While e-Commerce has been around for some time now it still amazes me to no end why so many people already in business fail to see the value of incorporating this new sales channel and revenue stream to their existing business model.
Taking your business and selling your goods or services online is a smart way to generate extra revenue, selling to customers that you could simply never reach otherwise.
Benefits of e-Commerce:
- Your business is open 24/7 and generates income even when you are sleeping.
- Busy and time poor customers can shop in comfort at their own leisure, and at any time that suits them.
- Your business will suddenly become highly scalable, reaching out to millions of new customers online, rather than hundreds of locals.
- If you are already in business and have existing products, you don’t need to purchase anything new to sell online.
- It costs far less to sell online without the usual high expenses such as retail leasing, shop fit outs, and sales staff to just name a few.
- The cost of entry is extremely low in comparison to setting up an actual “bricks and mortar” retail business in a shopping centre.
All of the points above make for a very convincing case for e-Commerce but none more so than the low entry costs in getting started, particularly for a retailer that is already in business.
Considering that stock already exists, the only real new costs are those associated with building an e-Commerce website, some content production, and once off data entry totalling between 25K for smaller retail websites, through to 100K for large multi product and services ones.
Compare this to setting up a conventional retail shop in a centre with fit out costs, shop front signage, leasing costs, and extra staff costs that can end up anywhere between 500K to 1 million dollars over 3 years.
The difference is massive as is the commitment from conventional business selling to online where the reach can be 100 times higher!
So do e-Commerce websites make money?
You bet they do!
Last year, Amazon had $136 billion in sales, and the company is projected to finish at the $177 billion mark this year.
Closer to home, Australians spent 18 billion dollars online in 2018 via a variety of companies selling numerous products and services.
- JB Hi-FI finishing as the premier online retailer with a 23.6% increase in sales and 31.7% profit growth.
- The Iconic founded in 2011 has quickly established itself as a leading online store for fashion and clothing items reaching over 10 millions visitors a month
- Dan Murphy retailer has a 50% share in the online liquor market. Their ecommerce store has 5000 products and an estimated 2 million buyers. Dan Murphy’s online business is growing three times faster compared to their brick and mortar stores.
- Kogan originally starting out in 2006 selling televisions online, the retailer now stocks a wide range of electronics, fashion and health related products with annual revenue expected to reach $241 million in 2018.
- Catch Of The Day is a $350 million Australian e-commerce giant where the website is bringing in a massive 450k visitors and 8,000 orders per day.
- Booktopia is Australia’s leading online bookstore. Established in 2004 with a budget of only $10 per day, the online business earned $85 Million in the 2015-16 financial year.
- Red Ballon is a unique ecommerce site that sells “experiences”. Starting in 2001 as only $25,000 and an innovative idea, the organisation has turned into a multi-million dollar revenue generating business.
The proof is in the pudding and the writing is definitely on the wall for those who take the time to look up and see it.
e-Commerce is alive and well, and here to stay with figures forecasted to continue to out grow and out perform bricks and mortar stores.
So get some advice, get a strategy in place, get a quote and plan, and then get ONBOARD before your competitors do.