3 Reasons to Transition Your Company to The e-Commerce Market After COVID-19
*LOS ANGELES, CA / ACCESSWIRE / September 25, 2020 / *The shift to e-commerce was already thoroughly underway before the onset of COVID-19, but the global pandemic lit a fire under the trend towards a more digital economy.
Delivery technology is rapidly improving. In only a few years, Amazon drone deliveries and autonomous vehicles will likely become commonplace, diminishing the demand for brick-and-mortar retailers as delivery costs plummet. Retailers will need to resort to digital branding out of necessity to reach a broader customer base.
Consumer preferences are also increasingly signaling a preference for online ordering, especially with fears of an invisible virus circulating around the world. Record plunges in retail sales in April show just how fragile a critical sector of the economy can become when consumer preferences change from an uncontrollable event. However, despite the drop in consumer sales, online delivery marketplaces like Amazon, Instacart, Grubhub, and Postmates have thrived amid the crisis.
COVID-19 just accelerated the transition to the e-commerce market of smaller retailers, many of whom are left with sparse options besides taking their business digital. So, should you transition your local, small business to the Internet in the aftermath of a pandemic?
Here are three reasons why you should.
*A Shift to a Digital Economy is Inevitable *
The American economy has drastically changed over the last few decades. The ascendance of the information age has eschewed domestic manufacturing in favor of digital services and products - known as the dynamic shift from tangible to intangible goods.
For example, 80 percent of stock value today is accounted for by intangible goods like intellectual property and branding. Comparatively, tangible goods accounted for 83 percent of stock market company value in 1975. An economy that encompasses significantly more intangible goods than tangible ones is a byproduct of the Internet, and the trend is only gaining momentum as the costs of operating an online business continually decrease.
Foregoing a digital presence, even if it's as simple as a Wordpress e-commerce website connected to Stripe, can be a death knell for many smaller retailers as people spend copious amounts of time online shopping rather than popping into physical stores. However, there are legitimate reasons why small business owners are hesitant to make the digital leap - a lack of knowledge and the costs.
"Most businesses that want to make the transition to a digital presence and brand are short on both time and money," details Jaiden Vu, Founder of Black Peached. His company helps small businesses overcome the obstacles to getting a digital presence up and running, covering everything from video marketing to ad campaign management.
"Many of the smaller businesses are not aware of the nuances of social media marketing and how powerful they can be when used properly," continues Vu. "Especially the established stores that are run by older generations, it can be a major sticking point. We try to get everything running for them so they can manage their digital presence once we're done."
Considering the millions of unemployed and lost revenue from COVID lockdowns, the shift to a digital economy is not only inevitable -- it's a train that's rapidly departing. You want to be on that train before it's too late.
*Online Marketplaces & Delivery Services Have Surged During COVID*
Beyond the toilet paper shortage, you may have noticed that online delivery platforms were consistently back-logged, short of numerous items, and appeared unable to handle the surge in demand of March as COVID-19 fears ramped up. However, they adjusted quickly, and have been churning out consumer products at an unprecedented clip since.
For example, Amazon Fresh, which was mired by a shortage of delivery windows, increased its order capacity by 60 percent and Amazon hired more than 175K additional employees to cover the demand. Whole Foods, which is owned by Amazon, turned some of its stores in major cities like New York into delivery-only warehouses to better serve customers.
Grubhub and Postmates each also saw significant upticks in order volumes, with Postmates even partnering with Walgreens to deliver groceries.
Comparatively, small businesses like local groceries and retailers cannot operate with the same economies of scale and were forced to either close or implement onerous procedures like temperature checking and social distancing measures. Those obstacles are layered on top of the notion that people were deterred from going to a physical grocery store anyways.
What these developments demonstrate is something most people are well aware of - the time saving and efficiency of e-commerce have reached a tipping point; they're here to stay.
*The Opportunity for Boutique Products is Massive *
Many small businesses, from a services company to a mom-and-pop store, may be hesitant to enter the e-commerce market because they don't believe their product or service can evolve into a household brand. That idea is simply untrue.
Consumers, particularly young ones, have demonstrated in recent years that they want exclusive, boutique products. Smaller brands and retailers can carve out a niche in just about any sector. All it takes is a loyal following of customers, which may be much smaller than you think is necessary.
Kevin Kelly, the founding editor of Wired Magazine, wrote a famous essay in 2008 called "1,000 True Fans." He details how only 1,000 or even less loyal "true" customers can empower your business to thrive, and rake in enticing profit margins even if your business exists entirely in a niche market - like handcrafted figurines collectors.
You don't need a blockbuster product, just the ability to cultivate a small following and convert them into dedicated customers. The Internet helps you reach those customers.
The power of branding can go a long way in gathering a cult-like following as well. Just look at Supreme, who sells skateboard culture-infused apparel at ridiculous prices using deft marketing and exclusive merch drops. Taking your business digital doesn't mean you have to compete with Supreme, though, but it's a compelling example of how clever marketing can produce something special.
If you're stuck at home wondering how your business will survive the economic onslaught of COVID-19, look to the Internet as your benefactor.
You may have seriously considered taking your company digital for a while, but just never got around to it. Now is the time. E-commerce will come to dominate the retail and services sector in the next decade, and whether you think your boutique brand or niche offering can grow organically on the world wide web or not -- it's worth a shot.
*Contact:*
Kari Craig
Energent Media
kari@energentmedia.net
*SOURCE: *Energent Media
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