Here’s why you should Consider Owning an E-commerce Store

Tired of the listening to the endless debates on what the rapid growth of e-commerce stores spells for the future of brick and mortar stores? Here are few facts from a report given by Statista on e-commerce

• In 2017, over 2 billion mobile phone or tablet users made some form of mobile commerce transaction.
• In 2017, mobile commerce hit an estimate of $700 billion in revenue.
• Retail e-commerce sales worldwide hit $2,290 billion in 2017 and were expected to increase to $2774 billion in 2018

Going by these fact, predicting the future of brick and mortar stores is no brainer at all. With further advancement in technology, e-commerce will continue to define and redefine how people buy and sell goods.

So, if you are yet to own an e-commerce stores, here are 4 more reasons why you should start mulling over what products you will like to sell:

Also Read: How to start your successful DROPSHIPPING BUSINESS with AliExpress

#1

Reduced overhead cost

The cost of running a physical store doesn’t just stop at buying products for sale. Other expenses incurred are not limited to electricity bills, store maintenance, product packaging, goods delivery, marketing, store rent, and security. This probably explains why owners of mortar and brick stores struggle to break even in their first few months of doing business.

In contrast, the overhead cost of managing an e-commerce is in no comparable with that of a physical. Its presence online rules out expenses like security and electricity bills. In fact, with the dropshipping model, the cost of manufacturing, storage, and product delivery is completely ruled out. In other words, it is possible to make good money without owning any product or handling the goods.

#2

Wide customer reach across geographical locations

With an e-commerce store, difference in geographical location and time zone is no longer a barrier to doing business with people in different locations around the world. With e-commerce stores, displaying product information, negotiating prices, making payments, and product delivery can be easily done using a wide range of automated processes and software. For instance, a good number of dropshipping platforms not only allows sellers to ship products to different countries (and not necessarily from the country they reside in), they also allow sellers to track the products’ movement till they get to the buyers.

In dealing with time zone difference, e-commerce stores can be automated in such a way that customers can make purchases round-the-clock and do not have to worry about the different time zone of sellers.

#3

Cost effective and effective advertising options

From handbills to flex banners, business cards, receipt booklets, and brochure, it is no brainer that the advertising cost of a brick and mortar store is way higher than that of an e-commerce store. Since everything about an e-commerce store happens online, the best advertising options include social media marketing, email marketing, search engine optimization, a user-friendly website, and other digital marketing strategies.

Thankfully, all these are relatively inexpensive and more effective because ads can be easily targeted and retargeted to the right segment of online buyers.

#4

Increased profitability

Compared to a mortar and brick store, an e-commerce has more chances of being more profitable because it doesn’t have to deal with huge overhead costs and expensive advertising options. Its chances are further increased by its access to over 3 billion internet users and a more flexible price model.

Without doubt, e-commerce is the business of now and the future. There is no way the world will go back to doing business in mortar and brick store. So, if your business must remain relevant in years to come, you had better start mulling over what online business model will work best for whatever product or service you decide to sell.

Think e-commerce, think business.

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Also Read: 9 Steps To Start A Dropshipping Store With Shopify