Is it Worth Investing in eCommerce?
Back in the 60s, the boom of Big Box stores changed the small-business-owned retail market, ousting many small players from the market. Today, history seems to be repeating itself with the eCommerce giants like Amazon and Walmart eating up small eCommerce stores. This is why many new business owners today are preferring to create an online store on these marketplaces. What are the opportunities for investing in eCommerce today? Should you consider starting an online retail store? Is it a good idea to own a third-party seller store on an eCommerce marketplace? You’ll find answers to these questions and much more in this article.
Should You Invest in eCommerce?
Here are a few reasons to help you decide:
1. Massive Growth Potential
According to eMarketer, global eCommerce sales in 2022 will exceed $5 trillion for the first time, accounting for over a fifth of overall retail sales. By 2025, the total eCommerce spending is expected to surpass $7 trillion.
The report further reveals that the global eCommerce spending growth had exceeded 20% annually since 2011. In 2020, despite the pandemic slowing down many industries, eCommerce growth actually accelerated in several markets, despite declining economic conditions.
Going forward, eCommerce will still grow faster than brick-and-mortar businesses. This means eCommerce stores, both big and small, have a great potential to succeed and increase their income.
2. Faster Go-to-Market Time
Your online store can be up and running in just a few clicks. Many eCommerce platforms like BigCommerce, Shopify, and Squarespace provide built-in templates that are good enough to create a basic store. Likewise, eCommerce marketplaces such as Amazon, Walmart, and eBay only require you to set up an account before you start selling.
You can even grow your business substantially by leveraging automation that streamlines your eCommerce business processes to make you more efficient and profitable. Plus, automation makes your business easier to run. As a result, you can focus more on improving your sales.
3. Customer Tendency for Online Shopping
Do you know that around 87% of customers begin product searches on digital channels? Even if they end up purchasing from a physical store, customers are more likely to start their search online, particularly on marketplaces like eBay and Amazon.
According to the 2021 PWC report, there’s a strong shift to online shopping post-pandemic as people were first confined by lockdowns, and then many continued to work from home. During this time, about 37% of customers switched to buying products online mainly due to convenience. The graphic below illustrates how customers are becoming more tech-driven and shifting to online shopping after the pandemic.
Source - PWC
A survey of US customers by McKinsey & Company reveals that consumer intent to shop online, even after the pandemic, continues to increase, especially in the essentials and home-entertainment categories. About 35% customer growth is expected in essentials such as over-the-counter (OTC) medicine, domestic supplies, groceries, and personal care items. Even discretionary categories like skincare and cosmetics, clothing, and jewelry and accessories show anticipated consumer growth of over 15%.
Source - McKinsey & Company
4. Improved Shopping Experience for Customers
Customers don’t just search for products online. They complete purchases online, too. eCommerce makes it easier for customers to hit that buy button, no matter where they are physically located. Consumers can complete purchases from social media ads, mobile apps, websites, and more.
eCommerce allows sellers to remove friction points, making it convenient for consumers to buy the products they want. It empowers you to meet the shopping expectations of your customers. With an online store, you can sell where your customers are. If most of your consumers shop online, then you should be selling online, too!
Start Your Own eCommerce Store with AWM
With an eCommerce store, you can reach worldwide customers and tap into new demographics. You can easily become a third-party seller on any eCommerce marketplace and earn a steady passive income.
Our eCommerce experts at AWM can help you set up a Walmart or Amazon automation store. We can even help you get Walmart approval for seller accounts. We offer full-service automation packages for Amazon and Walmart, including the Wholesale and Dropshipping Fulfillment model.
From small and medium-sized companies up to wholesalers, we help you find the most competitive solutions to scale up your business, whether it is about establishing business credits, qualifying for eCommerce platforms, or running automated retail systems; we are the most reliable answer for your need.
We not only help your business get off the ground but also provide tax exemption, social proof building, and general branding services for our clients. Get in touch to learn more about how we can help you establish a profitable eCommerce store in 2022 (and beyond).