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It’s no longer a matter of if you’re going to sell online, but what kind of store you’ll have and how it will function. It’s not just about these larger companies either; even smaller, local shops are seeing an increase in sales thanks to their website and their ability to offer an appealing customer experience without ever stepping foot into retail space.
Rise Of Dropshipping
eCommerce has created a shift in the traditional business model, primarily because it often does not require upfront capital and can be accessed from anywhere. You can get into eCommerce without spending any money on startup costs – simply use an online store builder like Shopify or Magento and sell their products directly to customers.
One of the most popular models in eCommerce is the dropshipping model; a process where third-party suppliers fulfill orders without having to stock any inventory, which means costs can stay low for business owners. Dropshipping works well for entrepreneurs because they don’t have to order inventory, all it takes is opening an online store and partnering with a wholesaler.
Increase In Online Marketplaces
With the advent of online marketplaces, small businesses can compete on a global scale and reach an audience that they may not have had access to before. Sites like Amazon allow you to sell your products in their marketplace while maintaining control over pricing, inventory management, and more.
The ability to reach an audience on a global scale has allowed more small businesses the opportunity to succeed and develop into successful companies that can grow their business well outside of what they may have been capable of before.
Another aspect to consider if you decide to open an online store on Amazon is that you can always sell your business later on. Begin exploring how to sell Amazon business, even before launching your store, so that you know you have taken all the necessary steps to ensure your business’s success.
Increased Demand For Customer Service
It’s not enough to have a good product – you must also provide excellent customer service and the ability for customers to speak with someone about their order whenever they want.
Increase In Warehouse Space And Decrease In Store-Fronts
The eCommerce industry has evolved a lot over the last decade, and this evolution is often referred to as “e-flux”. It’s not just online shopping that has changed; it’s also how stores do business.
One of the biggest changes in brick-and-mortar retailing is the decreasing number of storefronts. These stores are closing at a faster rate than they’re opening, and many eCommerce businesses have increased warehouse space to make up for it.
More Competitive Environment
eCommerce has brought about a new, more competitive environment. With eCommerce-only retailers emerging and existing brick-and-mortar businesses adding their own online stores to stay afloat, there are now even fewer opportunities for consumers to choose from.
This has led to an economy less focused on the individual customer but rather on what will best serve all of the customers in the market. Businesses now have to focus on other revenue-producing activities, such as customer service and retail.
Customer Reviews Have Become More Important Than Ever Before
Social proof is a term that describes how we often look to others’ behavior for cues on what is appropriate in a given situation. In the world of eCommerce, customer reviews have become more important than ever before as social proof can help shoppers find products they like and trust.
One study by BrightLocal found that 93% of consumers say they would read reviews of local businesses to determine the quality. Most people tend to believe the best reviews, regardless of how many there are.
Reviews can also have secondary benefits for retailers by boosting their SEO potential with Google’s “rich snippet” data containing ratings from sites like Yelp or Zagat appearing in search engine results.
Increased Demand For Delivery Services
The increased demand for eCommerce has led to an increase in delivery services. With same-day delivery being the number one driver for 54% of US consumers under age 25 and 83% of US consumers expecting regular communication, demand for efficient logistics is at an all-time high.
The need for increased delivery services is especially prevalent now that people are ordering items online and have them delivered rather than driving across town themselves.
Greater Focus On Social Media Marketing
Many businesses are focusing on social media marketing to drive traffic. Presence on these sites is not enough; you should have engaging, creative content that will attract followers and keep them coming back for more.
A social media presence that leverages a variety of networks and posts should be part of any successful business strategy today. Social media allows businesses to interact with customers more directly and collaborate with other brands for marketing purposes. They can even create contests or giveaways with prizes for fans.
eCommerce has changed the way business is done by enabling consumers to shop from anywhere with an internet connection. People are more likely to buy online than in person, which will continue to increase as time goes on.
With online retailers like Amazon dominating the market, retailers of all sizes need to be responsive to their customers’ needs because they’re not going anywhere anytime soon.