In 2013, online retailers estimated to be worth more than $43 billion dollars with sales reaching over $32 billion. These estimates include all types of online retailers, including digital download providers, internet sellers, Amazon shops, website owners, etc.
The entire industry is trending upward as people continue to gain access to technology and higher speed connections.
More stores are opening up websites or combining brick-and-mortar locations with an electronic presence. More options allow for personalization that were not available before.
It is also easier to run successful campaigns on social media which can contribute towards your marketing budget.
There are many factors that contribute to the increase in number of e-retailers, including decreased shopping costs and the widespread use of credit cards.
The popularity of online retailing is growing rapidly today, so if you’re an entrepreneur thinking about starting your own company, now is the time to get involved.
Without any internet sales, it would be impossible for thousands of businesses to reach millions of customers and stay competitive. With nearly everyone having access to a computer or smartphone, there’s no reason not to sell products directly to consumers.
Getting started as a small business owner can seem overwhelming, but we have help for you. Check out our article on how to start a customer service business website. You can also find helpful information under the “How To” heading at BHW Business.
We provide all the necessary information to get up and running, with tips for building trust among your clients, and more advice to benefit your business overall.
Manufacturers are able to reach more customers by selling directly to consumers. This is called "direct sales."
Many sellers choose to offer direct sales because they want to sell products they love, or because they lack the overhead needed to operate a retail store. Some goods require little storage space, so there’s not much of an issue here.
For some retailers, the ability to shop directly helps them avoid having to pay for overheads (like rent). It also gives them more control over their product selection and marketing messages.
Direct sales can be a good opportunity to expand your brand beyond what you are comfortable with. Without hiring extra staff or paying additional money, you can gain new customers without any risk.
However, there are obstacles to dealing direct. You need to make sure that your technology is up to date, you need to have enough funding to take care of all payment processes, and you must ensure that your products adhere to government health regulations.
Furthermore, many people do not know about these requirements, which makes it hard to grow. For those who wish to start, the information is available online.
It is very important to keep in mind that establishing a direct relationship with your customer is one of the hardest things you will ever do as a business owner. Once you build a reputation as a seller of quality products, people will continue to buy from you out of habit.
To achieve this level of trust, you have to consistently provide a great experience for your customers. If you look around your home, you'll see that most services offered directly by companies are less expensive than ones offered by third parties.
Even with the growing popularity of online shopping, in-store spending still makes up over 50% of all retail sales. However, that percentage is decreasing every year as people choose to spend their time searching for deals online.
The increase in online shopping has also changed how businesses interact with their customers. When customers order from an online store, they usually receive an email confirmation of their purchase. Rarely do consumers call the store to check on their payment or ask questions about their order.
Most stores rely on emails and orders being correct to generate revenue. With most brands taking advantage of digital marketing strategies such as social media advertising, it’s easier than ever to shop online.
Since customers can easily find various prices for the same item, manufacturers should reduce the amount they charge for shipping. Consumers prefer having the option to select their favorite products while avoiding exorbitant shipping fees.
Another important question to ask yourself is “how many customers are looking for my product?”
This takes into account two factors, your cost of production as well as what it costs you to sell such as shipping.
If you have a low cost of production and high sales prices, then having lots of customers without them being able to buy anything from you would be a waste of money.
On the other hand, if you have a higher cost of production with lower sale prices, then more people wanting something from you is better than not enough people wanting to pay you.
It all boils down to whether or not you can sustain the business. If you can’t, then you will lose money and eventually go out of business.
Another term for ecommerce is “digital commerce” or “online shopping.” Digital comes first here, as this is where most people go to shop. The next word, momentary means that a sale is limited time only. If you do not act quickly, someone else will!
Also, more often than not, digital sales are faster and easier than in physical stores. You can search online and find what you want in the color you prefer and have it delivered to your home within days! It also does not cost any money to try products before you buy them.
Finally, online companies provide accountability. Once you leave a store with a product in your cart, there is no turning back. You can compare prices at different places and decide where to make your purchase.
Each place charges their own fees for using their service, so it is important to compare them all until you find the one that is best for you.
Even if you sell products all year round, there are seasons where your business will be more active or popular. For example, in the summer you’ll need to stock up on water bottles for fans, umbrellas, and beach bags to attract customers seeking outdoor activities.
You can use special offers to lure people into making an purchase. There is no need to force them to buy by using prices and discounts.
If you have a wedding season, you may want to promote berry buying during July and August.
This works the other way around too. You can promote sales from spring break trips, festivals, and weddings until winter arrives.
Try going mid-September through early October because this is when families prepare their back-to-school supplies.
Then, in late September and early October, many college students start spending time with their parents so they can start earning money while still attending school.
Lastly, Thanksgiving and Christmas are great times to offer discounts and promotions. Many companies advertise holiday deals to increase customer engagement.
A much-needed precaution that many people do not take when shopping online is ensuring their safety by keeping their personal information safe. This includes passwords, ATM cards, fingerprints, or any other forms of identification necessary to access one’s accounts.
It also includes recording one’s keys, phones, and credit card numbers if ones has them stolen. One can even write down one’s schedule so others will know when important events occur.
Security doesn’t happen overnight, but taking some time to prepare one’s self before entering their private information into a website is better than getting scammed later.
Although you may be used to working in U.S dollars, any money that you use must actually be available here. There are no official restrictions about exchanging your own country’s money in foreign countries, but it is not usually widely done and there is never an easy way to do it.
You will also have a hard time changing euros or pounds back into your home currency at one of the many exchange houses found around airports. It is easier at towns and cities with a high European presence.
In fact, some of these places can be very difficult to navigate without local help!
Alt currencies such as bitcoin exist, but they aren’t commonly used for shopping.