The rapid rise of e-commerce is partly due to the global pandemic, but it’s also been a logical shift thanks to evolving consumer trends. Shopping online is easier, more secure, and there is a wider choice available at competitive prices. It’s an ideal time for investors to take advantage of this as the e-commerce market has only been predicted further growth.
With the help of an e-commerce marketing agency, many businesses now have the expertise to succeed online. Here are some of the best reasons investors should consider investing in e-commerce.
Global shift to shopping online
In the second quarter of 2020 e-commerce made up 1 .1% of total retail sales in the U.S. alone. This was a huge jump considering the beginning of the year and last year’s results. This is due to the global shift in general to online shopping and how the pandemic affected brick and mortar stores. Shopping online is always evolving and things such as new secure payment options and smartphone compatibility have resulted in greater success for e-commerce businesses.
Reduced costs
E-commerce business owners save money on in-house staff wages, commercial real estate, and advertising and marketing. With a digital marketing agency, they can promote their business for a lower cost online using pay-per-click (PPC) advertising, social media, and search engine optimization (SEO) strategies. Marketing almost entirely online, e-commerce businesses can reduce costs and reach out to new customers at the same time.
The convenience of shopping on mobile devices
According to a recent survey, 5 % of consumers prefer to shop on their mobile making e-commerce their first choice. Without geographical limitations, you can shop online or run your e-commerce business from anywhere. There’s also been an improvement in the accessibility of e-commerce sites and many are now better adapted to mobile use.
Wider choice
Consumers prefer shopping online because they have access to a wider selection. Price comparison sites let them know where to find the best deals, and it’s much easier to locate the product you want. With the rise in choice e-commerce sites now need to be more competitive. Many people work with a marketing agency, so they can boost their online presence and ensure brand recognition.
Predicted growth
Even though it’s a competitive market, the e-commerce industry has been forecast considerable growth in the next years. There are also new trends emerging in e-commerce, particularly an environmental focus. Consumers are demanding more sustainable packaging and shipping, for example. The e-commerce industry is still on the rise, however, and with the right future-proofing methods, many online stores can expect to successfully branch out to a wider market.
There are different options for those interested in investing in e-commerce. Investors can either consider buying stocks in individual e-commerce businesses or look into third-party fulfillment options such as Amazon or Shopify. Many small businesses choose to outsource their fulfillment, including the storage, packaging, and shipping of their products when they first start. There are many benefits including reduced operating costs and shipping rates, and a broader reach into new markets.
