Many of the retailers who have not yet created an online presence are reluctant due to perceived costs or technical challenges.
However, as the business world continues to be impacted by Covid-19, and more and more consumers move online to source goods ranging from furniture and gadgets to apparel and groceries, it is almost imperative for every retailer to have at least some form of digital presence.
This month, research from Australian consultancy Vamp found that 75 per cent of 300 respondents said they would do most of their Christmas shopping online this year, either to avoid crowds for health reasons or for convenience.
However, according to further research by Retail Radar, “there remain significant challenges to trading online, particularly for smaller retailers. The cost and time commitments are large and ongoing, it also requires technical skills and knowledge to get up and running.”
How to start an e-commerce business
Aside from the time commitment, one must be knowledgeable enough to start an online store; if not, there is a need to hire professionals - and let’s face it, few retailers could do this themselves without at least a little third-party expertise. But there are obvious benefits of e-commerce.
But now, the experts all seem to agree there is little choice but to go online. A number of large international retailers like H&M and Zara have already announced permanent store closures due to falling footfall - and the resulting migration of customers online. For many smaller retailers, the choice is black and white: either jump into online selling or close for good.
If that’s not sufficient motivation, here are three reasons why now is the right time to start selling online:
- Consumers got used to shopping online during Covid-19 lockdowns when they had little other choice - and now they seem to be staying there.
People have adapted to what they now know as “the new normal” and one feature of that is buying stuff online. A recent study estimates around 80 per cent of consumers use their mobile phones for shopping and another study says total time spent on mobile devices is rising, doubling to 48 per cent between 2014 and 2019. Likewise, the share of mobile in total e-commerce sales increased from 28.2 per cent in 2016 to 67.2 per cent in 2019.
Consumers also like the convenience of cashless payments with shopping online.
With artificial intelligence powering e-commerce platforms, customer service experience has also been improved. In just a single search they can get recommendations that fit their needs.
For many consumers who were underwhelmed by the online shopping experience when they first tried it years ago when it was less sophisticated, now they have returned by necessity, they’re impressed by the level of engagement and more inclined to return.
- It has never been easier to open online.
In years gone by building an online store required a large investment and a contract with an IT company. Nowadays, though, there are many solutions available out of the box - for the site experience and function, back-end inventory management and - most importantly - payment processing.
While you’ll still need a small army of professionals to create a global site processing hundreds of transactions an hour if you are a brand like Zara or Sony, a small retailer can do much of the work themselves, using free software like Wordpress with paid plugins and secure processing software. It’s possible to build a small online store for less than $1000 provided you have a customer database to inform of its existence and a means to communicate your online offer in your store.
If you don't want to run your own site, you can join an established B2C marketplace like Amazon or Catch and reach a wider range of customers - literally thousands of people online at any one time. But the flip side of that is competitive pressure on pricing and range from similar retailers already on board.
Interacting with your customers can also be made easier through chatbots, live chat and other direct other direct-communication channels that contribute to the overall customer experience designed specifically for your brand. Some of these you can add to your site via plugins - others you’ll need third-party support to include.
- No niche is too small in a word where we are all connected.
There is always a niche market somewhere that someone else has not thought about.
While anyone looking to find casual clothing might first think to head to a known brand or marketplace, many consumers have specialist needs or want something that is not widely available. Think about the likes of specialty or high-end equipment for sports enthusiasts, sound buffs, music collectors, for collectors of themed goods, souvenirs or memorabilia.
Other sites are sprouting up specialising in niche categories like men’s grooming, pregnancy wear, infant care or sites purely for pets.
Some smaller retailers might find they can specialise in a specific category where they have the right wholesale contacts and know something about the special needs of a group of consumers.
Be imaginative: For example, would you believe there is a store in the US selling goods for people who are left handed? Or a store in the UK selling only styluses for record players?
Niche markets can never be underestimated.
It’s not too late
In summary, if you are not online already, it is not too late. But if you are a retailer and you are not online - even in a basic way like by allowing people to contact you and order over social media - you will surely be left behind someday soon.
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