Investing In E-commerce: Why It Makes Sense
The popularity of e-commerce has grown over the years. Investing in e-commerce is a viable business option. Some reasons why you should think about it include:
The number of people using online platforms continues to rise every single day. Research shows that by 2024, e-commerce will account for 21.8% of global retail sales
. So why not get a share of the pie.
The popularity could be due to the fact that e-commerce is convenient. Shoppers also get access to a wide pool of suppliers.
The Corona pandemic also had a role to play in the rapid growth. More people turned to online platforms to shop for products or services. It was an effective way to adhere to social distancing calls. The quarantines at the beginning of the outbreak also left little choice.
Setting Up Shop Is Easy
Setting up an e-commerce platform is easy and inexpensive. You cannot even start to compare the cost with what you would spend on a physical store. There are tons of options, including Magento, Bigcommerce, Woocommerce, and Shopify.
E-commerce models like Dropshipping don’t even require you to have inventory. Your role is that of a middleman between suppliers and customers. As such, you receive their orders and forward them to the supplier. The supplier does the fulfilment role, including shipping the product to the buyer.
Tons of Business Opportunities
E-commerce provides you with so many business opportunities. These include:
- Business to Business (B2B) model sells goods or products to other business
- Business-to-consumer (B2C) targets the end consumer. It removes the need for intermediaries or retailers. Customers come to the website, place the orders and receive the goods from you.
- Consumer-to-consumer (C2C) is the model for marketplaces like Amazon and eBay. Individuals sell to each other through third party sites.
- Consumer-to-business (C2B) defines businesses like freelancing. Individuals offer their services to companies for a price.