With the founding of Amazon and eBay, it started in the mid-1990s. The need for shop software was born. For the first time, ecommerce website it was possible to buy and sell products via the internet.
With ever-increasing digitalization, the world of online commerce has become more and more diverse. But many retailers are still reluctant to invest in e-commerce today. In the following article, you will find out why it can be worthwhile to expand into the world of online trading and to use a shop system, and what e-commerce is about.
What is e-commerce?
E-commerce, also known as online or electronic commerce, refers to the sale and distribution of goods via the Internet. Digital marketplaces or shop systems make it possible for a buyer to shop online around the clock. A stationary store with representative sales areas is not necessary for e-commerce.
Are you already thinking about becoming active in online trading? If you are still hesitant, take a look at the 5 advantages of e-commerce at a glance:
- Reach increase and brand awareness: Digital marketplaces allow you to reach a much larger target group than through brick-and-mortar retail. This will also make international customers aware of your product and thus increase your brand awareness and reach. This can also benefit your stationary trade. In the housing and furnishing industry, in particular, the part of Click & Collect (buying online and picking up stationary) is constantly increasing on the Internet.
- Target groups can be defined more precisely: By being able to evaluate the information of the shop systems and marketplaces, your target group can be determined more precisely. This allows you to target advertising and better reach your prospects with your online and offline marketing.
- Make customer information available at any time: On an eCommerce website, you can provide as much information as you want. Your customers appreciate that. From product descriptions to manuals to shipping costs – you can provide prospects with all the information you need to make an informed purchase decision. You also do not have to hire people to answer all these questions individually. This leaves more time for other tasks.
- Reduce operating costs: An eCommerce website causes lower costs. By using a web-based management system, you can automate inventory management and reduce associated costs. Furthermore, in a pure e-commerce store, the overhead costs that are borne by a retail store. The costs for website design required IT infrastructure is compensated by the increased range.
- Profit and sales increase due to increased conversion figures: By using digital marketplaces, you can reach many more customers than in purely stationary retailing. As a result, you will normally sell more. Another benefit is the positive feedback that customers can leave through rating systems. And even if negative feedback should be included, you can react to it, engage in dialogue and improve. Your customers feel taken seriously this way. On the one hand, this strengthens customer loyalty and, on the other hand, makes it easier for potential customers to find out about your products.
To repeat Charles Darwin analogously: “Only those who adapt will survive” applies in a figurative sense for the existence of the economic market.
Even though the extinction of brick-and-mortar retailing is unlikely in the next few years, the areas of online trade will continue to expand and be supplemented by additional branches.
New technologies will give more and more opportunities to be “online”. Especially about the developments in the field of virtual reality, it is only a matter of time until the virtual strolling and trying on in real shops is possible.
Companies should therefore not underestimate the synergy effect between stationary and online trading. Especially about the increasing number of multi-channel buyers, it is a good idea to become active on the various marketplaces – both online and offline.