In a world that has fully embraced the internet, any forms of physical interactions are quickly fading away. In recent years, we have seen the birth and flourishment of various internet-centred businesses, e-commerce. Jeff Bezos’ Amazon employs 798,000 employees in its 175 fulfilment centres spread worldwide; Mark Zuckerberg’s social media platforms have a third of the world’s population signed up.
So, why do these mammoths keep on growing despite the world’s economy hurting?
1. Lower running cost
E-commerce uses digital advertising, which is inexpensive and easily changeable to meet the ever-changing markets, trends, and budgets. An e-commerce merchant saves on rent and staff; with their businesses hosted by the internet, there is no need to rent space to open up another store or hiring employees needed to operate them.
2. Shreds the physical location barrier
Traditionally businesses are located at a physical location serving those in its geographical area. E-commerce, on the other hand, can reach everyone connected to the internet turning its market global.
3. Always open
E-commerce websites run nonstop all year round, making them convenient for customers who are no longer restricted by time. Online shopping can occur at any time across the world, considerably boosting the merchant’s revenue.
4. Facilitates well-informed shopping
When shopping online, a customer can get all the information they need about a product before purchasing it from the product description offered on the website. Using this information, a customer can conduct the necessary analysis to decide which product meets their requirements. This additional information has a zero or little creation and maintenance cost to the business.
5. Great customer experience
E-commerce websites are accessible, smooth and comfortable to use. By not having to leave their home, a customer avoids traffic jam and overzealous salesperson trying to push more product. The convenience ends up outweighing the extra shipping cost.
6. Always evolving
E-commerce is continually changing with emerging technology, and this always keeps it competitive.
The retail world is being reshaped, and e-commerce is quickly catching on by being a low-risk and low-cost investment. In the so not distant future, online trading will be the new norm.