The advantages of selling online are very obvious. Marketplace sites made it so easy for you to do so. Just create an account and in a matter of minutes, you are good to go. You can now reach out to an audience you cannot sell to before. These marketplace sites do the job for you. They even have a tremendous rank in SEO, you can’t afford to have. Nevertheless, you should not overlook some of the risks that go with this Industry. I mean, there is always a risk, in both online and traditional selling.
In addition, selling on marketplaces is not a guarantee for success. Online marketplace sites do have their own challenges that may not be a profitable option, especially for startup businesses. Identifying these hurdles from the beginning will be very helpful for you to decide if online selling can be profitable for your business.
Top of mind, I have 3 main risks you need to consider when shopping online:
The primary concern for a retailer to survive and be successful in a competitive environment is a healthy profit margin. The marketplace seller fees on its own can be a challenge. There different types, variation or combination of monthly seller fees, per-item fees, shipping fees, referral fees, and closing fees. These are all part of the cost of doing business on an already built selling platform. You also have to deal with cut-throat competition. The reason customers shop online is because of the low cost. Because of this, sellers compete with one another on the same platform in terms of price.
For quite some time now we have been talking about the advantages of buying online. Now, why not talk about the advantages of selling online. Let’s talk about e-commerce from a seller’s perspective.
Like shopping online, selling online has a number of advantages over selling via traditional methods. Since there is a number of advantages, we have listed down some of the top reasons why it is advantageous to sell online:
We were young once……not that long ago. Remember when you crave for those Eminem and Black Eyed Peas album? Xbox 360 or PS2 games you can’t leave without? Question is, does the teens today purchase the same stuff? With the introduction of e-commerce and m-commerce, what has changed? Purchasing habits? Trends? Or is it just the same? Perhaps we simply provided them with a different tool or platform?
According to our previous article “THE MARKET FOR TEENS IN ONLINE SHOPPING IS GROWING!” https://getitim.com/blogs/news/the-market-for-teens-in-online-shopping-is-growing , the growing amount of purchase based on statista.com research is content. Content which includes apps, games, music, videos, and e-books.
Fashion is a strong contender when it comes to online purchases. We are not just talking about the latest jeans or shirts. We are talking about sports fashion, sneakers, jackets, slip-on, bags and other sports accessories. Other fashion accessories include caps, hats, wearable gadgets and jewelry.
There is a growing army of online shoppers trending in the "e and m-commerce" market. It is also highly possible that in sheer volume, they might outspend their parents. Last August of 2016, www.statista.com released a report regarding Percentage of online shoppers among American teenagers:
“This statistic illustrates the online shopping penetration among teenage internet users in the United States as of August 2016. During the survey period, 68 percent of teen respondents stated that they shopped online, compared to 88 percent of teenagers who made purchases in-store.”
Considering their current purchase online which includes content (music, videos, e-books), gadgets, fashion accessories, athletic wear to name a few, it is not surprising considering the length of time they spend online. According to www.statista.com :
As retailers, we depend a lot on analytics to know more about our market. When studying about the purchasing habits of men and women, it is interesting to note the similarities and complexities between them. Take the case for example of these research published by E-Commerce Platforms:
Brief information about the purchasing habits of men and women.
– Both women and men tend to do most of the shopping from their laptops
– Men are more likely to use their smartphones for a purchase, (45% vs. 34%)
– Women are much more likely to buy something if it is on sale. (74% vs. 54%
– Male shoppers tend to stop shopping after they find the first workable product
– Female shoppers are more likely to plan out their shopping strategies and make their purchases based on future needs
What are millennials and how are they affecting e-commerce? First, let us identify who are the millennials. For some twisted reason, our generation (Generation X 38-53 years old) and worse, the baby boomers (ages 54-72 years old) are fond of calling stereotype teenagers (age 13 to 19) and even young adults (19 to 21 years old) as millennials. Sadly, this is wrong. Millennials are people born between 1981 to 1996 according to Pew Research Center.
This people of this generation are not the noisy, lazy, entitled kids sleeping on your couch or basement (or whatever stereotype joke you can think of). The millennials are now adults aged 22-37. A good number of them are working professionals and have families. Which also means they are your current market for online shopping.
While doing a research on customer behavior and decision making on online purchase, I noticed that the number one reason for making a purchase was never about the price. True that price, deals, and offer plays a big role in decision making. It is noticeably not the most important one. It is surprisingly similar to in-store purchases.
According to Episerver, the modern definition of “Commerce, no longer means making a purchase, but rather encompasses the entire journey from research to final sale. This modern definition of commerce includes activities like inspiration seeking, problem-solving, product discovery, product research, product comparison and more.” Hence, e-commerce is not just about the price, but the customer experience.
A Perk - /pərk/ is defined as to become more cheerful, lively, or interesting. So my question is, what is it about online shopping that cheers you up, makes you lively and you find really interesting?
We all know that shopping online can be a very cost-effective experience. Nevertheless, you can still get more for your buck if you take note of the following:
Mobile Commerce is taking the E-Commerce industry by storm! In the age of instant gratification and rising consumer demand for fast, quick, safe and personalized transactions, online customers are quickly adapting to the venerable Mobile Phones or Smart Phones as a shopping tool.
As a member of Generation X, I still remember how were so excited using Motorola and Nokia’s first generation mobile phone. Who would have thought that 25 years after, our mobile phones will turn into portable computers with high definition colored display? What is more remarkable is how we quickly assimilated this awesome technology into our daily life. It’s integration to our fast pace living is simply awesome.
Last April, we wrote about some trends in online shopping:
“According to https://www.statista.com/ (as of last August 2016), Americans are getting almost equally accustomed using their mobile devices as much as they are using their desktops and PCs when shopping online. The information presented shows that 44.8% of the respondents are more comfortable using their tablet and 44.8% using their smartphones. This shouldn’t come as a surprise anymore when there are 237.6 million smartphone users in the US estimated for 2018. On top of this, Americans posted a 24% e-commerce spending in 2017 using a mobile device. Overall, the growing use of mobile device for e-commerce or m-commerce has sprung some concerns in its use.”
This was last month’s news. As E and M-Commerce continue to evolve at a very rapid pace, it can be very challenging to keep up with what’s latest so you can continue to boost your sales and stay on top of the competition. So what is new?