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With shopping culture changing rapidly, e-commerce has long proved its position in the modern world. Highlighting the role of digitalization for businesses would be superfluous in our days. According to statista.com, e-commerce revenue hit $4.9 trillion as of 2021. And with customers requiring more convenience, online shopping is becoming a pure necessity. Well, there is nothing to be surprised by; customers prefer single-click purchases delivered to their desired destination. And businesses’ pure purpose for switching online is not only about keeping up with customer requirements. It is a win-win situation; we will show you how:
You have no geographical barriers
We have previously discussed that taking your business to online platforms ensures a broader market outreach for you. You can boost your sales by making your goods and services accessible beyond your business's physical location. As a result, no geographical barriers will affect your target audience. Hence, the chances of enhancing your entire business growth increase, too.
You are always available
E-commerce has come to switch the door sign from “open-close” to “open only”. Imagine having a store that is available for customers anytime. That means customers will no longer skip your goods just because their work life isn’t compatible with your open hours. That implies making sales even when you are not working.
Know your customer and make smarter business decisions
Once your business is on the web, there is a lot you can find out about your customers that will help you make smarter business decisions.
Collecting data allows you to conduct an in-depth analysis of your customers’ online behavior, like their buying habits, attitude toward your brand and the competitors. The latter can help you with risk prevention and market trend predictions.
You stay current
Even if your store is located in the most luxurious part of the city, no matter how fancy the interior is, online presence does matter. And it isn't even about customer loyalty: if your customer can find the goods online, you should probably start worrying.
Expanded communication channels
In terms of customer care services, online platforms give numerous options to hold the processes. And because these platforms allow fast communication, customer inquiries will no longer be on the waiting list but get an immediate response whether it is a payment issue, an ordinary suggestion, or a complaint. Note that good customer care also ensures your high brand image, so do not spare on that.
It’s a win-win
Well, time to think about your most important asset, your customers. Luckily, this is a win-win situation, and by that, we do not mean only saving time. Here’s how:
- Price comparison
Customers are privileged to check the prices in different online stores and find the right fit for them - Sales updates
Online portals continually notify customers about sales and discounts - Product description
Customers are provided with a detailed product information - Review and feedback policy
Customers can check the review section for their desired product and make decisions upon others’ experience
Due to the set of benefits online portals offer, customers can make convenient purchases.
There are red flags though
Along with all the advantages, setting up an e-commerce business may have its red flags, too. Although all businesses face force majeure situations, there are several steps you could prepare to make it least sensitive to possible risks.
Customer security
As much as data collection provides you with the necessary information for your decision-making, you have to be very careful with your customer data. And not only does this refer to confidentiality. You may indirectly give out customer information in case of data breaches. Although site crashes aren’t always predictable, a reliable and secure host would ensure a more secure performance for your online business. So it’s never an extra cost if your alternative is losing revenue and experiencing customer dissatisfaction.
Keeping up with the competition
Yes, we have stated it; competitors may be ahead of you, and way too ahead. To get ahead of high competition, you have to constantly work on your digital marketing, mainly strengthening your site’s SEO performance alongside all the digital advertising tools.
Is e-commerce here to replace physical stores?
For this, Jason Goldberg, founder and CEO of Fab.com once said this: “In the beginning, e-commerce was really about getting commodity products online as cheaply as possible. Now, we’re moving into the more exciting phase of e-commerce, where it’s about emotional products – the things people really cherish.”
There is no definite answer to this, with the global pandemic and inflation causing a lot of changes in shopping habits. Thus, it is hard to foresee what results we will record in the future. Businesses must be professional enough to act according to the tendencies of the era. A great solution would be leveraging each one's strengths to ensure customer satisfaction and meet business expectations
Tadaaa! You have learned about the benefits and shortcomings of e-commerce. And if risks hold you back from giving it a go, go back and check out the solutions we provided above. Also, check out some of the e-commerce platforms we have created previously.