One would ask why do I need an e-commerce platform for my business in 2020? Since the boom of the dot-com bubble in the early 2000s, e-commerce has seen a huge rise in popularity globally. The year 2002 was marked as huge milestone for the internet industry. A few great events took place in a space of a 2 years and totally redefined the future of the internet and ways of conducting business. Firstly between year 1995 and the March 2000, the Nasdaq Composite stock market index rose to about 400%, only to fall 78% from its peak by late October the year 2002. Secondly during the famous crash, many online shopping companies, such as Pets.com, Webvan, and Boo.com, as well as several communication companies, such as Worldcom, NorthPoint Communications, and Global Crossing, failed and shut down. Lastly some companies, like Cisco, whose stock declined by almost 86%, and Qualcomm, lost a large portion of their market capitalization but survived. E-commerce giants such as eBay and Amazon.com, also lost value but recovered quickly.
The falls of the markets and the significance of those events reinvented the e-commerce industry. Both eBay and Amazon.com became e-commerce giants by the end of 2005. But by 2009, Amazon had almost 27% of the total market share for e-commerce in the US. Now in the year 2020, Amazon has a market share of over 44% in the US. According to Statista , “Amazon recorded 193.6 billion in net sales, the United States were Amazon’s biggest market in 2019. Germany was ranked second with 22.2 billion U.S. dollars, ahead of the UK with 17.5 billion.”
Amazon recorded 193.6 billion in net sales for the year 2019
Fast forward to the year 2020 and the e-commerce sector has grown by over a staggering 387% in global volumes and sales. E-commerce is the future and with more shops closing down, online shopping is the best alternative. Not forgetting the huge global pandemic that has hit us. Covid-19 has forced businesses to innovate and find new ways to stay afloat. With the aid of social media marketing and online promotions, brands and businesses now have the measures to sell their product and services online. In addition to selling products online, social media tools provide an extensive market. In other words, any potential customer or audience forma nay location around the world can now interact and purchase your goods and services.
The rise of e-commerce has since disrupted huge corporations and businesses that pre existed as brick and mortar business models. As a brand or business owner, it is important to have online presence at this day and age. An e-commerce platform will allow your customers to directly interact and purchase goods using their mobile devices from any location globally. Similarly, there is a huge rise in online accessibility across the globe. Thank to the internet, you have the potential to tap into untouched markets. These markets include over Africa, South America, Asia and the rest of the world. Explore infinite ways on how to grow your business on a global scale. According to a report by Shopify, “2019, ecommerce share of total global retail sales was 14.1% and analysts only expect it to increase 2% a year through 2023: Much of ecommerce growth is attributable to Amazon, which is growing at above-market rates and was expected to account for 37.7% of online U.S. sales in 2019.” 2020 is the year for online growth for your website, e-commerce platform and business.
Social media tools help provide an extensive market.
Well in case you have not noticed how the Covid19 pandemic has distributed physical businesses, let us paint a picture with recent statistics. Firstly, many big and small businesses globally have closed their doors and let off many employees due to the shut down of economies. Secondly, many investors are shying away from venture capital investments for startups due to market uncertainty. Thirdly, smaller economies in developing countries are finding it hard to sustain their main industries due to his global pandemic. Covid-19 has lead to the shut down of gyms, schools, places of worship, public areas, transport facilities and social areas. Shops have curfews and can only allow a certain number of people inside at a time.
Meanwhile, people are still looking for ways to spend their money to purchase goods and e-commerce/online shopping is the answer. This is the year where people are mandated by law to stay at home for safety reasons and alternative shopping has come to the rescue. As people are spending more time at home, they are on their phones almost 60% of the time more than average. That also answers why do you need an e-commerce platform for your business in 2020. People are always online scouring the internet searching for something new. Selling your services and products online is cheap and affordable. You can save lots of money in many ways. You do not have to have a physical warehouse or shop to operate and sell products and services anymore. All you need is an online store and digital marketing solutions. Check out of online store solutions to see how you can improve your business and brand toady.
According to Forbes, “Just over 306 million Americans are affected by stay-at-home orders, nearly 95% of the U.S. population. COVID-19 will forever change retailing, and its initial impact on e-Commerce is creating challenges to online selling & service no one imagined in January.” In addition, a a recent Morning Consult study found that “24% of consumers said they wouldn’t feel comfortable shopping in a mall for more than six months, 16% said they would feel comfortable in the next three months. The results are based on surveys with 2,200 U.S. adults between April 7 and April 9. Consumers are more motivated than ever to stay home and shop online, creating the ideal market conditions to fast-track, test, and launch new experience-driven mobile apps, sites, and touchpoints across their platform.”
Integrating your e-commerce platform with a reliable and reputable shipping agent will grant your business security. This is not only be great for your business but this will improve your customers loyalty and morale. They are able to buy goods from your website and get them delivered in less than 5 days! There are a number of reliable shipping solutions for your business depending on your location. Because each country has its own rules and regulations, it’s important to understand those regulations as per country you wish to operate in. Shipping service providers as well as import/export agents are always on cue to assist businesses that want to ship their goods globally. Make sure you do your research! Research will help you find the perfect shipping partner for you business. Lastly, your customers are then able to track and trace their ordered products on route to its final destination. Your e-commerce platform will provide flexible and efficient solutions to your customers and interactive customer relations and support services.
Thanks to the internet, you have the potential to tap into untouched markets.
There are 5 main various types of e-commerce business models. Depending on your idea and aim, you can choose any type that will work for you. E-commerce solutions can simplify your business operations, stimulate sales and revenue. Below is a list of various e-commerce types and examples of how each one works:
Hell yeah! 2020 is the year you get the best e-commerce platform for your business. Over 10 years of experience has put us way ahead of our competitors. Pharrage Tech operates at a global scale and provides solutions to any business, anywhere in the world! We provide value, information and quality products for our customers. For instance, we write these blog posts to help you and your brand reach your maximum potential. In addition to helping many customers, we create an internal case study for each client case so that will in turn help us help external customers. This helps us lay out blueprints for businesses and initiate the scale of development for effective service delivery. In conclusion, e-commerce is not going anywhere. It is the next standard model for universal shopping. Unique shopping experiences will continue to lure in more users and ultimately grow an e-commerce platform.