e-Commerce is Essential, Here’s Why

14 October 2020

The digital age has come with many new and improved ways of carrying out business; one of these innovations is e-commerce. E-commerce refers to any form of commercial transaction that takes place through the internet.

The digital age has come with many new and improved ways of carrying out business; one of these innovations is e-commerce. E-commerce refers to any form of commercial transaction that takes place through the internet. Goods and services are bought or sold online, removing the traditional “physical” setting of both the retailer and the consumer. In 2019, Statista reported the value of e-commerce sales in the UK at £76.04 billion. In 2020, E-commerce News stated an increase in this value to £222 billion. These figures are evidence of the growing importance of e-commerce. It is essential that your business is part of this online phenomenon particularly during this current pandemic. Let’s take a look at a few reasons why e-commerce is a crucial requirement for your business.

Increase in customer base

Unlike traditional retail stores, visited by customers within the local community, online stores are easily accessible by an unlimited number of global internet users. Rather than making the journey to purchase products and services, your customers could comfortably shop using just the internet and their smartphone, computer and many other devices. Using various digital marketing strategies, your e-commerce store can promote its goods and services to increase its customer base. Search Engine Optimisation (SEO) is one of such ways. SEO is the process of optimising your e-commerce website using significant keywords so that your content can reach a wide range of customers through their search results on various search engines. Social media platforms such as Instagram and Facebook have also included features to allow your online store to reach new customers and optimise your conversions rate.

Reduction in expenses

You incur fewer costs with running a business online than you would when carrying out business within a building. After a month of sales, physical retail shops have the headache of deducting expenses. Costs such as utility bills, rent, maintenance, staff wages, inventory control, and many more are reduced when the business replaces its physical store with an online presence. With fewer bills to pay, and a reduction in staffing requirements, you can pass on the savings to other parts of your business, such as pricing or marketing for example. With the help of software programs, your inventory would be well managed and therefore reduce inventory costs. These measures are highly likely to have a more positive effect on your profits.

Unlimited accessibility

Establishing your business online, creates global unlimited access to your company. Your customers can get access to your goods and services at any time of the day and anywhere. Traditional or physical forms of shopping face permanent geographical challenges. It is very difficult for your non-local customers to move from their regions to your place of business. Being an e-commerce business makes it easier for your customers to purchase your products regardless of their location. The removal of geographic boundaries makes it even easier for you to obtain an international presence and audience.

Excellent customer services

Chatbots and other communication tools provide an efficient and effective medium of communication between your business and customers. Your customers can receive speedy and informative responses to their enquiries, leaving them satisfied. E-commerce also creates convenient purchasing options for your customers, which boosts your rates of customer satisfaction. A happy customer is a good poster for your business as they would recommend you to others and increase your business’s success.