Conversion Optimization 8 min read
9 Advantages of Ecommerce to Your Business and Clients
- 24 Jun 2021 6 min read
Even before the pandemic started, different businesses adopted ecommerce to take advantage of the internet and tap the potential market on different ecommerce platforms. But ever since the coronavirus outbreak, the online platform boomed when strict lockdowns were imposed globally – underscoring the benefits of ecommerce.
Studies suggest that in 2021, there will be 2.14 billion global digital buyers, with millennials (aged 25 to 34) as the largest group of digital buyers. This growth signaled the need for businesses to keep up with these rapid digital shifts.
With the continued patronization of online shopping by consumers, business owners need to explore and leverage the advantages of ecommerce to business. In doing so, you can begin to maximize your profit while at the same time, minimize costs.
What is ecommerce?
Ecommerce or electronic commerce, involves selling and purchasing products and services online. It also includes the transfer of data and money to accomplish sales. The transaction happens online, not at a physical brick and mortar store. So regardless of time or location, the business transactions can take place.
Examples of ecommerce platforms and sites are marketplaces such as Lazada, Shoppee, Carousell, Metrodeal, Amazon, or eBay. There are also owned commerce sites – such that are developed specifically for your business through expert ecommerce development.
Each has their own unique benefits that can accommodate certain requirements and capabilities for your business. So you’ll definitely have to take time weighing out the benefits of marketplaces against owned commerce
Lastly, ecommerce can help facilitate various transactions between business-to-consumer (B2C) or business-to-business (B2B).
Why ecommerce is important for businesses
With an idea of what ecommerce is its applications, this list presents a solid guide that highlights what are the advantages of ecommerce. Using this, you too can explore them once you start an ecommerce business or apply that to your business strategies.
- Reduced operational costs
- Creative marketing strategies
- “Doors” are open 24/7
- Reach more audiences and customers
- Simultaneously cater to multitudes of customers
- Collecting customer feedback and data
- Automates business processes
- Varied payment options
- Convenience and safety
1. Reduced operational costs
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One of the biggest benefits of an ecommerce website, you get to reduce costs on rent, store upkeep, furnishings, equipment, and utility bills. Instead of renting a commercial space, if you hold a lot of items, it would be best to lease warehouses where you can store your products for safety. When you scale up your business in ecommerce, all you need to do is to add more to your inventory, storage space, and do some digital marketing tweaks.
Due to affordability, ecommerce stores are good start-up businesses for first-time business owners and small-scale sellers who don’t have the required start-up capital to open up a physical store. For first-timers, you can use a third-party ecommerce platform which is a website that offers pre-made ecommerce functionalities. Here all you need to do is to register, post your products, and sell.
2. Creative marketing strategies
Another advantage of ecommerce businesses is there are different ways in how you can introduce and promote your product to the market.
With ecommerce, you can summarize the details about the product or service you provide. That way, your customers get to know the specifications of the product they want to purchase.
Of course, because you are promoting your product and services digitally, you can add life to your plain texts. You can use pictures, videos, infographics, and adapt content marketing tips to increase your ecommerce visibility.
3. “Doors” are open 24/7
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Ecommerce websites can run all the time. So even if you are sleeping or you don’t have 24-hour customer support, you can automate your site so that your customers can purchase or avail of your products and services any time of the day, anywhere they may be.
4. Reach more audiences and customers
Geographical locations of the product or service provider and the customers do not hinder from selling products. With ecommerce, anyone in the country – even the world – can be your customer.
The buyer doesn’t need to travel to the physical store of the seller to select and purchase items. Instead, all the process takes place online and the items are shipped to the address of the buyer.
5. Simultaneously cater to multitudes of customers
Another reason why ecommerce is important for business is that it makes the customer experience more convenient. Customers don’t need to wait in long queues to complete their purchase. Thanks to ecommerce, the process of placing, processing, and paying for an item or service can happen at the same time regardless of how many there are.
6. Collecting customer feedback and data
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The information that customers give once they register such as name, email address, and contact number at an ecommerce website is a goldmine of customer data.
Through analytics platforms like Google Analytics and MS Clarity, you can see the customer behavior and demographic data of people who use your ecommerce site. This information helps you optimize customer’s journeys, marketing strategies, and products and services offered.
With this data, you can send information about sales, promote a new product, or just keep in touch with your customers. All of this information is collected with the user’s permission and is used only for official purposes, nothing more outside of the business.
7. Automates business processes
To lessen human error that usually happens especially in manual work, you can automate processes in ecommerce.
For example, you can prepare automated chats that may answer some of the questions of your clients. That way even though there’s no one from your company to answer a question at a specific time, your customer can still get the answer they need.
You can also automate updates on your inventory and other factors that will help you operate your business a lot smoother and faster.
8. Varied payment options
Another advantage of ecommerce to businesses is that ecommerce sites and platforms allow varied payment options such as cash on delivery, credit or debit card payment, bank transfer, and e-wallets. Just make sure to guarantee your customers that your site is secured so that they won’t hesitate to provide you with their bank and card details.
With these varied choices, your online store has a higher chance to improve the turnover of your site. It also allows customers outside your country to pay for a product or service from you without undergoing a long process of manually converting their money’s value to your currency.
9. Convenience and safety
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Ultimately, ecommerce businesses limit your face-to-face interaction with people, therefore limiting the spread of coronavirus. It allows clients and sellers to operate businesses wherever they may be.
Even if the pandemic ends and the world goes back to the “old normal,” ecommerce is here to stay. This is apparent due to how the modern world has molded everyone to be digital natives. The older generation today is even adept at using the internet and modern technology to do day-to-day activities. Most, if not all, now rely on digital solutions and expect businesses to be made available online.
It’s also a more inclusive and accessible shopping experience platform. Because the need to go to a physical store is eliminated, retirees, people with disabilities, and busy individuals are more enabled to acquire their needs and wants without sacrificing too much time and energy.
Knowing why ecommerce is important for businesses will help you see how it can help with your business and what actions you may need to take to benefit from it. As a summary, here are some reasons why you should consider ecommerce for your business:
- Ecommerce is here to stay because of the continued technological advancements and people’s dependence on the internet.
- Building up a reputation that your products and services are of quality and that your site is safe from financial fraud will make customers trust your business more.
- Adopting ecommerce SEO best practices is essential to make your brand, products, and services stand out among the pool of businesses found online and in online marketplaces.
If you need expert advice and assistance with your ecommerce development or you have found ways to make ecommerce strategies work best for your business, let’s talk. Reach us on Facebook, LinkedIn, and Twitter.