The National Retail Federation announced in 2018 that by the year 2024, e-commerce would be overtaking traditional retail. This follows the trend of many traditional retail stores reporting record losses in this past financial year.
Australian department store giant Big W, which is part of the Woolworths chain, announced in March of this year that the company planned on closing 60 of its retail stores. This was due to over $100 million in losses in the last financial year and $8 million in the past quarter.
The explanation to the recent failings of traditional retail comes down to the continual rise of e-commerce or in Layman’s terms, online shopping.
E-Commerce benefits customer and seller
E-commerce is overtaking traditional retail because it offers consumers convenience, variety and engagement with their everyday life. E-commerce also offers the seller significantly cheaper expenditures and more lucrative marketing strategies.
Companies like Amazon are making ‘chore shopping’ less of a chore. Where you would usually have to travel to the store to pick up toilet paper, washing detergent and trash bags, you can now opt in for auto-renewal services. Data gathering services record how often you use a product and automatically add it periodically to a recurring order system.
Online subscription services
This idea of recurring order system has already been mastered via online subscription services. Forbes report that the e-commerce subscription service has grown by 100% each year in the last 5 years and 15% of online shoppers have signed up to one or more subscriptions to receive products/services on a monthly basis. Online newspaper subscriptions, Microsoft Office, Netflix and iCloud storage are popular examples of subscription services that you are quite possibly subscribed to yourself. The benefit is that the seller receives a guarenteed weekly/monthly/annually payment from the customer as opposed to a one off income.
E-commerce allows anyone with a laptop to prosper
E-commerce is overtaking traditonal retail because you don’t have to be a big business to sell items online, anyone can do it. All you need is a laptop. Trends like ‘flipping’ are still popular, where people purchase items for cheap in store and flip them by selling them online for an increased price.
By selling and marketing online, you dramatically slash your expenses. Your website acts as your storefront, so you save incredible costs by not renting or buying a physical store location. You often don’t need employees, with catbots becoming increasingly popular to engage with site visitors. Insight reported in 2017 that 69% of customers were confortable engaging with a chatbot because they wanted a simple and direct answer to their question.
Social Media and e-commerce, a match made in heaven
Social media is also proving vital to the continual success of e-commerce. Many companies are engaging directly with consumers through Facebook and Instagram stories, by offering special deals and incentives. Buying products has never been more simple as the consumer simply has to click a link on the buinesses Instagram Bio or Twitter handle and be directed straight to a sales page. Businesses are continually releasing new apps which make future purchases more simple and appealing. IKEA recently launched their new app which allows the user to take a photo of their home and insert their desired product into the photo to see how it would like in their house.
With so many benefits to online shopping for the consumer and an equal array of benefits to the seller, e-commerce is overtaking traditional retail and will continue to do so. Remember, anything that can go online, WILL go online. There’s never been a better time to get online yourself and start your own e-commerce empire. It requires almost nil money to start up and you can start completely from scratch. Many people are now starting up their own online business and saying goodbye to the traditional 9-5, along with the traditional retail stores that symbolise it.
I run my own online business that educates people on how to earn a full-time income working online. I work closely with the Six Figure Mentors in providing people the tools to promote their own products and online services that can offer an extremely lucrative return. All of the benefits mentioned above can be directly capatilized on by yourself. If you would like to learn more about how to work online and capitalise on the boom of e-commerce, click here for the completely FREE video training series.