
These are the ten ways, how eCommerce is changing the ways of the business.
How to Rise in the Competitive eCommerce World?
Now, we know how eCommerce is changing the ways of the business, let’s move to forward and know how you can rise in eCommerce world.
There is no doubt that the eCommerce industry is growing exponentially, and day by day is becoming difficult to compete with the rising competition in the eCommerce world. So, how can one compete and rise in this world?
Here are five ways by which one can rise in this competitive eCommerce world.
1. Using eCommerce to your Advantage
Anyone can access eCommerce websites from anywhere and at any time. Also, you don’t have a physical place for a store or storage of products. You just need an eCommerce website from which the customers can place orders.
Comparatively, in terms of cost, the cost of starting an eCommerce site is less than a physical store. And you can easily focus on a much larger area with an online store.
Another benefit of an eCommerce site is the need for maintaining inventory as you don’t need to keep stock in store. You can get the product delivered directly from the manufacturer to the customers without having any physical stock. This lets you have a vaster range of products and product variants on your website and increase the chances of sales.
2. Rational Product Costing
One of the most prominent advantages that eCommerce offers is product pricing. Because it eliminates various costs of mediators, shipping, and transportation, which help reduce the cost of products and allows you to deliver them to customers at reduced rates than the physical market.
Also, your rental cost reduces as you can operate without any physical store or with a small store, which lets you cut the product cost to a great extent.
Moreover, automation technologies help you eliminate the inflated costs of hiring full-time staff and let you use them for marketing and promotion.
3. Opportunity to Increase B2B Presence
The B2B buying experience is also changing as it becomes easier for companies to reach out to one another for collaboration and coopetition to sell their products or offer services to increase their profits.
Moreover, Omnichannel experiences and self-service platforms are becoming increasingly standard in the B2B world, and the catalyst for this change is eCommerce. Also, because of mobile access to the internet, today’s buyers prefer to research by themselves.
4. Buying Pattern Transformation
Changing trends and patterns of B2B is just one aspect of how buying has transformed. Earlier, buyers depend on salespeople to educate them about the product. Also, product reviews, features, social media, etc., play a substantial role in enlightening the customer about products. Now, in B2B businesses also, influencer marketing is on the rise, and brands and companies utilize their social media presence to their advantage.
In this digital era, a consumer does a lot of research about the product before deciding to buy it. The customer reads review content that includes blog posts and videos. Hence, the quality of product pages, ad copy, and email marketing have become more crucial than ever.
Because of the greater convenience of ordering online, consumers have begun asserting their needs more than ever. Companies need to have human representatives, which provide help to the customer before they consider buying their products.
5. Revolutionizing the Logistics
Marketplaces like Amazon, Flipkart, eBay, and Alibaba have pushed the supply chain network to remodel their business practices. Same-day and next-day delivery are essential practices that influence customers’ buying choices to a great extent.
Services like freight forwarding, warehousing, and shipping have become more vital than ever, leading to the rise in the supply chain as a service industry. A great example of this industry is fulfilled by the Amazon program, which eradicated high startup costs for small businesses and enabled them to implement world-class logistics processes.
Due to a broader assortment of products, the volumes flowing into warehouses have increased. Additionally, electronification and automation have increased as logistics firms evolve to keep up with the increasing product flow.
How Can Webkul Help you Compete in the Changing eCommerce Scenario?
Webkul Works with Odoo- one of the leading eCommerce platforms. Also, we are an Odoo Ready partner having more than 200 Odoo Apps, which help ease your eCommerce handling and management.
Also, shipping, sales promotion, payment, and communication help you expand your business and reach more users.
To sum it up, the eCommerce scope is broad and getting vaster with the advancement of technology and automation. And to compete and survive in the eCommerce market, you constantly need to adapt and think of new ways to rise above your competitors. And this is how eCommerce is changing the ways of the business.
My last words will be to choose the best and think creatively, which will help you scale up in the industry.
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