An eCommerce store has many advantages over traditional physical store and that is why eCommerce marketing is great for sellers as well as buyers. eCommerce marketing is one of the best online internet business models.
Why eCommerce marketing is great for buyers and sellers?
In an eCommerce marketing business, both buyers and sellers benefit financially. Buyers find it easier to go about their shopping and have a great experience on the eCommerce website. Sellers also find eCommerce marketing much easier and quicker than selling products from a physical store. As both buyers and sellers benefit from eCommerce marketing, eCommerce is great for both buyers and sellers.
Let us look into more detail why eCommerce marketing business is great.
eCommerce marketing business involves much lower costs than other business models. With an eCommerce marketing business, you can save on costs at multiple levels.
Low capital costs
It costs you a lot lower to start eCommerce marketing business compared to a physical store. There are no building and material costs or real estate costs with eCommerce business. Firstly eCommerce marketing business does not need a physical brick and mortar premises to run the business. You do not need infrastructure or physical sales equipment etc. You only need to invest small money to develop your eCommerce website and pay for certain software applications and licenses. These expenses are much lower than the expenses like building, material, rent, sales equipment etc. that are involved in setting up a physical store.
If you have a physical store, you need physical store signs and hoardings to advertise. It costs a lot of money to prepare these. In eCommerce, you can prepare a logo online and share the same logo on social media, emails, few places on your website etc. at no extra cost. So branding works out much cheaper with eCommerce store than a physical store.
Low marketing costs
To advertise for a physical store, you may need to use lots of physical advertisement media. These can be expensive to install and them involve recurring costs. Whereas for an eCommerce store, you can use online advertising like SEO, SEM, social media etc. which is lot cheaper.
Low operational costs
Physical stores need human personnel to be stationed at each location to run the store. A small eCommerce store runs the business for you with no human presence being needed. This saves lots of costs. You will need technical support and telemarketing personnel in an eCommerce store only after the business reaches a certain size.
If you run a physical store, you may need to appoint few security personnel and security systems including CCTV etc. In an eCommerce store however, you do not need any security personnel on guard. You just need to install some software to make sure your eCommerce website is secure. This will cost just a small fraction of what it would cost you to provide security at a physical store.
With eCommerce marketing business, you can fully automate many functions such as billing, payments, inventory management and check out etc. As you can automate all aspects of an eCommerce store, the operating costs will be very low.
Low inventory costs
A physical store needs reasonably big inventory as a customer may turn up at the store and want to collect his purchases immediately. On the other hand, most eCommerce businesses do not need to have a big inventory. You can run an eCommerce store with a small inventory and monitor it using a web based inventory management system application. If you use a drop-ship business model, you do not need any inventory at all. This means the operational costs for an eCommerce store are much smaller than a physical store.
Low shopping costs for buyers
An eCommerce store means much lower costs to customers too. This is because customers do not have to travel long distances to physical shops. They can shop online from the comfort of their home or office or anywhere in the world. This cuts down travel costs for customers.
As you find it a lot less expensive to run an eCommerce store than a physical store, you can pass on some of the cost savings to customers. This means lesser shopping costs for the customers.
Business that never sleeps | Open 24*7/365
As an eCommerce store is on the internet, it never closes. eCommerce marketing business is always open. This is a big advantage as sales can happen all the time unlike a physical shop which can only sell during open hours which is normally day time. Being open 24*7/365 means people can shop on your eCommerce website during night and in holiday season too. Online shopping is great for people who work long hours. As normal shops close by the time they finish work, such people find online shopping from an eCommerce website very handy. If you were running a physical store 24*7/365, you would need to hire staff to be available round the clock. But with eCommerce store, you can keep your online store open all the time with no extra cost.
As eCommerce store is open all the time, the volume of sales will also be greater than normal. This would increase your revenues and profits too. This is why eCommerce marketing business is beneficial for both sellers and buyers. Sellers have the advantage that they can sell all the time. Buyers find it convenient as they can shop online any time.
Unlimited geographic coverage
A physical store can sell goods in a given geographical area. It is very unlikely that people from far off places would visit a shop to make purchases. However, an eCommerce store will not be subject to any such geographic constraints.
With eCommerce website, you can sell goods and services to people from all over the world. Anyone from anywhere in the world can access your eCommerce store online and buy online. Thus eCommerce marketing business has unlimited geographical coverage. If you are selling digital products such as training videos or eBooks, you can arrange for buyers to download these from your website. If you are selling physical products, you need to arrange shipment of your products worldwide through a reliable courier service. You need to include shipping charges in the price at checkout. Mobile commerce or mCommerce takes this concept of unlimited geographic coverage even further. mCommerce is nothing but eCommerce on mobile devices.
A small eCommerce store can sometimes do more business than a much larger sized physical store. This is only made possible by the ability of eCommerce store to reach buyers worldwide. A small eCommerce store can reach more international buyers worldwide than a physical store can reach in a local area. That is why eCommerce marketing is magical.
eCommerce business has a big advantage of organic traffic from search engines. With SEO and blogging, you can drive unlimited amount of free organic traffic to your eCommerce website. Such traffic gives a huge boost in sales and revenues for an eCommerce store. This level of organic growth is just impossible with a physical store. Most of the sales for physical stores come from branding and relations.
A physical store needs to be located in a very busy area to attract decent number of shoppers. For an eCommerce store, traffic can be generated from organic search. But with organic search, many times people arrive at an eCommerce website they never heard of in the past.
Once a visitor arrives on your eCommerce website, you can always re-target them in future. Re-targeting works well in many scenarios. For example, if a someone arrives on your website, browses some of your products and then leaves your website, you can re-target them. You can drive adverts to such visitors via Facebook or Google Adsense etc. When someone adds few products to basket but leaves your website without checking out, you can re-target them with adverts. You can use email marketing to re-target your website visitors too. You need to collect email addresses with an opt-in form on your website or social media to re-target them via email.
Better customer experience
Customers will have overall better customer experience with eCommerce stores than in physical stores. On an eCommerce website, the customer is in control of navigation. Whereas in a physical store, customer has no option but to navigate the store according to its layout. It is not possible for a customer to go straight to a specific product. On an eCommerce store, customer can choose to select a specific product quickly by searching for it. This is impossible in a physical shop.
Moreover, a customer can browse through an eCommerce store at own pace. Often customers feel a bit overwhelmed and pressurised in a physical shop. Some customers feel uncomfortable with face to face interactions with staff in a physical shop. As customers can browse through an eCommerce store on their own, they have a better experience overall than in a physical store. On an eCommerce store, a customer can also use live chat, email or social media if they want to communicate with the staff for any reason. Most people find virtual communications much easier than face to face communications.