e-Commerce is a market worth over $1 trillion, but it still has a long way to go. Here are some opportunities and challenges I see in the e-Commerce market today.
E-Commerce Today: Opportunities
- E-Commerce Sales Continue to Rise
Sales in the online retail industry were up 14% in 2014 to $406 billion and are expected to grow to $562 billion by 2018. The fastest growth in e-Commerce sales has come from women ages 25–34. As consumers become increasingly comfortable purchasing online, many industries and consumers are embracing e-Commerce as a shopping option. Online sales rose 5.9 percent in 2013, according to the Commerce Department.
2 E-Commerce Allows Small Businesses to Expand
Small businesses are growing in size due to online sales. Companies like Etsy and Amazon allow the sale of everything from T-shirts to handbags and everything in between. It also allows companies to expand into other parts of their business. Smaller companies can now create their own websites and sell their goods directly through their sites.
3 E-Commerce Continues to Drive Technology Innovation
Technology plays a huge role in driving e-Commerce sales. E-Commerce websites can use mobile devices, tablets, and computers to drive sales. They can also integrate social media and other technology to keep up with the times. This means that small businesses can compete with large corporations, especially since small businesses often have lower overhead costs. This leads to a lot of innovation within the tech industry.
- E-Commerce Enables Collaboration
E-Commerce websites are enabling collaboration. Websites like Amazon allow people to connect with other customers and share advice on products and services. There is also the option to create an online store and sell items directly. This helps companies cut costs and create a more effective business.
- E-Commerce Makes Purchasing Goods and Services Easier
Many companies and customers have embraced e-Commerce and its many benefits. In 2013, 60 percent of consumers used a mobile device to complete their purchases. E-Commerce is the preferred option for a variety of reasons, such as ease of shopping and shopping at any time.
E-Commerce Today: Challenges
1 Competition in E-Commerce
Businesses are entering the e-Commerce market in order to capitalize on the increasing online traffic and sales. This can leave small businesses behind. The top 10 e-Commerce sites grew 12.6% in 2012. But most small businesses only have a fraction of the resources to compete with large companies.
2 E-Commerce Can Be Difficult to Manage
While e-Commerce can be easy to manage, it can be hard to set up and maintain an e-Commerce website. E-Commerce websites require specific software and knowledge to manage and keep up with.
3 E-Commerce Can Be Expensive
Setting up an e-Commerce website is expensive, which can limit its growth. The average cost for a full-blown e-Commerce site is
It’s getting challenging