Why You Should Consider E-commerce
Are you selling your products or services online? If the answer is, “no,” have you considered it but don't know how to get started? If so, Hive can help! In recent months, we've seen increased demand for easy-to-navigate, mobile-friendly e-commerce solutions and helped several companies get set up to thrive online.
Sure, e-commerce has been around for years, but the landscape has dramatically changed in the last 12 months. COVID-19 accelerated online sales' growth by 4 to 6 years! The pandemic illuminated many e-commerce advantages, particularly convenience and safety. According to a Deloitte report, 85% of retail sales were through brick-and-mortar stores up until 2019. COVID-19 caused traditional retailers to scramble to get online and e-commerce numbers soared. For example, 2020 was the first year many of us shopped online for groceries. In March 2020, 42% of US consumers shopped for groceries online at least once a week compared to just 22% in 2018 (GeekWire, 2020).
Become.co predicts that COVID-19 will continue to increase US e-commerce by almost 20% over the next year. Because Coronavirus served as a catalyst and propelled consumers to more quickly adopt shopping behaviors they were already integrating into their lives, we can expect these new habits to continue, even after the pandemic has abated. More than 50% of online grocery consumers say they're planning to continue shopping online after the pandemic.
top 3 benefits of e-commerce for consumers
Lower prices. One of the most significant advantages of running an e-commerce store versus a physical store is lower overhead. This lower cost of doing business translates to cost savings for the consumer. Because online prices can be lower than traditional store prices, e-commerce sites can also offer customers more attractive discounts and promotions.
Convenient and safe. The ability for customers to shop when they want from where they want makes a shop more accessible and safer alternative to heading out to the brick and mortar store. Coronavirus aside, avoiding lines, weather, and crowds are definite pluses for customers!
Saves time. Time is precious. Shopping online provides massive time savings for the consumer. 81% of retail shoppers conduct online research before buying. The overwhelming majority of retail consumers start their sales journey with online research (source: GE Capital Retail Bank). By offering wares online, a business can meet clients where they already are (rather than requiring them to leave their computers and travel to a brick and mortar location), giving them the gift of time.
top 5 benefits of e-commerce for business
Lower costs. Businesses can enjoy lower overhead costs when they reduce the need for a large physical storefront. Since e-commerce is more automated, fewer staff members are required to run an online shop. Marketing an e-commerce store using Google Adwords and social media e-commerce solutions like an Instagram store are also much more cost-effective. Lower costs can then translate to lower prices for the consumer and in turn, more sales.
Access to customer information. When someone walks into a store or restaurant, the business may not be able to learn much about that person’s consumer habits or how they can be reached for repeat business. Not only do online consumers typically provide contact information when checking out or registering on a site, but e-commerce sites also offer a wealth of consumer behavior and demographic data that can help businesses optimize the consumer journey and re-market more effectively and accurately in the future.
Wider customer base. With e-commerce, businesses can sell their products to online shoppers across the country or even the globe. They’re not limited to shoppers in a local area. If a business has a niche product, an online presence opens up their unique offering to audiences they may not be able to otherwise reach.
Always open! When selling online, a business is open 24/7/365. It's nice to wake up in the morning to sales that happened as you slept!
Easy to scale. Scaling up or growing a physical store requires more floor space (and the expense that comes with it!), employees, and shelf space. In contrast, it's pretty simple to grow an online store. By adding inventory and possibly more storage space (typically less costly than storefront space), a business can more easily make sure supply suits the demand.
what's next?
What's in store for your business in 2021? Based on the benefits of e-commerce for consumers and companies, as well as the e-commerce statistics, it's clear that online selling can be a win win for all and may be an easy way to increase your business’s reach and profits. If you'd like to discuss Hive's e-commerce solutions, drop us a line, and we'll help you get launched!
