Thousands of new business ventures are being started online every year. There are many reasons one would opt to run an online business, one of the reason being low cost capital and less time to start the business.
Having an online business does not ensure success but there are several important reasons why ecommerce business is set up. Below we have listed a few strong reasons to start an ecommerce business.
Easy setup and low funding: With technological advancements, it has become easy to create an online store and acquire tools that can help in the online marketing and sales. It is easy to build online relationships and that can help in sourcing business. There are some businesses that help you with initial funding to get the business off ground and if even without that not much funding is needed if you want to start with a small ecommerce business. The operational costs are also very low.
Growing ecommerce industry: With so many businesses moving online, the ecommerce industry is growing leaps and bounds. The online stores are capturing market rapidly and it is expected to grow bigger than the offline market. The ecommerce is expected to peak nearly $1.6 trillion by the end of 2018. Thus with increasing momentum of the ecommerce industry, it is a good reason to start an ecommerce business.
Easy customer acquisition: With brick and mortar stores, it is most difficult to acquire customers. But with ecommerce business, as the marketing tactics and online purchasing are completely different. With strong social media presence and seamless opportunities it is easy to reach a large audience and acquire customers online.
Tax benefits: For ecommerce business running out of home, it is easy to get some expenses deducted from tax liability. This may not be the sole reason to open an ecommerce business. However, with other businesses attracting a large tax liability, online business is relatively a better option.
Sell more: Ecommerce portals have options to create deals and discounts to attract more customers. It is easy to study the customer behavior online which helps in targeting and offering the customers what they need. There are a lot of tools available that can help capture customer who have abandoned cart or want to look for related items. Content marketing also helps in reaching more customers and adding buyers again to the list of customers.
Shopping convenience: There are a lot of benefits of opening an ecommerce store online and one of them is that gives flexibility to its customers to shop at their convenience. There are various payment options as well as shipping options that will bring customers to the online store.
Earning 24/7: In ecommerce business, it is not important to stock products and incur the costs for it. A online store can easily make products available to customers by outsourcing. You do not have to be physically present to sell. You just need to get the ecommerce site running and sales will happen globally from anywhere in the world.
Simplified Logistics: With new technology, it is easy to arrange for distribution and logistics. With increase in business, it will become essential to incorporate different methods of distribution but for start ups, one can tie up with a few distributors to get the products easily to customers.
Customers are shopping online more and more and with new technology, it has become safe and easy to purchase online. It is easy to get connected online with customers to help them make a decision. The above are some of the most important reasons to start an ecommerce business in 2018.