Businesses pivoting from brick and mortar to eCommerce has a dramatic effect on the present global economy, especially if you consider its impact on inflation and changing consumer behavior. The eCommerce industry is consistently expanding, triggering business owners to invest in online sales platforms. It’s not surprising to see a range of businesses exploring the concept of selling their consumer packaged goods online.
However, the real question remains: is transition worth it? At 805 Agency we see companies wrestle with this question every day. It's no longer a question if your business should open an online sales platform, but when.
The Growing Traffic to eCommerce Sites
We are not mincing words when we say the eCommerce industry is displaying a 23% Year-on-Year growth rate. There are no signs of this growth abating, and it’s important to consider the factors responsible for the growth of this technology-driven industry.
1. Mobile adaptivity
Increased reliance on the internet and mobile technologies are responsible for driving eCommerce sales. The technological advancements have allowed brands to come up with mobile-adaptive eCommerce solutions to enhance the customer experience. Customers also get real-time updates of their wishlist, new product launches, latest offers, and updates.
Convenience, hands down, is the single most important factor that keeps driving customers to these sites. Why would you go to a physical store when you can get the same product, same quality, same support, and better offers on the Internet? With increased competition, sellers must consider the user experience and optimize the ease of use for repeat sales. As a result, the customers receive high-quality service.
3. Omnichannel Retailing
Brands understand the need to develop a relationship with their customers. Customer interaction is an important factor in the eCommerce marketing strategy since brand loyalty is at stake. The cut-throat competition has made eCommerce brands take the help of every possible medium to connect with their customers. Facebook, Instagram, Amazon, and other third-party platforms provide more locations to sell products while driving traffic to owned pages and up-selling potential customers.
4. Individualized Solutions
Integrated tracking solutions and analytics platforms allow business owners to understand potential clientele. When a customer leaves their online shopping cart before completing the purchase, a business can use that information to retarget the customer and remind them to complete the purchase. In real life, finding a customer who visited a store is impossible. With the collected information, eCommerce brands are now able to deliver more personalized customer experiences. With the proper marketing team, an eCommerce brand knows exactly what a potential customer wants and how to drive conversions. Why wouldn’t customers go to a brand that gives them just the right product recommendations?
What Drives The CPG Industry To Online Platforms?
That’s a great question given that eCommerce or online transition has emerged as one of the top business trends this year. Per Forbes, 97% of executives say that Covid-19 sped up digital transformation. Let’s find out the various benefits of running an eCommerce store in 2020.
1. Significantly Reduces Operation Costs
An eCommerce business doesn’t require you to maintain a showroom and excessive inventory. By eliminating the costs that come with a physical space including a sales staff, utilities, and insurance just to name a few, a business can reallocate those funds to driving more traffic to the online sales platform resulting in higher revenue.
2. Sell Products Internationally
An eCommerce website is accessible across the nation and the world allowing a business to enter new markets and potential customers without having a physical presence. There are no geographical or language restrictions, making it easier for you to grow your customer outreach.
3. Makes Your Business Scalable
Scalability is a huge advantage, especially when expanding product verticals. With eCommerce, diversifying sales strategies and innovative marketing solutions are easy to implement and stand out from the competition.
4. Improved Marketing Opportunities
Online businesses do not rely on traditional advertising mediums. Digital marketing gives a business the opportunity to implement groundbreaking campaigns and easily visualize the results to optimize future endeavors.
5. Make Money While You Sleep
Unlike a brick-and-mortar store, an eCommerce store can function 24/7/365 without taking a break. Sales never sleep and neither will an eCommerce business which continues to see revenue as our team perfects your sales funnel.
How COVID-19 Plays a Major Role in the Transition?
COVID-19 has changed how we looked at eCommerce sites. It is no longer a matter of convenience for customers to purchase goods online. It has become a necessity since people’s lives are affected by stay-at-home orders.
The year-on-year revenue in 2020 for US retailers is up 68% as of April 2020 compared to 49% in January 2020.
The YoY eCommerce growth for the US and Canadian markets is an impressive 146%.
The global online shopping influx has led to conversion rates increasing by 8.8%.
A 2020 Remote Payments study reports that almost 72% of consumers are using mobile devices to shop in 2020.
How Can Companies Make their Online Transition?
With the right team, building an online sales platform is simple. Here are a few important tips you must consider.
1. Choose the Right Online Platform
We recommend using the top online eCommerce platform used by major brands and celebrities around the globe, Shopify. From the outside, Shopify looks like a drag and drop platform, until a trained professional implements proprietary code, custom tracking API's, integrated marketing solutions, and advanced design modifications that require a professional to develop. Shopify Plus ads another layer of advanced tools for increased expansion including wholesale.
2. Shipping and Fulfillment
Do you want to package and ship products yourself or hire a third-party service to get it done for you? We highly recommend hiring a third-party service to make the process simpler. Connect with us and we’ll share a host of shipping options.
3. Working With The Right People
Managing an online business is a different ball game altogether. You will have to manage your site, sales, marketing, customer support, order fulfillment, exchange and refunds, product availability, and other tasks. Partnering with a tech-savvy team that can help operate your online business.
4. Develop Marketing Strategy
Analyze your target customers and spend time A/B testing different campaigns to develop your brand message around your online potential clients. Failing to dedicate time to marketing will break your online business before it has a chance to flourish. Partner with marketing professionals to help develop and execute a solid marketing strategy, build content that drives conversions, and expand your social media platforms.
As a business in an uncertain economy, it is time to explore online sales. Many brands are. However, you must focus on pivoting with impact and successfully integrating into the new platform. Moving online should increase efficiency and drive higher levels of traffic for your business. If you're looking to make an impactful online transition or your sales have flatlined online, 805 Agency Inc. is here to help.