In today’s post I want to explain why open an ecommerce store. But first I want to ask you a very simple question.
How much have you bought online lately? Mine is a rhetorical question because I already know the answer. You bought more things online than you did last year.
In this historic moment, after these years of pandemic, you probably thanked the creator of the internet and those who started the online sale of products.
The fact is that the number of those who decided to buy products or shop online on some ecommerce stores has grown dramatically. So, if you have wondered “why to open an eCommerce” know that this is the best time to start your e-commerce and start an online business that could bring you a lot of revenue and a lot of satisfaction.
So, is there any statistical data supporting what I wrote above? Of course there is. Just think that already in 2004, and so 19 years ago, thanks to online sales on the internet a huge turnover was produced:
In 2018 40% of people made online purchased with a commercial growth of 12% more than 2017.
So over the course of a year (2017-2018) there was a 22% increase in the world’s population who bought products online.
63% of all purchases made on ecommerce came from mobile devices (such as smartphones and tablets).
The data mentioned concern the world market but what about the trend of e-commerce in Italy?
Statistics indicate an increase in e-commerce turnover in some sectors where simultaneously there is a decrease in sales on the physical and traditional market.
A concrete example is tourism and clothing. Isn’t it true that most of us now buy stuff for traveling and clothing or fashion accessories online?
Many manufacturers have understood the advantage of ecommerce by addressing the final consumer directly with an online shop and cutting out the entire intermediate supply chain.
For example , as early as 2013, 27% of total tourism turnover came from online sales.
Having an online store also helps offline selling.
Does that sound like a contradiction? No, it’s not, and I’ll tell you why. Is it not true that often, before going to the physical store to buy a product or a trip you search online to evaluate prices, information, reviews and other aspects?
According to a statistic made by interviewing a sample of people, it was found that 31% of respondents said that if they did not have the internet to inquire about a given product they would probably never have purchased the product they wanted.
In Italy 8 out of 10 are the people who get information on the internet before deciding to buy a product in a physical store. You probably did, and so did I. From here it is clear that if you have a physical store you could significantly increase purchases in the store thanks to ecommerce.
In recent months we have been contacted by many companies that are intelligently adapting to what is an epochal transformation, where you can really exploit the internet not to survive this crisis but rather to give new life to your business.
Maybe you wonder if today having an ecommerce is the solution for your company?
Some people ask this question because they are not sure that the type of service or product they offer can also be sold online. Of course, before making any decisions you will need to perform an analysis of the industry, competitors and make the appropriate assessments.
However, we want to make you aware that today many types of businesses can sell online and we want to give you some practical examples.
For example, if you are a farmer who produces olive oil, wine or other agricultural products, you should know that there are so many people looking for niche products.
In recent years also rose ecommerce stores offering tax advice and legal consultancy. If you are a lawyer or an accountant there are ways to create a site that is halfway between a showcase site of your business and an e-commerce site where people can buy advice exactly as if it were a material product.
Maybe you wonder if it really works? Yes, we can tell it to you without any doubt because internet users themselves search on Google for these types of products and services. Do you want some examples?
Organic chickpeas price.
Online furnishing accessories.
Online legal consultancy
Online tax consultancy
Let me show you the screenshot of what people search upon the search engine about some of the keyword phrases mentioned above.
In this example I show you some data about the key phrase “online legal advice”.
The “search volume” pane indicates the average of how many people make this search on Google every month, about 260. One more interesting fact is the Covid impact that you can see in the last box on the right. Have you noticed that at some point the curve spikes up?
This means that in this historical period many more people have sought an online legal advice service than in the past year when we knew nothing about Covid.
Professionals understood the potential of the digital world and have transformed its institutional site into an ecommerce platform where customers can buy and pay for consulting in advance.
Now let’s do a further example on a real product and use the key “doghouse”.
Here we can see a monthly research volume of 720 with a high Covid impact in the period from March to May to then undergo a decline in the summer months and a rise from September onwards.
I wanted to make these few examples (there would be many more) to help you understand that if you have a business or professional studio it is now becoming so important to have an ecommerce store representing you.
The purchase methods of products have changed since a long time but now, after the experience with Coronavirus has increased dramatically the volume of people who buy products, services and consulting of any kind in the online environment.
With the premises above the answer seems obvious but there is a “but”…
E-commerce is convenient but as long as the money invested make a profit and above all that lead you to an increase in revenue also because the price to build an electronic store generally can not be under 2,500 euros or plus, depending on the type of shop, the amount of products to be put online and the platform of realization. (Woocommerce, prestashop, Magento and others)
Very often it happens that consistent sums are invested for the realization of an online store, also hopes and expectations are part of the investment and oftentimes disappointments can come
Ecommerce does not sell, does not sell enough and there is no economic return of the money invested. How can this happen?
If this situation sounds familiar to you, perhaps you already have an online shop: here are some reasons why sometimes electronic sales do not bring the desired results.
The reasons why an e-commerce does not sell can be different and you always have to perform a 360-degree analysis from the strategic and technical point of view. However, here is a list of the main causes by which an online store does not work as it should:
The online store is slow, pages do not load quickly and as a result visitors leave it. Obviously you can’t sell products online with such a slow website. In this case it is necessary to verify the performance of the server and the technical aspects of the site.
Non responsive website
The online store is not available on mobile devices (smartphones, tablets). Some ecommerce stores are dated and date back to the years when websites were designed only for desktop (computer screen). These online shops should be restructured with technology to make the site responsive, in other words adaptable to the screen of any smartphone and any size, from the screen 28 or 32 inches to screens as small as 4 or 5 inches or less.
User experience and usability are essential in ecommerce. If the user can not easily find the product he needs or the site is not very usable (especially from a mobile phone) it is easy for him to leave before completing a purchase.
This could be one more reason why the site makes little profit. If you have noticed a frequent abandonment of the cart after the insertion of products there is probably some problem to be solved and that must be analyzed in detail. There are also ways to recover abandoned carts and tempt the user to complete the purchase.
The ecommerce is not ranked on Google with adequate SEO factors. Remember the keywords I showed you the chart with search volumes? It is crucial that ecommerce is positioned on Google in an organic way on the majority of keywords that people search for a given product. If not, how will they get to the shop?
Lack of strategy
We often encounter ecommerce’s owners that do not sell because their sites were made “with the feet” rather than with the head and therefore without a shred of strategy: consequence is the difficulty for people to buy a product (although the best product) on a site with such problems.
These are just a few reasons why ecommerce doesn’t work properly and doesn’t sell as well as it could and should. Each of the problems mentioned above have a solution but of course we will have to make the appropriate analysis and the necessary interventions.
I know I might have scared you off with an article like this, but again, it’s the truth that always has to be told.
Anyone who offers you ecommerce to sell online as if it is something to take for granted is not doing you a favor, but maybe only his interests.
Now, my goal is not to discourage you from starting an online store, instead I will tell you about the resulting benefits, but on the other hand I also had to consciously explain the critical aspects of ecommerce to make you aware.
Knowledge makes a difference and this awareness can help you make assessments before embarking on an adventure that could make your fortune as well as your misfortune if you make bad choices.
Now let’s talk about the advantages of ecommerce:
expanding your offline business to the web
selling products not only locally, but throughout UK and/or abroad
increasing your turnover and see it grow from year to year
to automate sales processes
while your e-commerce sells you can dedicate yourself to other important tasks such as creating new business opportunities
no time limit for opening
saving time you may have to spend in traffic to reach a store, waiting times at checkout etc