Did you know that the first ecommerce sale happened in 1994? A 21-year-old named Dan Kohn sold Sting’s Ten Summoner’s Tales CD to a friend who purchased it using his credit card for $21.48, including shipping costs. If the last few months of 2020 have taught us anything, it’s that uncertain times call for quick pivots on sales and marketing plans. This year businesses have been forced to adapt and evolve their 2020 strategies in a remarkably quick fashion. While we’re all navigating our new normal, ecommerce websites have been experiencing an incredible boom in traffic as consumers are turning to online shopping to gather their essentials and items. This has meant that traditional retailers have also found it necessary to embrace ecommerce.
With trends estimating that ecommerce sales in 2020 may exceed $4.058 trillion, traditional retailers need to make sure that their ecommerce sites are equipped to keep up with the increase in traffic and incredible amount of competition. If you don’t have an online store then now is the perfect time to make the investment. If this hasn’t convinced you that ecommerce is the way to go then here are a few more reasons why you should embrace ecommerce.
6 reasons why traditional retailers should embrace ecommerce
1. Advanced analytics
Nowadays, our world is powered by data, which is key for business owners to make important decisions. Solutions such as google analytics offer an insight into your visitors’ engagement on your website. This useful data helps businesses recognise shoppers’ habits, optimise product placement and encourage product discovery.
2. Efficient advertising
Instead of overspending on billboards and printed ads, online marketing offers unique opportunities. Your marketing team can quickly set budgets based on the cost of customer acquisition and target customers based on behaviour, interest and location. This enables you to rather invest in marketing channels that lead to profitable conversions and with a cost-per-click arrangement, you only spend your money if someone interacts with your ad. Gone are the days of printed ads, which can easily be glanced over in magazines and newspapers.
3. On-demand sourcing
Anticipation demand has always been a challenge for traditional retailers. However, many ecommerce based companies have set up lean supply chains and offered customised products in order to solve this problem. Instead of trend forecasting and stockpiling inventory, these companies only source materials and produce products after a consumer commits to a purchase.
4. Lifecycle emails
Companies who have regular contact with their customers are able to dramatically grow their bottom line and boost loyalty. While sending out generic email blasts may help deliver sales, it’s been widely proven that companies who carefully target their emails to subscribers experience a much greater boost in conversions.
5. Going mobile
In 2020, US mobile retail revenue is expected to be $339 billion, which is a significant increase from $207 billion in 2018. In fact, a third of consumers use their mobile device to do research before making a decision to purchase.
6. Social media
Companies who make use of platforms that enable ecommerce stores to sell directly through their social media pages are more successful at increasingly driving sales. The reality is that brand’s social posts have led to 55% of online shoppers to purchase products. With a simple click on a product link, consumers are immediately directed to a product page where they can make a purchase.
It’s clear that ecommerce is not a trend and it isn’t going anywhere anytime soon. The fact is that selling goods and services on the internet is highly beneficial to both the traditional retailer and consumers.
Benefits for the traditional retailer:
- Lower overhead costs
- Ability to reach customers beyond geographic location
- Ability to sell goods outside of traditional store hours
- More control over the tracking and selling process
Benefits for the consumer:
- Easier price and product comparisons
- Quicker and easier transactions
- Informed purchasing decisions