Searching for a product or brand online and checking reviews has practically become a standard practice. A company website serves as a storefront, attracting the attention of potential customers and showcasing your brand to the world. A well-structured website brings you more customers and helps you stand out from the crowd. Offering your products online significantly increases your chances of selling them to a larger audience; in fact, according to OptiMonster’s data, 93.5% of global internet users have made purchases online.
Your online presence not only supports your business but also contributes to brand awareness and promotion. You become more visible to potential customers, leading more people to visit your e-commerce store or hear about your brand, then purchase your products or services and recommend them to others by leaving reviews or sharing their experiences on social media. This way, while running a business from home, you gain loyal customers worldwide. You are not limited to your local market.
If you’re managing a small or medium-sized business and still hesitate about investing in digital transformation, here’s a comprehensive list explaining the most important benefits of e-commerce.
- Increased Sales.
Availability of products 24/7/365 and unlimited customer access lead to more sales. When you’re not limited by the local market or physical store capacity, you automatically make more sales, adjusting your inventory to the needs of your customers. By adjusting prices to the global market, you can offer services or sell goods internationally. By spending less from your budget to run a store and simultaneously making more capital, you can save a significant amount of money and grow your business faster.
- Reduced Business Expenses.
E-commerce is the most economical way to expand your retail business. It doesn’t require high levels of initial capital and is very cost-effective. Most of the investment is repaid with early sales profits.
From a long-term perspective, buying a domain and paying for web development and good e-commerce hosting or services is cheaper than buying or renting a physical storefront. Some e-commerce platforms provide stockless selling services that help reduce storage and delivery costs for sellers. Chatbots can assist you in customer queries, and automation keeps all inventory and finances in one place, so you don’t have to spend money on additional software.
- Increased Availability of Products and Services.
Through online listings of products and services, retailers have a better chance to reach customers and promote their businesses. Since e-commerce platforms offer online listing and price comparison, your products and services are constantly visible. Additionally, you can serve those who cannot find products locally and decide to resort to the internet for sourcing them. Since websites are visual, online stores also provide you with unlimited opportunities to aesthetically present your products and stand out from the crowd.
- A Wider Range of Customers.
There is no doubt that e-commerce platforms help sellers reach buyers globally and sell their goods in a broader market. You’re scaling your business globally, and being online means you can sell to people from anywhere in the world. There are no limits to who and where you can reach. Expanding your business horizon not only earns you more money but also helps grow your business.
- Simplified Purchasing Process.
The most useful aspect of e-commerce is that a customer can directly purchase from you without leaving home or interacting with a salesperson after searching for a product online. Consumers expect products to be available instantly, and e-stores meet this need. Since online purchasing doesn’t require visiting a retail store and products can be shipped from anywhere in the world, consumers are not limited to local stores and spend less time shopping. This is also what makes e-commerce an attractive alternative for them. As a seller, you need to meet them online and provide what they’re looking for.
- Automation.
E-commerce platforms offer full automation, including financial systems, inventory, shipping, and customer services. This means everything is in one place and easily managed by one person. Chatbots can assist you in most queries, and artificial intelligence adds a personal touch to this communication. These simple solutions give you more time to grow your business and keep your customers happy without hiring additional team members.
- Benefit from Customer Advocacy.
Word-of-mouth marketing works very well in the online environment and helps promote your brand worldwide. People largely rely on reviews and others’ opinions. If a product is recommended by someone they trust or can relate to, the likelihood of purchasing that specific product from a particular seller is higher. The Digital Marketing Institute shows that 49% of consumers trust influencer recommendations, and 40% make purchases after seeing products on social media.
- Lower Advertising Costs.
Customer advocacy and increased brand awareness help reduce marketing and advertising costs. Since word spreads quickly on the Internet, with every review of your product or opinion left about your brand on Google or other independent consumer review websites, you can reach potential customers. Also, product listings on e-commerce platforms make your products visible to potential customers. Your products can be showcased using photos, videos, posters, or GIFs. All affordable tools are available to promote your products. Not to mention that e-commerce platforms are well positioned on Google, and algorithms ensure that everything listed on websites ranks high in search results.
- Flexibility.
According to KPMG, the main reason people shop online is that they can do it from anywhere on the planet whenever they want. This feature makes the shopping experience very easy and convenient. The pandemic, when people couldn’t shop from physical stores, facilitated the growth of e-commerce. However, those benefiting from e-commerce flexibility are not just buyers. Solutions like service automation or artificial intelligence software provide more freedom for retailers to sell online.
- Cost of Consumer Behavior.
Imagine being able to predict what and when someone will purchase from you. Imagine being able to tailor your offer to each customer’s needs. Imagine being able to direct your customers to purchase specific products. These things are not entirely possible when operating a physical store but can be achieved with an online store. Various analytics tools and the latest artificial intelligence software give you insights into consumer purchasing habits and help not only personalize the offer but also respond quickly to your customers’ needs and changing trends. This is a small step for more sales.
E-commerce, which gradually took over retail in the past decade, suddenly became the only valid way to reach customers when public health measures made store closures mandatory. The Covid-19 pandemic has significantly and probably permanently changed consumer behavior over the past 12 months. The online store has become indispensable for retail businesses, and online shopping has become a necessity. Despite the circumstances, it’s a win-win solution, and this sudden change provides some significant benefits for both customers and sellers. To name a few: more accessibility to products and services, simplified purchase process, increased access, and, most importantly, flexibility. These factors make it a perfect fit for everyone. So why not give it a try?