The e-commerce opportunity
In this digital age, entering the domain of e-commerce is unavoidable. Not only that, but any business which is not looking to capitalise on the extensive opportunities on offer in the electronic domain may as well be steering their Titanic operations straight for the nearest iceberg. In this day and age – it’s not just a matter of keeping up – it’s a case of staying in business.
In a nutshell, e-commerce or ‘electronic commerce’ is the method of doing business using the internet. Many would instantly think about buying and selling goods online, but the e-commerce opportunity goes much deeper than that. Selling services, receiving electronic payments and online marketing are all examples of e-commerce at work. Play the game right and you could be enjoying increased profits, boosted sales and a worldwide reputation.
As well as the ability to reach the world’s biggest market base 24/7, e-commerce offers businesses a range of other benefits, most notably in the reduced costs associated with marketing in this way. As an online retailer you are instantly cutting the cost of employing in-store staff, running a building and keeping the store’s image up to date. Indeed, while professionally producing an e-commerce website and keeping it maintained may cost a few thousand pounds each year, these costs pale into insignificance when compared to the cost of running and maintaining a customer facing store.
Now 2011 has drawn to a close, e-commerce marketers are beginning to look towards what the next 12 months will bring in terms of opportunities. Looking back over the last decade, online retailing has changed the face of the retail market and has seen companies like Amazon, eBay and Play.com appear from nowhere to become retail giants and household names in a very short space of time. However, even these internet monsters are beginning to feel the pinch, with Amazon reporting sales down in the second quarter of 2011 and other operators such as Overstock.com reporting drops in profits in the same period.
There may be a number of reasons for these reported drops in sales. With the current economic climate leading to pretty much stagnant incomes in most of the Western world, it is hardly surprising that this is starting to have an impact on online growth. In addition to this, with so many new businesses moving into e-commerce every day, online retailers are constantly battling with their peers for the lion’s share of the market. In order to stay afloat you not only need to miss that iceberg, you also need to do it at -50% RRP.



















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