Do you know that the global ecommerce industry stands at about 6.5 trillion dollars in 2023 and is growing rapidly at nearly 26% a year at the current rate? With ecommerce sales rapidly growing at such a pace, this presents a worrisome scenario for physical store retailers. On the other hand, this shift in market dynamics can provide such business owners with a great opportunity to capture more sales, by entering the ecommerce market. But before you make any necessary step, especially in business, it’s imperative that you research it. Therefore, we must understand the reasons behind such a transformation in the retail industry.
The increasing use of digital technology:
There’s no doubt that the advancement in digital technology has laid the foundation for the success of the ecommerce industry. But when we have had computers and the internet for so long why is ecommerce seen rapid progress in recent years? Well there is no one factor but the increasing use of technology is surely one of them:
Technology has become cheaper which means more people now have access to computers and other internet devices.
Computer literacy has increased so more people can use technology with ease.
Technology has made mobility possible with handheld devices connected to the internet. People can use the internet wherever and whenever they desire.
Impact of socio-economic factors:
Socioeconomic factors have always played a significant role in shaping human lives. Our way of life adapts to the demanding circumstances that present themselves, motivating us to opt for options that serve to ease these challenges. Some of the ways in which the lifestyle challenges and changes of modern times have given rise to ecommerce are:
The busy work routine motivates people to buy online and get items delivered to their homes.
The covid-19 pandemic has given a significant boost to ecommerce since people started practicing social distancing.
The rising fuel costs and free shipping offered by many vendors lure people to buy online.
The use of social media has made it possible to reach a greater audience online. Plus, now anyone can start selling on social media sites without the need to set up their own webstore.
Benefits of webstore as a retailer:
Ecommerce selling has great benefits compared to a physical store when it comes to selling. Therefore, many retailers are opting for this method of selling.
You can reach a wider range audience by selling to people anywhere in the world, not just in your locality.
The operational cost for ecommerce store is comparatively very less since you don’t need to own a physical place and pay for its rent/lease and utilities.
You can sell 24/7, not just during particular operating hours, allowing you to capture more customers.
It is much easier to generate leads and convert them. You can use tools such as email marketing, run ads on social media and provide personalized discounts.
Benefits of webstore as a customer:
Not just retailers but ecommerce also offer great advantages to customers. These advantages also serve as the main reason why people are increasingly preferring online shopping
Ecommerce stores offer detailed information about the products, such as images, videos, reviews, and comparison features. This allows the buyer to make more informed decisions with confidence.
It’s easier to browse the product variety online. Online marketplaces offer products from different vendors ensuring a greater variety of availability on a single platform. And still, if you can’t find products on any single site, then you can always visit any other webstore in no time.
Ecommerce sites allow old and handicapped people the great convenience of buying from their homes.
Conclusion:
It would not be wrong to say that commerce is amongst the top field brought on by the digital revolution. Therefore, it is imperative that retailers must understand the importance of it and adopt this way of selling if they want to remain atop of the competition.
x2xecommerce being an expert in providing business solutions to ecommerce industry can help you set up an ecommerce store. And if you’re already into retail business using other business solutions to manage your operations, the x2x team can also implement an integration solution for you, integrating your webstore with your other business solutions.