E-commerce is essentially the buying and selling of goods or services online. Businesses that use e-commerce can be e-businesses, that only operate on the web, or they can be physical companies that simply use e-commerce as an extended sales channel for their customers’ convenience.
The improvement in technology as well as the increase in the number of people who have access to the internet has led to a steady increase in the number of companies that are using e-commerce to help increase their revenue. A key aspect that has helped e-commerce along is the advancements in payment technology such as ewallets and EFTs which have made transacting online safe and secure and has eliminated the need to have a credit card to shop online. Just about anyone can be an online shopper nowadays.
This is especially great if your company sells products or goods to a niche market. Your handful of potential clients can get a whole lot bigger if you can target this niche online with 7 continents and around 196 different countries, you are bound to reach your desired demographic.
Hand in hand with this is the e commerce fact that being able to deliver products to people around the globe is not only great for business, it is also very convenient for both you and the client. They can order something from your ecommerce store that is not available in their country or even if they just order groceries from the local supermarket, they don’t have to leave the comfort of their houses to do so.
For most businesses, competing on price is ultimately a losing proposition. Instead, knowledge, selection and turnaround are the hallmarks of the profitable and well-positioned company. For wholesale/distributors, their customers demand a comprehensive, reliable inventory that they can reach whenever it is convenient for them. That means eCommerce.
It’s a realization many have already come to accept. In a survey of wholesale/distribution companies, "improving e-commerce capabilities" beat out the expansion or addition of any other sales channel as a strategy to build revenue over the next 12 months, with over one-third of respondents ready for enhanced eCommerce. Additionally, eCommerce tied with customer relationship management (CRM) in the top spot in response to a question which asked which technologies WD companies would explore in the next 12 months.
7 REASONS FOR YOUR COMPANY TO DO BUSINESS ONLINE
Here are a few reasons why it may be a good idea for your company to consider doing business online and developing an ecommerce website.
- Flexibility - When your company does business online, you have access to the entire globe. You can align yourself with other companies and partners, and geography is not an issue.
- No Barriers - By the same token, you can draw customers from all over the world, so whether you are marketing products or services, your customers can span the globe.
- Versatility - For that matter your company can do business in any currency that you choose. The US Dollar is the most commonly used currency across ecommerce platforms, but if the Japanese Yen or the Swiss Franc made more sense for your business to use, it is your option.
- Diverse Customer Base - Courting customers in all corners of the world can have a stabilizing effect on your company's revenue streams. When one country is tightening its belt economically, other countries are still spending.
- Quality Products - By having access to world markets, your company can pick and choose which vendors that it wants to work with. Again since your company is not limited by boundaries, your company can choose the best and the brightest with which to align.
- Low Inventory Costs - Online businesses have direct access to goods that would normally pass through several, middle men, and this direct accessibility keeps your costs low. Then your company has the choice of enjoying the large profit margin or passing the savings along to your customers.
- Low Operating Costs - When running your business online, your company will have very low overhead. You do not have to pay rent for a storefront, hire employees, or even print advertising. You can run your company from your home saving on travel time and money. Creating an ecommerce shopping cart is simple and effective.
So as you can see, even if you are running a successful physical storefront, it would be wise to consider building an online shop as well, and who knows one day that may be all that you will need to run a successful business.