eCommerce can affect your business plan
What do you usually think about when someone mentions the word e-commerce? In my case, the image that springs to mind is a consumer buying a product or service online. To a certain extent, e-commerce is about online shopping (link to https://www.digitalglobal.com/how-online-shopping-will-be-trending-in-2020/), but its implications also go far beyond that.
Today, we’ll be taking a look at the ways e-commerce has reshaped business models all across the globe.
E-Commerce in Today’s Competitive Modern World
Today, our long-accepted economic practices are constantly being challenged by e-commerce and a never-ending parade of virtual companies, resulting in an extremely competitive business environment you’ve never seen before. While there are countless opportunities and newer markets for you to tap into because of globalization and the Internet, lying in wait will still be a hoard of fierce competitors looking to take your place in the market.
In an era where digital has taken reign over most industries, those who refuse to jump on the e-commerce train usually end up getting run over or left behind. Of course, this doesn’t mean you should immediately work with the first web design company you come across. You require a perfectly thought-out strategy that allows you to snatch that lead away from your competitors. Your plan should help you accomplish these three important goals: boost revenue, expand your company, and take your business to new heights.
E-Commerce: Disrupting the Very Core of Conventional Businesses
It looks like e-commerce isn’t going anywhere. It’s a threat that cannot be contained—an epidemic affecting all businesses, from little start-ups to majestic enterprises. Your company may have been an industry leader in the last five years but that doesn’t mean this will be the case in the next five. That’s the level of threat posed by e-commerce for traditional businesses who refuse to embrace the ever-shifting commercial landscape.
Adopting the new and improved ways of e-commerce into your business entails more than just updating IT infrastructure. You have to remodel the very core of your business—from management plans to employee function, every aspect should follow an e-commerce-first approach.
Which business do you think will win out in the end: conventional organizations or modern-age e-commerce companies? Who, in the end, will be able to retain their market shares and successfully expand to new markets?
We need to keep in mind that old principles for running businesses are no longer relevant in today’s world. Running a business based on obsolete practices is a complete waste of time and money, and it’s not going to get you anywhere in this incredibly competitive industry.
Here are the remarkable ways in which e-commerce-based businesses have routed traditional ones.
Forget vertical integration.
- Once considered one of the best practices for running a business for many years, vertical integration has now become irrelevant in today’s ever-changing commercial landscape. Businesses in the past used to think that the best way to get something done was to do it themselves. Growing companies then started making every aspect of their operations an in-house job, from retail, research and development, and, in some cases, even legal matters. It was this kind of mentality that resulted in huge overhead costs, inflexibility, and inefficiency for many businesses. The advent of e-commerce has allowed today’s businesses to outsource tasks that are not part of their core practice, effectively reducing overhead costs, eliminating unnecessary expenses, minimizing capital expenditure, and helping businesses focus on their core service or product.
- A little more than a decade ago, businesses would have found it nearly impossible to tap into other consumer markets. Today, doing that would be all in a day’s work for any digital marketing professional. Now you can reach out to consumers in the farthest ends of the world if you so desire. E-commerce has made it possible for you to connect with every single one of your target customers. You’re no longer limited to selling products and services to the local market. This recent development has also leveled the playing field for small businesses, allowing them to target their share of large audiences spanning the globe.
More affordable initial business set-up.
- Back then, setting up a business would require you to have huge capital. This no longer is the case because of e-commerce. Today, anyone who has the desire to start their own business would be able to do so with only minimal investments. Since you’re able to sell online, there’s no need to carry a sizeable inventory. You can simply add to your inventory depending on customer demand. More importantly, e-commerce has become responsible for the great decrease in the overhead costs of managing a business.
More meaningful collaborations.
- If we were to go by the conventional ways of running a business, a small business owner specializing in a certain niche, like yourself, would only have access limited to specific markets. Even if you wanted to, it would be impossible to aim for higher profits because the bigger markets simply weren’t open to you. These days, small businesses are given the opportunity to sign up on market platforms, paying only a tiny fee so that they can sell their products. Through these platforms, their market reach significantly broadens, resulting in a win-win situation for both parties and fulfilling collaboration.
So long, middlemen!
- E-commerce has made it possible for businesses to sell directly to their customers without needing any middlemen. Small businesses owners usually had to rely on brokers or vendors to distribute their products to locations beyond their vicinity. Today, you simply have to work with a company that can design the ideal online shop for your business. Your online store is what connects you directly to your target audiences, putting an end to middlemen involvement.
There’s no need to close your business.
- These days, if your business isn’t open 24 hours a day, 7 days a week, you won’t be able to compete well enough. It’s a good thing that this, again, has been made possible with the emergence of e-commerce. There will be no state of dormancy for your business whatsoever, and sales will be happening at any time. Old-school business owners were wired to close shop by the day’s end. This limited their customers to make a purchase only within a specific time. This isn’t how today’s shoppers want to go about their shopping. To make it as a business in this modern world, you have to take full advantage of the way e-commerce offers your customers the convenience of shopping from your store at any time they wish, even if it happens to be in the wee hours of the morning.
You don’t have to own a big company.
- These days, it barely makes a difference if you run a large company with a ton of employees or a small online shop managed by you and your friend-slash-business partner. As I mentioned prior, the commercial landscape has now become a more level playing field because of e-commerce. Small, traditional businesses used to suffer a lot from being understaffed. These stores couldn’t even begin to compete with their more massive counterparts. Now, it seems that the roles have switched and the larger, clunkier corporations have become more difficult to manage compared to their smaller equivalents in the digital world.
Business advertising is taken to a whole new level.
- There’s been a sweeping change in the way modern consumers make their purchases. It’s only right that these changes resulted in the variation of advertising tactics as well. Even consumers who are fond of shopping the traditional way don’t limit themselves to products sold in brick-and-mortar stores; they look up items on the Internet, read online reviews, and compare prices between digital and physical stores before making the decision to buy. Considering that your target audiences are going to approach buying from both conventional and modern angles, you as a business owner would need to adapt and evolve. Even if it goes against your very principle to divert from something that has brought your store success, sometimes it is necessary. Remember that the things that bring you success today may no longer be the same things responsible for your success tomorrow.
Digital marketing allows you to constantly meet the demands of the tech-savvy audiences of today. You gain a huge advantage from being able to utilize the following tactics: paid ads, email marketing, social media management, and search engine optimization (link to https://www.digitalglobal.com/5-reasons-why-content-marketing-will-improve-seo/) to push your business to a level you have never seen or experienced before.
E-commerce has made a huge impact on the way modern businesses operate. No matter what kind of business you’re running, you can’t escape its sweeping grasp. When most of today’s consumers go shopping, the first thing they do is fire up an online search. They have information at the tip of their fingertips, making them well-informed and savvy buyers.
As a business operating in today’s dynamic landscape, you need to do your part in adapting and evolving. Stability can be your greatest downfall in the race to outpace your competitors. Why? Because it’s highly likely that most of them will be open to change. Change is the very nature of the commercial environment and you, as the head of your company, need to find ways to keep evolving, introducing new facilities, and making use of current technologies to woo customers who are getting more and more informed by the day.
It’s going to be a wild ride ahead, but are you ready to take that e-commerce leap to skyrocket your business’ growth? You’re more than welcome to share your thoughts and insights in the comments section.
Check out these articles:
- Best Shopping Strategies To Save You Money
- 5 Black Friday Shopping Strategies
- Why Free Shipping Is Actually A Myth
- How To Shop Smarter, Not Harder!
- Why Product Reviews Are Important For Online Business
- Digital Global JV® Affiliates
Sharing is caring! Link to this article:
How E-Commerce Can Impact Your Business